Gene Mundt - Let's Talk Mortgages & Real Estate!

 

 

As you probably know by now, the President recently announced new updates to the Homeowner Affordability and Stability/Making Home Affordable Plan.

 

The hopes attached to this new update are that many homeowners, currently feeling the pain of fallen housing values and rising costs, will now be capable of refinancing their mortgages and thus, finding financial relief.

 

I have included a news release regarding this recent announcement/plan below. This was posted on the website: http://www.governmentrefinanceassistance.com

 

My phone has been ringing off the hook as a result of the President's announcement. Many homeowners are pinning their hopes on this governmental program's new update. When speaking to these callers, I can hear stress ... their unsaid pleas ... the anticipation in their voices. And I'm hoping this new update lives up to every one of those emotions, their needs, and more.

 

But as of my writing this post, there are no specifics available to lenders regarding this program update. I have nothing that I can in detail, in good faith, pass on to those making inquiries.

 

If you will notice in the announcement that I include below, those much-needed specifics we lenders need to assess WHAT we can do for our clients ... or IF we can do anything to assist those in need, will not be available until at least November 15th, 2011.

 

Knowing how the government typically handles things regarding dates and release of information, that November 15th date may be somewhat optimistic. And with so many homeowners hoping that this program may be the answer to their prayers, that may end-up being a source of real frustration.

 

Those eagerly awaiting the specifics of this new update ... please take special note regarding the release date of this program update/specifics. Remain wary of any information given to you prior to that date. As far as I am aware, NO ONE has inside information on this. Again, those specifics will not be available to lenders until November 15th at the earliest.

 

Until that time, stay in touch with your mortgage lender. Keep the communication open and flowing. Should you be in need of a mortgage lender, actively search for an experienced, knowledgeable mortgage professional during this time. That way when information becomes available on or around November 15th, 2011, you will be prepared to take action.

 

Should you have further questions regarding your mortgage options, please feel free to contact me through any of the options found below ... or contact your own lending professional.

 

 

As mentioned above, the news release ...

 

 

LATEST GOVT-RELATED MORTGAGE NEWS:

 

Major changes to the HARP program announced

 

 

Filed under The Homeowner Affordability and Stability Plan

 

Widely anticipated changes to the Home Affordable Refinance Program (HARP) were announced this morning. The updates include several but not all of the changes most borrowers have been hoping for. Among the changes are the following:

1. There is no longer a 125% loan to value limit to the program. Going forward HARP loans can theoretically work for any loan backed by Fannie Mae or Freddie Mac regardless of how underwater the home is.

2. A full appraisal will not be required in all cases. Reports are that in some cases an automatic valuation system may be used.

3. Mortgage insurance providers have reportedly agreed to automatically transfer mortgage insurance coverage to the new loan. If this is true it will be a huge change because previously borrowers with mortgage insurance were not able to participate in the HARP program.

Unfortunately, the cut off dates for eligibility were not changed so any loans taken out after May of 2009 are still not eligible for the program.

The FHFA said the operational details for the program will be available by November 15th 2011. That probably means that the new program won’t be up and running with most authorized lenders until December. The question yet to be answered is how many authorized lenders will choose to participate in the new version of the program in the months to come. But assuming several authorized lenders do participate there is no denying that removing the 125% limit and the allowing borrowers with mortgage insurance to participate will open the program to vastly more borrowers.

 

 

      *  If looking for mortgage or credit information or in need of mortgage services, please contact me through any of the following:

Direct: 815.277.4036    Cell/Text: 708.921.6331    Skype: 630.219.1316

Email: gene@chicagobancorp.com    Website: www.genemundt.com

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