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Tampa, Florida News: HARP 3.0 Disguised as the Responsible Homeowner Refinancing Act of 2012?

June 24, 2013


HARP and its revisions have been helping out homeowners numbering a million since 2009. The lofty goal of helping 7 million homeowners is still far from realized but the bar has been set higher. Now another revision dubbed HARP 3.0 is estimated to benefit 30 million borrowers.

On May 10, 2012 a bill was introduced by the US senate and was dubbed as the “Responsible Homeowner Refinancing Act of 2012” in which several mortgage lenders are referring to as HARP 3.0.  With the Responsible Homeowner Refinancing Act of 2012, Tampa, Florida homeowners can expect to have the refinancing process for underwater homeowners more streamlined and cheaper for mortgage held by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.

Check My Florida Harp 2.0 Eligibility

Currently it’s difficult for the borrower to refinance with a new lender without being scrutinized with stricter underwriting guidelines because of the way the lenders have set-up the underwriting criteria. This doesn’t favor borrowers as it usually results in higher costs with less desirable terms for borrowers. With the Responsible Homeowner Refinancing Act, the GSEs would be compelled to equalize the guidelines between their current lender to the new lender.

Under the revised bill guidelines, all borrowers who have been paying their mortgage payments on time will be able to refinance. Borrowers who are above 80 percent loan-to-value will qualify for the program or and won’t be paying more in fees. Borrowers who have a Freddie Mac or Fannie Mae loan can equally experience the benefits of the new bill.

All upfront fees including loan level price adjustments which raises that rate a borrower is qualified for based on credit, LTV, income and other factors usually taken into consideration when applying for a new home mortgage have been waived which then gives borrowers more financial freedom.

Check My Florida Harp 2.0 Eligibility

With the new bill, manual appraisal requirements have been waived. The program would not require an appraisal if the enterprises automated valuation model is able to determine a value for the home.  If for whatever reason a value cannot be determined, the enterprises would shoulder all the costs associated with a manual appraisal of the property and will not be able to pass on the cost to the borrower or lender.

The new bill will eliminate the need to provide proof of employment and income verification if the borrower is already current on their loan; streamlining the process for both borrower and lender.

Another great thing about the new bill is that it reduces the default rates of existing GSE loans thus saving money for taxpayers.

For those homeowners who currently have a 2nd mortgage which would need to be subordinated under the Responsible Homeowners Refinance Act of 2012, there is good news. Second lien holders who unreasonably block a refinance will be required to pay restitution to taxpayers. The same penalties and restrictions would be placed on Private Mortgage Insurance Companies that don’t transfer Private Mortgage Insurance coverage to a new lender.

The Responsible Homeowner Refinance Act of 2012 still has the same basic guidelines to qualify for it. It’s still the same as that of HARP 2.0:

  • A homeowner must be current on their mortgage with no late payments in the last 6 months and have only 1 late payment from months 7 through 12.
  • The current mortgage must also be owned or guaranteed by Fannie Mae or Freddie Mac, and must have been guaranteed on or before May 31st, 2010.

The Responsible Homeowner Refinance Act of 2012 will allow Homeowners to qualify no matter how underwater they are but we might still see some of the same issues regarding banks making up their own overlays as we have seen with the HARP 2.0 initiative. Overlays will still make it a difficult process for homeowners and leave several homeowners out of the program.

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Chris Brown
Chris Brown is the premier expert on HARP loans and Government FHA and VA loans. Please visit The Mortgage Chili Blog
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Upside down? Call Chris Brown. 321.300.loan [5626] FHA Streamline Refinances - www.FloridaStreamlineRefinance.com Harp Refinances - www.FloridaHarpGuide.com Harp 3 Inquiries - www.budurl.com/Harp3 Purchase Pre-Qualification - www.FreeScenarioReview.com

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Chris Brown
Chris Brown is the premier expert on HARP loans and Government FHA and VA loans. Please visit The Mortgage Chili Blog