The details of the Making Home Affordable Plan were recently released. There are 3 key components:
1. The Home Affordable Refinance Program. Homeowners who have loans owned or backed by Fannie Mae or Freddie Mac (GSEs) may be able to refinance, depending on the value of their homes. The program can help homeowners who occupy their homes and are current in making loan payments and have loan-to-value ratios (LTVs) between 80 percent and 105 percent.
2. The Home Affordable Modification Program. This program is for homeowners who occupy their homes and are in default or at risk of default. The loan amount must be at or below the maximum conforming loan limit of $729,750. It is a $75 billion program with lender, servicer, investor, and borrower incentives to make it work.
3. More Support for the GSEs. This includes doubling of potential Treasury investment from $100 billion to $200 billion for each GSE, to maintain their positive net worth. The plan also raises the cap on mortgages that the GSEs may hold in their portfolios by $50 billion to $900 billion.
- The writers of The Mortgage Reports have created an exhaustive guide on the HARP / Making Home Affordable Program with hundred’s of FAQ’s. I hope you find it useful:
HARP Loan Program : Eligibility & Guidelines for 2016: http://themortgagereports.com/