HARP II IS OFFICIALLY HERE. NOT SO FAST
The new HARP II program was officially implemented on December 1st, 2011. The HARP II program will allow homeowners that currently have a Fannie Mae or Freddie Mac guaranteed loan originated prior to June 1st, 2009, to refinance at a lower rate with no restrictions on loan to value. In laymen’s terms, no appraisal needed. Regardless of how upside down you currently are, you may still be able to refinance. This program may help up to 12 million homeowners who are upside down and on time with their payments.
Despite the fact this is the biggest change in lending guidelines, which will actually help people, maybe ever, the celebration is on hold. Fannie Mae and Freddie Mac, while currently recognizing the new changes HARP II brings, does not have the ability to perform the automated underwriting required. Their automated underwriting engines will not be updated until March, 2012.
Lenders, prior to March, do have the option to “manually” underwrite the loans, which would increase underwriting timelines and risk for the lender. At this time, no lenders have announced that they will accept HARP II loans for manual underwrites. We will keep you posted if that changes. We are anticipating taking full loan applications for the HARP II program in February.
HARP I is currently available. Below is a brief outline of the HARP I and HARP II programs.
HARP I (Available Now)
- Appraisal Required. Note: Appraisal waivers are common, so value may not be an issue.
- Maximum Loan to Value: 125%
- Maximum Combined Loan to Value: Unlimited
- Occupancy: Owner Occupied / Non Owner / 2nd Home
- No late payments in the last 6 months and no more than one late payment in the last 12 months.
- Loan must be guaranteed by Fannie Mae or Freddie Mac.
- No cash out.
- If there is a 2nd mortgage, 2nd mortgage lender must agree to subordinate.
- Loan must have been originated prior to June 1st, 2009.
- The interest rates are based on credit and loan to value.
- Pricing has improved since December 1st.
HARP II (Available on or before March 2012)
- No Appraisal
- Maximum Loan to Value: Unlimited
- Maximum Combined Loan to Value: Unlimited
- Occupancy: Owner Occupied / Non Owner / 2nd Home
- No late payments in the last 6 months and no more than one late payment in the last 12 months.
- Loan must be guaranteed by Fannie Mae or Freddie Mac.
- No cash out.
- If there is a 2nd mortgage, 2nd mortgage lender must agree to subordinate.
- Loan must have been originated prior to June 1st, 2009.
Please contact me if you want to see if you can take advantage of the HARP I or HARP II programs. (CHRISTILLER@BRETT-TANNER.COM 602-561-1346)
Important Notice: If your zip code has changed since the mortgage has been originated, please disclose this at time of application as Fannie Mae and Freddie Mac may not recognize the new zip code.
THE HIGHEST RISK LOANS STILL GENERATE THE LARGEST PROFITS
“Ginnie Mae reported $1.18 billion in net income for the fiscal year 2011, more than double the $541 million the year before. Ginnie guarantees timely payment of principal of interest on securities backed primarily by Federal Housing Administration (FHA) and Veterans Affairs (VA) loans.”
"Ginnie Mae has had a remarkable year; it’s our best yet," said Ginnie President Ted Tozer. "Our financial performance this fiscal year – despite a mortgage market still in turmoil – is a testament to our well-functioning business model.”
“Combined with Fannie Mae and Freddie Mac, the government backs roughly 95% of all home loans.” (housingwire.com)
HOME SALES CONTINUE TO RALLY IN PHOENIX MARKET
Home sales in the Phoenix Metropolitan market increased nearly 18% in September from this time last year. 8,661 homes were sold in the month of September. The median home price was $124,500; off 52.9% from the peak median price of $264,000 in June 2006. (housingwire.com)
BETTING ON VEGAS HOUSING MARKET
The Vegas housing market is down 60% from the peak in 2006. Many analysts anticipate an additional decline of home prices over the next year. But even with all of the negative attention the Vegas housing market has received over the past several years, it is poised for a big comeback.
“Home sales, especially of bank repossessions, have picked up significantly. Nearly 36,000 homes have been sold so far this year through September 30, an 11% increase compared with the same period in 2010, according to Lawrence Yun, chief economist for the National Association of Realtors. As a result, inventory of both new and existing homes has shrunk significantly over the past year. Currently, there are about 10,000 single-family homes on the market, according to David Tina, general manager of Realty One Group, a Las Vegas real estate broker. With the current sales pace near 5,000 units per month, that's just a two-month supply. Typically, those are inventories seen in extremely healthy markets.” (cnnfn.com)
PORTLAND HOUSING MARKET HAS A PULSE
“September home sales in the greater Portland, Ore., area rose 10.2% from a year earlier, with 2,296 new and resale homes recorded in the five-county region that encompasses Portland and surrounding communities, DataQuick said Tuesday. In September, distressed property sales accounted for 31% of the Portland area's resale market. Foreclosure resales represented 17.2% of September sales, while short sales accounted for 13.9% of the resale market in September.” (housingwire.com)
FREDDIE MAC REO PROPERTIES FOR 15 YEARS
At the end of the third quarter, Freddie Mac held 60,000 REO properties on its books. Freddie Mac currently reduces its net supply of properties by approximately 1,000 units per quarter. At the rate, Freddie Mac will clear its inventory in 15 years. (housingwire.com)
Chris Tiller - Realtor
The Brett Tanner Team
Keller Williams Realty
4862 E. Baseline Road #103
Mesa, AZ 85206
Phone: 602-561-1346
Fax: 1-888-292-0678
Website: www.phxrealty.com
Blog: http://tillersreupdate.blogspot.com/
No comments:
Post a Comment