I received some information today that I found very disheartening. The HARP (Home Affordable Refinance Program) is a program designed to help homeowners either modify the terms of their loan or refinance with new programs designed to help homeowners who have good credit and payment but lack the equity needed for a traditional refinance.
I’ve read pretty extensively on the guidelines for this program. I’ve used it for a few clients and have even blogged about the Fannie Mae version of it (labeled the Fannie Mae DU Refi Plus).
One guideline states that if the loan currently has mortgage insurance, only the existing servicer can refinance on a HARP loan.
One of my previous clients has a Fannie Mae loan with mortgage insurance through Bank of America Home Loans with mortgage insurance. When he called me about refinancing, I knew I would not be able to do it because I could not go through the existing servicer. I told him to contact Bank of America directly.
I then found out that Bank of America does not do the HARP loans for loans with mortgage insurance INCLUDING if it’s their loan. Per the HARP loan program, they can do this refinance, but according to the loan officer, Bank of America will not do it.
Bank of America in 2008 was the a top 5 lender and had purchased Countrywide who was the largest lender in the nation. To hear that they were not offering the HARP loan to their existing clients with mortgage insurance was very disturbing.
Now, I don’t want to say they’re not doing it only on the information given from one loan officer, but he seemed intelligent and knowledgeable.
The tax payers are entrusting our government to use our funds wisely. The government has created a loan program specifically designed to help these homeowners yet the largest lender in the nation isn’t offering it in the full capacity that it is available.
If anyone hear’s more information on this, please contact me and let me know.
UPDATE:
I’ve been working very closely with colleagues, my mortgage product specialist and underwriting manager to come up with an extensive guide for clients who are considering a HARP refinance. Three months in the making and the post is finally complete.
You can read all the details and alternatives to HARP on this related blog post:
http://www.keaneloans.com/2009/12/18/homeowners-guide-to-harp/
RELATED POSTS
December 4, 2009
Just saw this article. I spoke with B of A yesterday because I had been turned down by another lender in May 2009 because the loan had lender paid mortgage insurance placed on it. I had no knowledge of this. Anyway, B of A says the loan DOES NOT have any evidence of mortgage insurance on it. They took my application for a HARP–quoting what I think is a high 5.75% 30 yr fixed rate. The loan officer told me the only lender that can refi under the HARP is the current lender–even without the mortgage insurance issue.
How does a person REALLY tell if the loan has mortgage insurance on it?
Thank you.
There may be provisions where you won’t qualify for a HARP loan if your current loan had Lender paid mortgage insurance. T
If your loan did not have mortgage insurance, you can probably get a loan from any HARP lender. Is your loan owned by Fannie Mae or Freddie Mac?
My loan is owned by Fannie Mae.
P Spear,
Here’s how to find out. The loan officer at B of A may or may not know the process of finding out if your loan has mortgage insurance. Lender Paid Mortgage Insurance will not show on any items initially collected for the loan application.
Whenever a lender underwrites a Fannie Mae loan, they use a software program issued by Fannie Mae called Desktop Underwriter (Also called DU). I won’t go into all the details of this, but this program basically tells the underwriter whether or not the borrower qualifies for a Fannie Mae loan. A term often used for running a customer’s application through Desktop Underwriter is “Running DU”. You can shock the heck out of your loan officer by asking, “Did you run DU? What were the findings?”
If a loan has no signs of mortgage insurance, there’s still a chance the customer had a loan with Lender Paid Mortgage Insurance (also called LPMI). Fannie Mae keeps track of loans that have LPMI in their system. When the lender runs DU for a DU Refi Plus (Fannie Mae’s version of the HARP loan), it will tell the lender if the borrower had lender paid mortgage insurance or not. If it comes on the findings, the customer does not qualify OR must go through their existing servicer, which I have not heard of any existing servicer’s doing HARP refinances with mortgage insurance (yet).
I am also dealing with Bank of America. They have no interest in helping customers. They refused to refinance me through HARP even though I qualify per the FHA website. Their reason was the MI on my loan. I would love to find out who the MI is through. Bank of America doesn’t care if any of there homeowner properites with MI default because they are covered by the mortgage insurance. The government should have let BOA go broke, they stink. By the way the current rate for a 30 year fixed under HARP is 4.5%. BOA is ripping you off.
Peter,
That is what boggled my mind when I wrote this post. They’re already the servicer, why will they not do it? My guess is the PMI company needs to issue a new PMI policy and does not want to, even though they’re already on the loan.
The whole idea of this loan program is to help people LOWER THEIR PAYMENTS. If the PMI company wanted to create guidelines stricter than the Fannie, why wouldn’t they? Just insure the thing…It’s already insured by the company, so if anything, it LOWERS their risk.
The thing is B of A DOES offer it on non-PMI loans which says they’re willing to take the risk. If anything, those are MORE risky. I’m pretty sure it’s the PMI companies, not B of A.
As for rates, HARP Refinances have similar rates as regular Fannie Mae 30 year rates up to 95% LTV but higher if above that point. Earlier this week, 4.5% up to 95% Loan-to-value was available but rates did move up since then, so it is higher now. However, 5.75% still sounds high as Peter eluded.
I just tried a HARP refinance with IndyMac Bank (OneWest Bank) and I was denied for the same reason, because I have lender paid PMI. Even though they are the same provider I already have for my current mortgage, I cannot refinance! How ridiculous! I would really like to thank Obama, or the whoever is responsible for writing this stupid program for NOT new homeowners in my position.
Now I’m stuck in an interest only 7.29%/Adj rate loan that is at 115% loan to value and the bank say’s there is nothing they can do at this time..
What’s the next step?? wait? who to contact???
correction- “for NOT including new homeowners in my position”
Keith,
Actually, I think the real problem here is the Mortgage Insurance companies.
I was originally a little baffled as to why a company like Bank of America would not do this loan because it had mortgage insurance. Let’s review what we do know.
Fannie Mae will allow a lender to refinance a house with less than 20% equity with NO mortgage insurance up to 105% (125% on new guidelines not yet released for most lenders) without requiring new mortgage insurance. For the lenders, they originate a loan and sell it to Fannie Mae.
The process is the same for loans that HAVE mortgage insurance but Fannie Mae requires that the customer go through their existing servicer.
The reason why Fannie Mae does not require mortgage insurance on new loans is because they are already at a lower equity position. They figure their risk is there regardless, so they may as well help borrowers lower their payments.
The servicers, like Bank of America, are in a similar position. They run the risk of losing money if the borrower defaults on the loan. They figure if they’re lowering the rate and payment, they would be at less risk.
Now, it gets a little messy when mortgage insurance companies are involved. Remember that PMI is issued by a different company than the lender. The policy is attached to a particular loan. When you refinance it, regardless of who the lender is, the PMI company must issue a NEW policy ofr the new loan.
Fannie Mae and the government designed the loan with the common sense that even though there is risk in refinancing a loan with little to no equity, they are not worsening their position if the client is lowering their payments and if anything, are HELPING Fannie Mae and the servicer avoid default.
However, the servicer has insurance from a PMI company protecting part of their assets on the existing loan. They need the PMI company to take the same position as Fannie Mae, which is take on the risk of the loan because since you already have the risk, there’s nothing to lose.
What we’re talking about is creating a loan that nobody would ever do under normal circumstances, but makes sense under current market conditions.
PMI is really a form of insurance, which like loans has underwriting guidelines also. We’re also asking the insurance cmpany to create a special policy guideline so they’ll issue an insurance policy on a loan they normallyu would never do, but should under these market conditions.
I don’t know for sure if this is the reason why the lenders won’t do it, but from a logistics stand point, there is no reason why a lender would NOT do it unless they were losing the only insurance policy they have protecting their assets. It makes sense to me that the lenders won’t do it because they can’t keep the PMI policy. I may be wrong, but this is the only thing I can think of. Two sets of red tape to get around. We’ve passed one, but need to pass the other. Loans that did not have PMI only need Fannie Mae to approve the loan for the lender to close.
If it is the case, it’s time for the PMI companies to wake up and make changes. They will only see further losses if they do not help the homeowners.
I would like to find out if this is the cause. It would probably make another great blog post.
This really fries me… I was just contacted by a home owner who’s been strung along by a BOA LO for 10 months now on a DUPlus… she has mi… I told her that she has to go directly to BOA just yesterday and to try to find a manager who might be more forthcoming than who ever has been wasting their time.
The press really needs to pick up this story and (of topic, my apologies) all the stranded Taylor Bean 203k’s.
Rhonda,
Thanks for visiting! It’s good to hear from you.
Yes, I’ve been talking more with our secondary market about the complications related to existing MI on the DU Refi Plus.
I brokered a loan to Bank of America over a year ago to a client. When he called about doing a HARP refinance, I sent him back to B of A retail due to the fact he had MI. That’s when I first found out they wouldn’t do it.
Now the word on the street is ALL existing servicers won’t do it. So when a client has MI, they really don’t have ANY options other than a modification, which not all borrowers are in hardship.
Keane,
I just tried to do a HARP refi with BofA and my application was denied due to “Fannie Mae not being the original purchaser of my loan in the secondary market. Even though Fannie owns the loan now, Fannie Mae had to purchase the loan originally in the secondary market in order to qualify.” This seems like the onus is just too great to qualify.
I also have my loan with BOA. I talked to them several time since 03/2009 and again a week ago and today. Here is my story
1st call. – Rep ay that Phase 2 of HARP (loan with PMI ha not rolled out). I know its not true. I mention how the media jut released the report that they have made the least amount of modifications in the HAMP side, and I wondered if there were placing the same disregard to the HARP side. I also mentioned how they got out taxpayer money. The guy said the bank had just repaid the money back a few days ago. I knew that was true, but told him the program will still be in effect until next year, so like it or not, the Bank has to be part of the federal program. They guy hung up.
2nd call. – I asked to talk to someone who will have more specific knowledge of the program. The rep now aid that Phase too had just been implemented according to an email he received as of 12.09.09. Another lie since it has been in place since 09/2009. He did have knowledge of the “pilot program” under this phase 2 and transferred me to a 3rd rep that does appear to be very involved in the HARP side. He said that they are doing refinance with PMI but only to 105% and the federal program it’s the one who has not implemented the up to 125% system. I didn’t have info handy to state the contrary, but then I found the info about the DU REFI Plus manually underwriting procedure and called the Making Home Aff Program directly.
3rd call. – Rep at MHAP aid the program has been implemented and that BOA should be able to refinance loan with PMI and up to 125%. He also emailed me the Memo from Fannie Mae stating the new procedure.
4th call. – I tried to contact the same Rep I talked on lat Friday at BOA. she is not available until Monday. Talked to another Rep. I mentioned the info I got from MHAP and he said plain outright: BOA ha not implemented that portion of the HARP since like any other software and programs they are still working to fix the kink the program has now and it harder since there are a lot of sides that need to agree . Don’t know what he meant by that. He asked to try to follow up 3 to 6 month from now. I said that by then the rate would have gone up as they have doing so since two weeks ago. He said I have the right to call again to follow up and the most he could now its write my name down to be able to contact me once the product gets offered by BOA. I told him that I just want sure on what to believe now since the program it tell me differently and the media has mentioned how BOA has failed to assist homeowners in the modification program. He just told me not to believe the media so much.
All I sense from this is that they are purposely delaying everything since the Treaury no longer has any leverage against BOA and waiting in the meantime for rates to go back up.
I have been trying to modify my indymac loan for over 1 yr. and have contacted them directly wanted to refinance through the HARP program. I was told that they do not offer the program for loans backed by Freddie Mac, and all other lenders tell me we can not refinance outside our lender as we have to go through them under the HARP. All signals are mixed up….and I have interest only loans with upcoming ARM adjustments. One of the loans is at 9.75%!!! There just seems to be no help out there for struggling homeowners!!
Nicole,
Does your current loan have mortgage insurance? You do not have to do your HARP refinance through Indymac if it does not have mortgage insurance and there is a HARP program for Freddie Mac finally. It’s called “Open Access”. Remember that there is a difference between HAMP and HARP. HAMP is a modification where HARP is a regular refinance loan. HAMP does require you work with Indymac.
See if you qualify for a HARP refinance, which you can read more about on my blog:
http://www.keaneloans.com/2009/12/18/homeowners-guide-to-harp/
Good luck and let us know how it works out for you.
Keane
chase will not finance under harp because wamu classified my loan as low-doc.
did not know wamu qualified my loan as loc-doc
Stacey,
Is your loan a Fannie Mae or Freddie Mac loan? Whether your original loan was low-doc or not shouldn’t make a difference. The new HARP refinance is a full-doc loan and all of the risk is associated with new documentation, not old.
“If a loan has no signs of mortgage insurance, there’s still a chance the customer had a loan with Lender Paid Mortgage Insurance (also called LPMI). Fannie Mae keeps track of loans that have LPMI in their system. When the lender runs DU for a DU Refi Plus (Fannie Mae’s version of the HARP loan), it will tell the lender if the borrower had lender paid mortgage insurance or not. If it comes on the findings, the customer does not qualify OR must go through their existing servicer, which I have not heard of any existing servicer’s doing HARP refinances with mortgage insurance (yet).”
Can you please advise if these steps are to be taken BEFORE an appraisal is ordered?
Thank you!
Jeannine,
When the appraisal is ordered is determined by the lender. They lender SHOULD check before ordering but it could happen that the lender didn’t do the proper research before ordering the appraisal.
Keane
So I have been working with Chase trying to get into the HARP program. I have a Fannie loan, but have been told I have a low-doc loan, so they cannot do it. They also told me “internal reasons.” I have tried to get them to explain, but have only gotten people mad who eventually hang up on me. I assume because I ask too many questions.
So can anyone tell me why Chase would not do this? I do have PMI on my loan which is a 30 year fixed. I am under the 125% required by the HARP program. As stated in comments above lowering my interest rate will only lower their risk as the payment would be easier to make. I have never missed a payment, never been late, and have great credit. My only issue is I cannot refi because my house value has dropped due to the foreclosures (not my fault cause I pay my loan).
Is the reason Chase will not do my loan in the HARP program because I have PMI on my loan? Or could there be “internal reasons,” or document issues? My personal thought is they don’t want to do it because they will make less interest therefore less money. Chase has been VERY rude everytime I have falled. I have also contacted Fannie Mae to see if they could tell me why Chase says they cannot do it. Fannie Mae said they could not see why I wouldn’t qualify, so they escalated my call to a “level 2″ and I am suppose to get a call back. I will be shocked if I receive that call.
Jeremy,
As strange as it sounds, Chase would MAKE money doing your refinance.
Fannie Mae and Freddie Mac loans are sold for a profit. If they did a HARP refinance, they would be able to collect fees at closing and sell a new loan to Fannie Mae or Freddie Mac, so it’s not for profit purposes. Fannie Mae and Freddie Mac are the ones who collect the interest. Without getting into too many details, this is not the reason they won’t do it.
However, many lenders have not adopted the 125% loan-to-value guideline. This may be the problem. Also, there have been complexities with doing these loans with PMI. It’s either one of these two things or both in my opinion.
Unfortunately, the loan officers you’ve been talking to obviously don’t have the answers for you. Hanging up on you doesn’t seem like a good answer, but lots of questions should not be the reason for hanging up. As loan professionals, our job is to ANSWER the questions of homeowners. If no answers were needed, we wouldn’t have a job. Our job is to answer questions for consumers. Just my two cents.
-Keane
Another thought. I understand the reason behind MI, but isn’t the HARP program backed by our government? If so, why does the loan still need MI? Cause wouldn’t then the loan be backed by the government and the MI company?
I have issues with the MI (though it would be nice not to have), but I would be happy with a lower interest rate. Something close to 5% instead of almost 7%.
The reason why MI is so vital is because the LOAN is backed by the government but the INSURANCE is backed by a private company. The private mortgage insurance company is a true, non-government controlled entity. The issues are probably related to the PMI company not wanting to issue a new policy (even though it doesn’t worsen their position) or elevated risks on the lender’s behalf.
-Keane
Correction……I have NO issues with MI.
Jeremy,
I’m having the EXACT same problem with Chase (and with almost the exact same rate as you). Do you think we can take this conversation offline? Maybe if we can share some info we can get something done.
My email address is hockeyman8989@yahoo.com
Mike,
I’d be happy to be included in those emails as well to help.
Keane
keane@keaneloans.com
Keane,
Thanks for your reply. The 125% is not the issue, because that is the one question Chase did answer. They will do the 125% loan (or less obviously). PMI is my thought, but since they wont give me details I really have no idea.
So I talked with a local Chase rep to see if I could get a better idea of why I don’t qualify for the HARP program. The rep didn’t see why I wouldn’t, so he tried multiple ways to enter my info into the Fannie May “DU” software and it always came up denied for approval. The reason being debt to income ratio. However the local Chase rep along with myself don’t understand this. With all my payments included I was only at 40% of my income which he says should work. He even tried to wipe out my debt (car and small student loan) to show I only have the house which then brought it down to just under 30%.
Long story short he tried, but says there must be something else on the loan from when it was originally done that is sending up the flag. He beleives it has nothing to do with my debt to income as he has seen them approved all the way up to 80%. Basically again I am at the same point with no answers. The rep told me to call him back once a month until the program ends to see if he can get a different result. He doesn’t know why (or so he says) but tells me he has had issues with others in the past and then all of a sudden one day it will work. I am still fully confused and frustrated………………
Jeremy,
You’re correct in that there’s something DU does not like. 30% debt ratio is not the problem.
Can you obtain a copy of the DU Findings?
Keane,
I cannot for whatever reason get a copy of the DU findings. The local Chase rep seems not to understand it either. He is going to try again next month, but for whatever reason no matter what he does right now it says its a debt ratio issue. He thinks it just defaults to that as an error, but is not sure why.
Jeremy,
It’s trial and error on the address my friend. Do everything you can to enter the address in different variations.
For example, I had a file where the loan was clearly a Fannie loan. It said so on the credit report.
The property lookup tool had the address saved WITHOUT A SPACE between the house number and street name. This verified it was a Fannie loan. We re-enter the address in DU and still no Refi Plus findings. We then spelled out the street name and kept the address without the space, voila, DU Findings work.
This is why it’s so important to research and research over and over again on the address before giving up. See my post “Homeowners Guide to HARP” to see all the recommendations I made. I seriously think that half of the customers applying for a HARP refinance are being turned down when they could qualify.
JPMorgan/Chase told me I was a low doc and they would not refinance me under the
Presidents Plan, I tried to work with Chase, but they kept stalling, each time a different answer. When the Open Acccess was available, I called Freddie Mac for a participating list, and Freddie Mac told me to call each lender. A broker called me, and the broker check
the status of my Freddie Mac and showed me I was eligible for any of the loan programs.
Chase just wanted the money. With a credit score greater than 750 and my house appraised at 400k, with a balance of 284K, I went with MetLife and paid Chase off. I got more calls the last fews days before settlement and after from Chase waiting to talk, must have been that payoff request that got there attention. My original loan was WAMU, and Chase said WAMU coded the loan as low doc, that is BS. My money will no longer be supporting Chase, I even cancelled any credit cards backed by JPMorgan.
I called BoA again today – still not doing HARP refi for PMI customers.
Dave,
At least they’re subordinating their second mortgages when the homeowner is doing a HARP loan on the first. Every major bank (that I know of) has begun subordinating their second mortgages to allow homeowners to refinance their first mortgage EXCEPT Key Bank:
http://www.keaneloans.com/2010/03/22/harp-loans-with-a-second-mortgage-not-if-your-second-mortgage-is-with-key-bank/
Now that we’re officially 1 year into HARP with a 1-year extension, maybe we can get lenders to do HARP with PMI and subordinating all second mortgages before May. This would give homeowners at least one year to attempt a refinance that they SHOULD’VE QUALIFIED FOR A YEAR AGO!
Sorry, I get so angry about this.
Keane
Re: my last post- I talked to my mortgage insurance company (PMI co.) and are in total cooperation with creating new policy’s for these loans, the forms and such are all very clearly posted on the web for anyone to see.
Keith,
Yes, most PMI companies are fine reissuing the policies. Some lenders are starting to do these refinances now, but Bank of America still is not.
The last I heard, Wells Fargo and Flagstar will do a HARP refinance with PMI if it’s their loan.
Keane,
I have been around the entire western division of BofA chewing my way through levels of managers until I get to “Regional Vice Presidents” and I find it so frustrating that I am told I am not eligible for the MHA act because I have lender paid MI. So under my own research I send them this
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0920.pdf
And suddenly now I am eligible, but BofA is choosing not to do LPMI because their systems are not setup to be able to process them.
I actually have a letter into my congressman to address this specific issue because I agree completely, BofA being one of the largest lenders in the company too many people are falling through the cracks on this one. And until we can get the system fixed to get the MI companies on board and make these happen this is just lip service.
Just like usual you have presented several great info. Been lurking on the webpage for a time and needed to thank you for making the effort to create it.
Keane,
I’m in a similar situation as many of your posters. I have a loan through Chase Home Finance with LPMI. I’m currently at 6.75%, and would love to refinance in order to take advantage of the current low rates. However, I have repeatedly been told through Chase and independent mortgage consultants that I have to refinance through my original lender, which is Chase, but that Chase will not offer HARP loans if your existing loan has LPMI. I’m falling through the cracks here.
Now, to make matters more complicated, I received a letter today from Chase Home Finance that my loan is being reassigned to IBM Lender Business Processing Services (LBPS) as of August 1. However, LBPS does not offer refinance or lending services. What am I supposed to do about refinancing under this new arrangement…if my current lender doesn’t even lend on new loans?
Brad,
Hopefully a solution will come soon for you. PMI companies are re-issuing PMI certificates with new lenders and hopefully enough complaints can push lenders to re-do mortgages with PMI. Your situation is a common one.
What is your approximate value vs. your loan balance?
Keane,
My loan balance is $247K and the last county appraisal was placed the market value at $245K. I’m not sure how accurate or close that would be to a private appraisal; I’ve found that county appraisals tend to be a little lower than market. When I purchased the new condo about 2 years ago, the appraisal was $257K. The physical condition of the unit has only improved since then, but I also know that market conditions have changed slightly.
BTW, will IBM LBPS be considered my “new lender” when the loan is reassigned? If so, how do the HARP requirements of using the “current lender” affect me?
Thanks,
Brad
Brad,
I’m seeing more PMI companies state they will re-issue existing PMI certificates on HARP loans, so I’m hopeful that you do not need to go through your existing lender in time but that’s just a hunch.
If I were you, I wouldn’t wait. HARP will make you pay PMI anyways and a HARP loan over 95% has a higher rate. I would do a no-fee FHA loan which you should be able to get at 97.15-97.75% of your home value. Rates would be in the mid-low 4′s. I would also have an unsecured loan or 401k loan on the side to cover any difference between the appraised value and the loan amount. If you wait too long, values may drop further and this option may look less feasible.
Key Bank has unsecured lines of credit up to $30k. Even a good sized credit card would do the trick. You would save so much money on the mortgage that paying off that small/second loan would take no time at all going from 6.75% to the rates available today.
I’ve estimated your current payment without taxes and insurance would be about $1667. A FHA loan at 4.5% WITH the monthly MI is $1353. That’s $314 less a month. You would need about $10k to cover the pricnipal difference and money to start a new escrow account (unless you had cash to pay this). At a 7.5% unsecured line of credit, that payment would be $50-100. You would skip one mortgage payment and get an escrow refund of what was in your old account, which you could use to pay down this line in 2 months to about half.
Options like this are not available to homeowners who are heavily upside down in their equity, but it’s something that may be available to you. I wouldn’t pass on it. Be sure to keep enough money available to cover a larger difference in appraised value just in case the appraisal comes lower.
I just called BOFA about refinance under HARP and they said they can do it BUT my loan to value should not be more than 105%. My mortgage is PMI insured (Fannie Mae owned) and loan to value is approximately 110%, so I have to come up with additional amount to cover 5%. When I asked them about new HARP update regarding 125% they said it does not apply to me because I have PMI. They quoted me a rate of 5.375% with zero points (approximately $4400 in total closing costs) – 256K total loan. After asking for lower rate they quoted 4.5% with 2.875 points, which seems to high for me ($10500 in total closing costs). Would I be able to refinance with different lender if I have PMI and my mortgage owned by Fannie Mae?
Thanks.
4.5% with 2.875 points is super high.
Check this site: http://www.hfamerica.com
I’ve done a refinance through them and they’re great to work with.
Dand,
You’re correct, that cost is high, but Oleg doesn’t have another option. No company, including the one you referenced, can refinance his loan on HARP with PMI other than Bank of America. Did you have a PMI loan refinanced on HARP through the company you referenced? If so, that would be news worth sharing since I haven’t seen anybody who will touch these.
Oleg,
Please let us know if they allow you to close under a PMI HARP loan. The pricing is high but it’s your only option since you have PMI, so I would take it if I were you and it made sense financially.
I am still trying to shop around. I knew they are trying to overcharge me. I just called PMI company (I am insured with them) and they said that I can refinance under HARP with any lender – they support this move (it is even says on their website). I am really confused…
Keane and Dand,
Thank you for your help
Oleg,
Yes, and HARP doesn’t restrict you to only use your lender now but the only confirmed/approved PMI HARP loans I’ve heard of were Wells Fargo and Flagstar Bank, which they only did their own loans they serviced. I have another customer who found a lender who states they can do them but I haven’t confirmed a closed client. Too many times I hear somebody will do it but they won’t.
I really hope you’re right! This is the last major hurdle in HARP.
Skank of America is the sleeziest bank in the world! I have a mortgage with them that is $100,000 underwater due to the economy. I applied for HARP 3 months ago and no one will get back to me! In the meantime, Skank of America reduced the line of credit on my credit card (was $40,000 for 8 years). They limited my line of credit to the amount I owed $1100.00!!!!!! Because of their sleezy tactics, I am not paying my credit card or mortgage, and will live free in my house for 1 year until they foreclose and lose over $150,000!!!! I guess it is worth ruining my credit. I’ll just rent at the beach! NEVER do business with Skank of America!
Keane,
I just confirmed with a friend of mine (did two mortgages with him) – they can not do refinance under HARP if you have PMI. You have to go ONLY through your servicer/lender. Please keep us informed if you get some information regarding refinance with PMI. I hope in September administration will come up with some better ideas taking into account that home sales at their lowest number (today’s number). On the other hand, BOA is really trying to screw me with closing costs.