Sanders and I am the Distinguished Professor of Finance at George Mason and a Senior Scholar at the Mercatus Center. Only existing Fannie Mae mortgages may be refinanced into a HIRO loan.Senator Menendez and distinguished members of the Committee, my name is Dr. Freddie Mac started the Enhanced Relief Refinance (FMERR) program at the same. When passed, HARP 3.0 could help homeowners with Jumbo Mortgages, hard hit by declining. HARP 3.0 is rumored to remove the Fannie Mae/Freddie Mac requirement however, without incentives to encourage further lender participation the programs reach may remain limited. Fannie Mae or Freddie Mac must have acquired your loan prior to June 1st, 2009.The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.Even so, I would encourage a detailed examination of the projected benefits to consumers and costs to American taxpayers of these proposed changes by FHFA, the Congressional Budget Office and The Federal Reserve Board before you proceed. The mortgage must have closed on or before May 31, 2009. This proposal would remove the safeguards from HARP and encourage more refinancing by borrowers.The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae. Hence, fewer borrowers are able to refinance their mortgages. The expansion represents changes in HARP that eliminates Loan Level Price Adjustments (LLPAs), eliminates representations and warrants for cross servicer refinancing and appraisal streamlining and orders Fannie Mae and Freddie Mac to contact borrowers directly about HARP opportunities.The HARP Refinance Program is open to homeowners with mortgages owned or guaranteed by Fannie Mae or Freddie Mac and who obtained their mortgage loans prior.While Fannie Mae and Freddie Mac still require a traditional appraisal for the majority of their loan purchase programs, under the new rules homebuyers who make a down payment greater than 20 of the sales price and have good credit will no longer have to pay for an appraisal, which could save them more than 500 in closing costs.It can be argued that Fannie Mae and Freddie Mac are resisting loan modification to protect their retained portfolios. To ensure that high LTV borrowers who are eligible for HARP program continue to have a refinance option the Federal Housing Agency (FHFA) launched a new program: Freddie Mac Enhanced Relief Refinance (FMERR) This program is essentially an extension of HARP but with different names and slightly different requirements.The proposal to be discussed at this hearing is the expansion of affordable refinancing of mortgages held by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.
Qualify For Harp Program Without Mortgage By Fannie Mae Or Freddie Mac Started TheIt will simply unleash more taxpayer-eating dinosaurs on the economy.THE 14 FEDERAL GOVERNMENT LOAN MODIFICATION PROGRAMSThere are currently 14 Federal government loan modification programs:Home Affordable Modification Program (HAMP)FHA Home Affordable Modification Program (FHA-HAMP) USDA’s Special Loan Servicing Veteran’s Affairs Home Affordable Modification (VA-HAMP) Home Affordable Unemployment Program (UP)FHA Refinance for Borrowers in Negative Equity (FHA Short Refinance) Treasury/FHA Second Lien Program (FHA2LP)Home Affordable Foreclosure Alternatives (HAFA)Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (HHF) Attorneys General Settlement for Mortgage Servicers (AGS)We anxiously await the results on HARP 2.0 and the Attorneys General Settlement has yet to kick in. If we don’t have the appropriate theory or data, we shouldn’t do it. The Clinton trifecta ultimately resulted in the taxpayers being eaten by the monster that was created (as in $7.4 trillion in household equity being lost and millions of borrowers in default or foreclosure).In summary, I strongly believe that any change in policy for the housing and mortgage market must be accompanied by sound theory and econometric models of the policy impact. This type of major policy shift can have Jurassic Park type of unintended consequences for the housing market, the mortgage market and borrowers. Remote desktop connection for mac windows server 2012 r2Before proceeding, I suggest a study from the Congressional Budget Office, FHFA and The Federal Reserve on the joint effects of all programs kicking in together.I appreciate the difficulties faced by FHFA and others about predicting the success rates for HAMP and HARP. Treasury market.6 We are in unchartered territory on Fed intervention and mortgage rates and we have to be careful not to create more unintended consequences that could devastate American taxpayers.While this proposed expansion of HARP does not include principal write downs, bear in mind that it is virtually impossible to accurately predict the outcomes of HAMP and HARP if FHFA agrees to principal reductions AND the Attorneys General Settlement (which includes principal reductions). Department of Treasury provides us with a limited summary of the magnitude and effectiveness of HAMP and other programs.3 But the number that stands out is that approximately 25% of modified mortgages go into re-default after 1 year.4 True, the data is from 2010, but the trend for most recent modifications shows the same daunting trend.According to the Mortgage Bankers Association (MBA) Mortgage Refinancing Index, mortgage refinancing applications have been increasing since the beginning of 2011 (see Figure 2).5 With historically low mortgage rates, unprecedented intervention by the Federal Reserve, and the continued European debt crisis that is driving investors into the U.S. Final fantasy x x2 hd remaster strategy guide pdf downloadGiven the plethora of media and links on bank web sites and government web sites concerning loan modifications, I can’t see how any borrower interested in a loan modification could possibly not be aware of the possibilities. In addition, Fannie Mae and Freddie Mac must post relevant refinancing information on their web sites (see Table 1 for examples of existing web sites).Of course, this is an unprecedented change from current procedures. And bear in mind that we only have data on loan modifications since 2008 and virtually no data over a long period (4 years) on principal reductions.SECTION 4: HAVING FANNIE MAE AND FREDDIE MAC CONTACT BORROWERS DIRECTLYSection 4 requires that Fannie Mae and Freddie Mac contact borrowers directly about the possibility and benefits of a mortgage modification. And there is the moral hazard of principal reductions that must be considered in any analysis (that is, will borrowers fall behind in their payments simply to qualify for a mortgage write down?).Please exercise extreme caution and wait until we have more data as to the effectiveness of the collected efforts of the 14 loan modification programs AND the principal reduction proposals for FHFA. Likewise, we can only guess at the final success of HARP and the Attorneys General Settlement. Reuters made an attempt to model principal reductions from Fannie Mae and Freddie Mac and estimated they could cost taxpayers $128 billion.7 This is a much bigger number than FHFA has indicated ($2.1 billion) and far more than the available TARP funds ($41.7 billion).
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