Tag Archives: HARP

More than a year's worth of rumors, negotiations, and reversals concluded Thursday with a $26-billion mega-settlement between government officials and the nation├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós five largest mortgage servicers. The size and scope of the settlement makes it the largest endeavor by state and federal officials in U.S. history. Federal officials and 49 state attorneys general closed a deal with Ally Financial Corp., Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo that supplies homeowners in distress with new relief and establishes new servicing standards.

Mortgage application volume contracted by 2.9 percent from the week before, even while refinance volume continued to soar amid signs that more homeowners are seeking to take advantage of the Home Affordable Refinance Program. The Mortgage Bankers Association found in a weekly survey that mortgage loan application volume simultaneously went up 9 percent on a seasonally unadjusted basis. The trade group├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós Purchase Index climbed by 17.1 percent but remains 4.3 percent lower than figures seen during the same week last year.

The Obama administration rolled out an ambitious package of benefits and structural changes Wednesday for homeowners who want to refinance their loans. The plan would cost anywhere from $5 billion to $10 billion and pay for itself with fees exacted from financial institutions. If it makes it into law, the bill would significantly expand refinancing opportunities for underwater borrowers, shift appraisal responsibilities in distressed neighborhoods to an automated system under the GSEs, and offer new servicing reforms.

During the month of November alone, Fannie Mae and Freddie Mac handled approximately 36,000 mortgages versus October's 34,000 mortgages within the Home Affordable Refinance Program. President Obama's most recent proposition aims to assist more households in refinancing, and in the president's recent State of the Union address, he presented possible modifications to the Home Affordable Refinance Program stating that "responsible homeowners shouldn't have to sit and wait for the housing market to hit bottom to get some relief."

President Barack Obama used his State of the Union address Wednesday to tout his accomplishments and propose several new housing ventures, including possible expansions to refinance programs, consumer financial protection, and new federal initiatives to combat abusive lending practices. The speech weighed in on risky lending practices in particular and went after Republicans for their opposition to his policies, including consumer financial protection. Experts remain on the sidelines about an expanded refinance program.

Twenty-eight California Democrats urged President Barack Obama Wednesday to sidestep Congress by recess-appointing another agency director ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô this time for the Federal Housing Finance Agency. Democratic signers criticized the FHFA for failing to assist more homeowners and prevent foreclosures, beginning with an energy program described by the members of Congress as one that would lower energy payments and help Americans afford their mortgages. Last week Obama bypassed Republican opposition by recess-appointing Richard Cordray.

In accordance with the government's updated Home Affordable Refinance Program (HARP 2.0), United Wholesale Mortgage has announced its successful implementation of the December 1 enhancements to the initiative. The federal program, which is designed to help facilitate refinancing for distressed homeowners, is expected to increase the number of participants who are eligible for assistance.

Mortgage giant Freddie Mac revealed its December outlook Wednesday, forecasting that U.S. economic growth would likely climb to 2.5 percent over 2012 and that mortgage rates would stay at record lows. The GSE also pitched ideas that housing activity will scale upward but fail to reach ├â┬ó├óÔÇÜ┬¼├àÔÇ£robust├â┬ó├óÔÇÜ┬¼├é┬Ø levels seen in years prior. The company said that mortgage rates would stay low, with 4 percent for the 30-year fixed-rate mortgage leading the way recently.

Mortgage giant Freddie Mac tied weak homebuyer demand to a drop in consumer expenditures in an outlook it released Monday. The GSE captured a look at the financial mood of consumers by releasing the U.S. Economic and Housing Market Outlook, which makes forecasts according to key economic indicators that it uses. The outlook indexed overall economic health for the nation, finding a small uptick by domestic aggregate demand as it climbed to 3.6 percent ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô the second largest gain over the last five years.

One online lender is handling the refinancing rush by targeting borrowers who are eligible for the Home Affordable Refinance Program (HARP).