Fannie Mae & Freddie Mac Release Guidance on HARP Changes

In an effort to aid more homeowners who are underwater in their current mortgages, the Federal Housing Finance Agency has authorized Fannie Mae and Freddie Mac to implement changes to the Home Affordable Refinance Program (HARP). As of yesterday, the government sponsored enterprises (GSEs) released their guidance to lenders and servicers as to how the revised HARP program will work.

HARP will now be extended through December 31, 2013. Other changes that were put forth in the GSEs’ guidance entail lifting “the loan-to-value ratio cap, along with certain appraisal requirements, upfront loan-level price adjustment fees, and representation and warranties risk for participating lenders.”

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