Official Press Release | FHFA, Fannie Mae and Freddie Mac Announce HARP Changes to Reach More Borrowers

FHFA, Fannie Mae and Freddie Mac Announce HARP Changes to Reach More Borrowers

Washington, DC – The Federal Housing Finance Agency, with Fannie Mae and Freddie Mac (the Enterprises), today announced a series of changes to the Home Affordable Refinance Program (HARP) in an effort to attract more eligible borrowers who can benefit from refinancing their home mortgage. The program enhancements were developed at FHFA’s direction with input from lenders, mortgage insurers and other industry participants.

“We know that there are many homeowners who are eligible to refinance under HARP and those are the borrowers we want to reach,” said FHFA Acting Director Edward J. DeMarco. “Building on the industry’s experience with HARP over the last two years, we have identified several changes that will make the program accessible to more borrowers with mortgages owned or guaranteed by the Enterprises. Our goal in pursuing these changes is to create refinancing opportunities for these borrowers, while reducing risk for Fannie Mae and Freddie Mac and bringing a measure of stability to housing markets.”

Fannie Mae and Freddie Mac have helped approximately 9 million families refinance into a lower cost or more sustainable mortgage product, approximately 10 percent of those via HARP.

HARP is unique in that it is the only refinance program that enables borrowers who owe more than their home is worth to take advantage of low interest rates and other refinancing benefits. This program will continue to be available to borrowers with loans sold to the Enterprises on or before May 31, 2009 with current loan-t0-value (LTV) ratios above 80 percent.

The new program enhancements address several other key aspects of HARP including:

  • Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers;
  • Removing the current 125 percent LTV ceiling for fixed-rate mortgages backed by Fannie Mae and Freddie Mac;
  • Waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie Mae and Freddie Mac;
  • Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the Enterprises; and
  • Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to the Enterprises on or before May 31, 2009.

An important element of these changes is the encouragement, through elimination of certain risk-based fees, for borrowers to utilize HARP to refinance into shorter-term mortgages. Borrowers who owe more on their house than the house is worth will be able to reduce the balance owed much faster if they take advantage of today’s low interest rates by shortening the term of their mortgage.

The Enterprises plan to issue guidance with operational details about the HARP changes to mortgage lenders and servicers by November 15. Since industry participation in HARP is not mandatory, implementation schedules will vary as individual lenders, mortgage insurers and other market participants modify their processes.


The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.7 trillion in funding for the U.S. mortgage markets and financial institutions.

Full release with Fact Sheet and Q & A below…



FHFA, Fannie Mae and Freddie Mac Announce HARP Changes

28 Responses to “Official Press Release | FHFA, Fannie Mae and Freddie Mac Announce HARP Changes to Reach More Borrowers”
  1. JS says:

    Here are President Obama’s words:

    “There are still millions of Americans who have worked hard and acted responsibly, paying their mortgage payments on time,” Obama said. “But now that their homes are worth less than they owe on their mortgage, they can’t get refinancing. That will soon change.”

    Note the key words, “ACTED RESPONSIBLY”. So anybody who has suffered such a financial hardship that they have fallen behind in their payments is IRRESPONSIBLE! WOW! If your bread-winner spouse died, you are IRRESPONSIBLE. If you incurred exceptional medical expenses because of an ill child, you are IRRESPONSIBLE. If you were laid off at age 55, after working non-stop, since you were 16 (like me) you are IRRESPONSIBLE! If you are IRRESPONSIBLE, ie missed payments, you cannot qualify for this program.

    Echo’s of the famous Seinfeld “No Soup for You!” episode, with Jamie Dimon playing the Soup Nazi, Jerry playing Obama, his girlfriend playing the struggling American homeowner, and towards the end, Newman playing Tim Geithner. Watch it!

    Perhaps Obama can discontinue unemployment insurance for anyone who was so irresponsible that they got laid off. Also, he can discontinue health coverage for anyone who is so irresponsible that they are 10 pounds overweight.

    This is the time to make America a land of RESPONSIBILITY, and that starts with RESPONSIBLE Americans!

    Except of course the banks, who get to keep all their profits, and nationalize all their losses!

  2. Jeff Rage says:

    Looks like the FHFA will threaten citizens when they call the DC office. How can a subserviant Government employee threaten any citizen with police brutality? They do it because they’ve been trained to do it, they are acting out of fear, it is pathetic and it is scary. When a cornered corrupt official is threatened with the light of day, they retaliate with every violent means that they have at their disposal. This ain’t no paranoia kids, this is real! Hammer the phones!

    Deputy Director for Housing Mission and Goals
    Edward DeMarco

  3. Steve Bensonhurst says:

    Evict Jef Kinney – these relentless assholes do not get it. Game over motherf#$kers!
    Don’t sign, don’t pay, don’t walk.

  4. Chris Henricks says:

    They blow it up and want to profit on the little guy on the way down.

    NOTHING happens until assests are valued by their true worth.
    Which means the banks are insolvent.

    I’ve had it!

    Rush the Banks ,Rush Wall Street Rush your local assesors office and have something sharp, explosive or a big ol 2×4,axe handle etc. in your hand and

    “Beat Them Until They Understand” not just listen.

    They wonder why we’re pissed off?

    • Javagold says:

      go Gadhafi on them !

      • lvent says:

        Anyone see Hillary Clinton got caught on tape saying “We went into Lybia and now he’s dead” meaning Kadaffi, and she sort of laughed about it…These people are really evil….Dictator or not, who are they to choose who lives or dies? It is like we are going backwards……We are becoming more and more uncivilized because a rogue regime has hijacked the world and is running it…AKA THE U.N./NATO/THE NEW WORLD ORDER..They are saying that his own people killed him but even that is no excuse…this is not how a civilized world is supposed to be. No one should be allowed to be judge, jury and executioner…in the 21 st century…If he committed crimes…he should have been arrested…and tried…Now we are just going into nations and executing people? Where is the line drawn with all of this…One million dead Iraqi’s and how many dead and maimed American soldiers plus trillions in debt… all to capture one dictator who had nothing to do with 9/11 and had no weapons of mass destruction…Like 9/11, the story just doesn’t add up..

      • lvent says:

        Hope these politicians realize, not too many Americans are liking them too much these days and are saying the same things about them….

      • housemanrob says:

        Poorrichard’s blog says he is not dead….that he is 33rd degree freemason and has been sent off to Europe in retirement….they say the dead guy is a body double…….and that Gaddafi had to be removed because he was trying to unite Africa……

      • lvent says:

        I belieive that one Rob…The pics of his murdered body were grainy and hard to make out….But that is not what they want us to believe and that is what is wrong about it….The way they lie to instill fear…

      • housemanrob says:

        …..or just to downright mislead us…..a tool of counter intelligence!

      • lvent says:

        Rob, I meant they want to instill fear in other nations like Iran…Like Hillary said, we went in and now he’s dead…..and covert is what they all are…OMG…I wish they all would just fall into their giant 1.2 QUADRILLION DOLLAR derivatives black hole of hell they all created….and die..! The world would be a better place without them..!

      • lvent says:

        Rob, Covert maybe like Khadaffi and Ghadaffi and Osama and Usama…Khadaffi was probably a CIA agent too. The always mean to confuse..

      • I vent and Rob….I saw the pictures taken in the ‘ freezer ‘ and the one thing I noticed was the face and head appeared to be of someone smaller in size…AND why would they show these pictures of Gad hafi …and not any pictures of Bin Laden….something does not add up here…..and I am sure others have thought the same….. I say neither of them were killed……Bin Laden may have died years back but wasn’t killed….. and I say that was not Gadhafi….my opinion.

  5. Blaine Rosbon says:

    This is a blatant attack from the Obama administration on every US Taxpayer to benefit Wall Street banks!!!
    Read this, and decide for yourself:

    “a key new condition in the plan would shift the financial liability for refinanced loans from Wall Street banks to the American taxpayer.”

    Yet another god$%amn lie from the administration and the bought shills at the FHFA.

    • Bobbi Swann says:

      This is a sham scam. It does not help those in foreclosure! It is only for those who are current on their mortgage payments, have good credit and it reduces the term from a 30 years mortgage to a 20 year mortgage but slicing off the excess above the standard 125% range. By refinancing and paying for the cost it means about $3000 out of pocket; if the costs are financed into the new loan, the normal owner will get about $26 a month in savings since the amortization period is shortened under this program. BEWARE! BEWARE!

    • lvent says:

      The Obama administration and the majority of the politicians are traitors and should be forced to resign..immediately…Eric Holder should have been removed by now as well as Gethner….ABOLISH THE FED..!

    • Blaine…..that is exactly what the government did….it put the liability on the taxpayers…freed the banks from liability for all future new re-fi’s under this new scam program… that go into foreclosure ….at the same time the treasury announces that the economy will be worse come the fall of 2012….just in time for all the new re-fi’s to foreclose……just who are they kidding….it sure isn’t the ones who know their tricks……DON’T SIGN A DAMN THING….IT IS A SCAM…A TRAP.

  6. Blaine Rosbon says:

    Ilegitimate authority – they are all in on it, DeMarco is a corrupt, worthless symbol. Terrorism is here folks, and it is coming from a Bankster owned immoral, violent Government that has seriously damaged millions of Americans.
    Executives at the housing agencies need to lose their housing, and their freedoms. Together will Bankters they’ve done far more damage than Bin Laden would ever have hoped to this country.

  7. Readdocs says:

    Who gave these guys the authority to modify loans that aren’t theirs? Another
    scam to hurt the borrowers already in trouble. If they aren’t the lenders, they
    can harp all they want, and it still doesn’t address the problems.
    I wouldn’t touch this with a barge pole. Anyone who attempts this should read
    all of the FINE PRINT at least twice to see where they are losing their rights of
    recourse after the fact!

  8. lvent says:

    Refi and lose your job or business because economic conditions are horrible because of WALL STREETS FRAUD….then they will be able to fraudclose with ease..!

  9. Fed Up in Mass. says:

    I think I like John O’Brien’s plan better. Yes, let’s create more havoc on the title. Seriously?? Oh.. and Mitt Romney just lost my vote, if he keeps spouting what he is regarding this. Over and out!!

    • lvent says:

      Let’s write in our choice, on a paper ballot…and we will tally those votes up…then we choose who we want..not a few candidates they give us to pick from….The electoral college is a sham and a fraud too…Dont vote for either party…they are both corrupt and useless…!

  10. Javagold says:

    they must be kidding !!

  11. leapfrog says:

    So….a way to clear toxic title for the banksters and a way to get a present nonrecourse loan refinanced into full recourse. Banksters can’t lose! So what’s in it for the homeowner?

Leave a Reply