Adam Levitin | HARP’s Dirty Little Secret: Most HARP Refis are of Positive Equity Mortgages

HARP’s Dirty Little Secret: Most HARP Refis are of Positive Equity Mortgages

So the Administration has announced that it is expanding the HARP refinancing program to help underwater borrowers. Originally, HARP enabled borrowers with up to 125% loan-to-value (LTV) ratios to refinance (105% for adjustable rate loans). The revised program removes the LTV cap for fixed-rate loans, reduces some refi fees, permits refis of loans that have been mildly delinquent recently, and extends the eligibility date. All the news accounts have stated that the number of HARP refinancings is expected to roughly double, from about 900,000 refinancings to perhaps 1.8 million refinancings. This is trumpeted as a boon for underwater homeowners.

The revised program may well help some underwater homeowners lower their monthly payments. Unfortunately, the 900,000 and 1.8 million numbers are seriously deceptive. Most of the HARP refinancings to date have been for borrowers with positive equity. HARP has refinanced very few underwater borrowers. As of 2Q 2011, 92% of HARP refinancings (776,009 of 838,441) were of loans between 80% LTV and 105% LTV. Only 62,432 refis were between 105% and 125% LTV. In other words, HARP has provided very little help for underwater borrowers.

(It’s not clear to me what makes a refi of a <100% LTV loan a HARP refi in the first place–it’s defined by FHFA as a “Fannie Mae to Fannie Mae and Freddie Mac to Freddie Mac first lien refinance loans with limited and no cash out that are owner occupied with LTV’s over 80 to 125.” That means that an 80% Fannie to Fannie no cash out refi is counted as HARP, but that just looks like a regular refi to me. But that’s another story.)

Check out the rest here…

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4closureFraud.org

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16 Responses to “Adam Levitin | HARP’s Dirty Little Secret: Most HARP Refis are of Positive Equity Mortgages”
  1. JS says:

    HAMP’S Dirty Little Secret: (Thats HAMP in addition to HARP!)

    Posted on 4closurefraud.org Nov 27 2010 (Just over 1 year ago. Similar posts to Propublica and NY Times, repeatedly.)

    http://4closurefraud.org/2010/11/26/citimortgage-family-w-autistic-daughter-father-with-alzheimers-homeless-despite-making-payments/

    JS says:

    November 27, 2010 at 7:38 AM

    This is one of the “dirty little secrets” of HAMP. The FDIC HAMP Guidelines, state on page 3, that the process will,

    “Mandate that the cost of the modification must be less than the estimated foreclosure loss.”

    [http://www.fdic.gov/consumers/loans/loanmod/FDICLoanMod.pdf]

    This means that homeowners who have substantial equity in their our homes are categorically denied a modification and forced to foreclosure!

    Furthermore, the Attorney’s General are supporting this apparent flaw. Iowa Attorney General Tom Miller, stated the following in his testimony to the Committee on Banking, Housing, and Urban Affairs, on November 16, 2010:

    “To be clear, the States do not believe that every foreclosure is a tragedy that must be avoided. To the contrary, we have consistently stated over the last three years that we are only interested in modifications where the cash flow from the modification exceeds the expected proceeds from a foreclosure sale.”

    This certainly seems counterproductive, as those most vested in their homes are categorically denied modifications. It is also an indication that the HAMP program’s very intent is to help Mortgage investors, not homeowners. Helping some homeowners is just a coincidental benefit of the program, that is being falsely hyped by the government and the banks as an act of good will.

    If a homeowner has equity, the banks know, up front, that they will ultimately reject the modification, but start a trial mod anyway, so they can squeeze out a few more bucks in trail payments, penalties, and fees, before kicking them to the curb. It is completely heartless.

    This is America?

    • lvent says:

      Bloomberg news interviewed some really arrogant broad by the name of Laurie Goodman from Amherst Securities yesterday, who stated, the best thing to do with all of the “shadow inventory” is bundle it up and sell it to investors…The American people should be going beserk by now…WAKE UP AMERICA, THEY ARE STEALING YOUR COUNTRY FOR THEIR UNSUSTAINABLE DEBTS…!! If Ron Paul had really was the American patriot that he claims to be, he would be speaking out about this like Marcy Kaptur has….they don’t have the mortgage or the notes up on Wall Street…..they are just outright stealing homes just to steal..and take America over without ever firing a shot…This is dangerous, a National Security issue…they are ignoring our Constitutional Rights, or Bill of Rights and all of the laws that were put in place to protect WE THE PEOPLE from a Government that is corrupt and oppressing its own people…..They broke the social contract, now, the people must revolt! Stop conforming and complying America!!! Don’t leave your homes, EVER!! They have NO LEGAL RIGHT TO TAKE YOUR HOME…NONE!!!! The day they sold your fraudulently induced loan to Wall Street and committed the Origination Fraud….was the day they lost the legal right to take your home…!!!

  2. Principal reductions and restructuring debt are the only things that would work, and that is not happening

    • lvent says:

      You would have to be nuts to sign or agree to anything right now…The bank attorney just told me my loan was never put into a trust, they have no chain of title…The attorney from my Original house closing told me months ago, do not sign or agree to anything, the debt is unsustainable..

      • lvent says:

        acmodspecialists..Imeant to say, that attorney told me THEIR DEBT IS UNSUSTAINABLE….as for me, my house is paid for and it has been since the origination fraud occurred and they sold my fraudulently induced loan onto Wall Street……The GSE’s and Wall Street are $600 trillion in debt with no collateral to back that up……and the world GDP is like $60 trillion which is exactly what Chase owes in mortgage derivatives..The collateral mortgage fraud is massive and their debt is unsustainable.

  3. Deutsche Bank v FDIC Chase JP Morgan WAMU
    http://www.scribd.com › Business/Law › Court FilingsJan 7, 2011 – Deutsche Bank v FDIC Chase JP Morgan WAMU … DISTRICT COURT FOR THE DISTRICT OF COLUMBIA DEUTSCHE BANK NATIONAL TRUST COMPANY, Plaintiff, v. …. First Union Nat’l Bank, 357 F.3d 1244 (11th Cir. …
    Deutsche Bank Response to FDIC and JPM Motions to Dismiss
    http://www.scribd.com › Business/Law › Court FilingsJan 21, 2011 – Goldman Sachs & Co., 575 F.3d 725 (D.C. Cir. 2009) ………………………………………………………………………….24 Deutsche Bank Nat’l Trust Co. v. FDIC …
    [PDF]
    UNITED STATES DISTRICT COURT FOR THE DISTRICT OF …
    http://www.msfraud.org/law/lounge/Deutsche-v-fdic.pdfFile Format: PDF/Adobe Acrobat – Quick View
    DEUTSCHE BANK NATIONAL TRUST. COMPANY, as Trustee for the Trusts listed in Exhibits 1-A and 1-B,. Plaintiff, v. FEDERAL DEPOSIT INSURANCE …
    [PDF]

    • lvent says:

      Thanks Shelley! My sister was fraudclosed on by CHASE last year with no proof they owned her loan..WA MU was the originator…they finally got the Judge to tell them they had to get out if they can’t pay CHASE the pretender lender, $266,00.00..some realtor keeps coming to the house and telling them stuff like, I am the one who is going to sell your house..then he said a maintenance company now owns their home and then he came back the other day and said, you know you only have a couple of weeks to get out…I told my sister to shoot him in the ass with a bb gun next time he shows up….

  4. A customer of mine works for Bank of America and came in and told me she was so happy to get a refi for her parents, because it saved them a 40,000.00 reduction on their home, they were never in danger of losing, and I told her I felt sorry for them. The massive refi’s are to get the homeowners that have clouded titles to sign a quick deed over and clear the titles, of the home they owned by law due to bank fraud. And the bank wants this bad to be able to claim they have substance and not empty loans. I sent her a bunch of emails with proof of what I am saying and she said she did not know where to begin, she was in shock ! She forwarded it all to her parents. She has been extremely busy doing this with people whom can pay their mortgages. It is a fraud to gain clear title and put something on the banks books, instead of empty clouded loans. One of my customers never asked for a loan and was told a year ago she had to accept a hundred dollar mod loan. She was asked to resign papers, she refused and they told her you have to accept this mod loan. she said I did not ask for it and I am not going to sign for it and what if I really need one down the road and you force me to take this one. She was sent the mod payment coupon, but has continued to pay the entire amount and not sign anything. Another customer was given a six dollar mod deduction! WOW SIX DOLLARS!!!. She told them she might as well pay the entire amount. They told her she would have to pay the reduced S-I-X-D-O-L-L-ARS so she did for nine months, then she got the call like I did and was told she was now unapproved and was in default and foreclosure status and her partial payments were now partial payments and not mod payments and she said well I have the money to catch it up and they told her they would not accept it and she has been fighting to save her home now for over a year. More customers have told me similar stories. I warned others not to do mod loans for these above reasons. A lot of mod loans e to people whom did not ask for them, or they were only reduced a hundred dollars. What a help. Just enough to drag them into alleged foreclosure, with no intent to help them keep the house, and even to drag homeowners that were not in trouble into foreclosure. These criminals are all scumbags . The mods and HAMP program were intended by design to drag people into foreclosure while they added up the service fees on loans the crook debt collectors do not own..

    • the day the banksters turn the PSA’s into securities and stock they had to shred the notes because it would be cashing a check twice and securities fraud. so now they try to commit securities fraud by allowing the debt collectors to make false claims and bring the house mortgages to Freddie and Fannie whom can not accept the notes if they had not been shredded because it would be securities fraud. They use fraud claiming debt collectors to go get the unlawful foreclosure scams done and committed upon us, their victims and sell the house to Freddie and Fannie for zero dollars. Why do you think they dont have the notes? it would have been much better proof to gain the houses mortgages back with the notes. This was not by accident. it was to prevent being accused of securities fraud. The gansters have made money over and over on these mortgages. Scamming the wealthy, our retirement funds, and investors and last but not least the homeowners and the job makers and the income earners and the entire 99% of the entire globe.

  5. Ron Moss says:

    The question they all should be asking, How did they get underwater in the first place. Was it something they did or was it caused by the mafia styel bankers?

    • lvent says:

      What positive equity? What are the homes really worth? The homes were never worth the bubble price that’s for sure..There was never that kind of collateral in these homes..They pushed for refis to keep the Ponzi Scheme and their casino rolling..that is why the second lien no longer exists, it went bye bye when the bubble burst….It was all a scam…more crap to sell interests in their investors and more interest money for them to collect off of all of us…
      I wouldn’t give these dirty bastards another dime to gamble with!! They want to create more wealth for themselves off of repackaging these refis…these crooks made hundreds of trillions in fraud off out of thin air… and hid it in overseas bank accounts and invested in other countries like China…they suck and need to go to prison for life…Abolish the FED! Refis and loan write downs and loan mods are just more fraud!!!….their debt is unsustainable…and it is going to go down…Don’t sign or agree to any of their fraud….! Our homes are paid for free and clear the day they sold the loans to Wall Street…!! They all got paid and made hundreds of trillions!!! They want us to pay for all of their fraud just to rob us and bankrupt us!!…Their $60 trillion in mortgage fraud can never be repaid..!!!

      • lvent says:

        I meant to say their $600 trillion in collateral mortgage derivatives fraud can never be repaid…Chase alone owes $60 trillion in mortgage fraud!

      • A customer of mine works for Bank of America and came in and told me she was so happy to get a refi for her parents, because it saved them a 40,000.00 reduction on their home, they were never in danger of losing, and I told her I felt sorry for them. The massive refi’s are to get the homeowners that have clouded titles to sign a quick deed over and clear the titles, of the home they owned by law due to bank fraud. And the bank wants this bad to be able to claim they have substance and not empty loans. I sent her a bunch of emails with proof of what I am saying and she said she did not know where to begin, she was in shock ! She forwarded it all to her parents. She has been extremely busy doing this with people whom can pay their mortgages. It is a fraud to gain clear title and put something on the banks books, instead of empty clouded loans. One of my customers never asked for a loan and was told a year ago she had to accept a hundred dollar mod loan. She was asked to resign papers, she refused and they told her you have to accept this mod loan. she said I did not ask for it and I am not going to sign for it and what if I really need one down the road and you force me to take this one. She was sent the mod payment coupon, but has continued to pay the entire amount and not sign anything. Another customer was given a six dollar mod deduction! WOW SIX DOLLARS!!!. She told them she might as well pay the entire amount. They told her she would have to pay the reduced S-I-X-D-O-L-L-ARS so she did for nine months, then she got the call like I did and was told she was now unapproved and was in default and foreclosure status and her partial payments were now partial payments and not mod payments and she said well I have the money to catch it up and they told her they would not accept it and she has been fighting to save her home now for over a year. More customers have told me similar stories. I warned others not to do mod loans for these above reasons. A lot of mod loans e to people whom did not ask for them, or they were only reduced a hundred dollars. What a help. Just enough to drag them into alleged foreclosure, with no intent to help them keep the house, and even to drag homeowners that were not in trouble into foreclosure. These criminals are all scumbags . The mods and HAMP program were intended by design to drag people into foreclosure while they added up the service fees on loans the crook debt collectors do not own.. Only does Chase claim they are the mortgage holder when they are trying to steal your house.

      • lvent says:

        FOX just talking about the efffects of the Stock Market rally today that was caused by the propping up of the European Central banks… Some idiot said that the bank bailouts in 08 did not cause inflation..there is no inflation..WOW WHAT A LIAR!!!..Gotta wonder if these morons are even living on the same planet?

      • lvent says:

        You are so right Shelley, it is so hard to explain and the powers that be meant it to be confusing and sound crazy…..I recently tried to help a mom from my daughter’s softball team make sure that she had all the right docs that proved she paid her house off a couple of years ago…..She called CITI who got the pay off and asked them why she did not get the Orig. mortgage and note stamped paid, told her they could not send her the stamped paid note and mortgage…She found fraud and forgery throughout her loan and the title company admitted forging her husbands name on a release to public…She has the satisfaction but at the recorders office the mortgage was only partially released…I told her to get a hold harmless letter from the title company to be safe….! It is incredibly sad to me that the President is still pushing this refi agenda and the people don’t have a clue what is being done to them….an even bigger set up to fail if the economy worsens..but this time they will have no legal recourse!..My son told me that his girlfriends Mom and Dad who both are unemployed are trying to do a re-fi with CHASE.. I told him they should be careful because they are living on unemployment and can’t find jobs..They only have 2 years left to pay on their home so they are no doubt afraid…Chase already sent some idiot out to take pictures of their home..Damned Nazis…!

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