The HARP 2.0 program has provided greater relief for many more homeowners. I still think the program has been under utilized. Originators of both Fannie Mae & Freddie Mac versions need to consider the full possibilities instead of simply addressing negative equity.
We also have misinformed homeowners who may have been denied for HARP 1.0 and given up. Further complicating matters is the application of Automated Underwriting programs. Fannie's Mae provides appraisal waivers for submitted value within variance of Fannie Mae's value assertion. This allow's for more creativity in obtaining a homeowners approval. Freddie Mac's loan prospector issuance of waivers is not as aggressive Fannie's but its still a possibility. I've also noticed where Originators and Processor's will accept a findings that may adjust the borrowers pricing when an alternative finding with less risk to the investor is possible.
I could go on with examples of homeowners being denied at one lender and approved at another simply because of improper loan structuring but it doesn't stop there.
Fannie Mae and Freddie Mac issue their guidance as the agency willing to purchase the loan based on those parameters. Investor's who loan the money have a certain amount of exposure. As such many place their own guidance/overlays to further restrict the generic guidance.
So...we have improper application analysis, improper automated underwriting, overlays & misinformed homeowners who could greatly benefit from a refinance.
Unlimited loan to value and no minimum credit score....what more could we ask for?
No comments:
Post a Comment