The HARP 2.0 refinance program will become widely available to underwater homeowners on Monday March 19, 2012 and is expected to bring mortgage relief to those who are current on their home loan, but have been unable to refinance into today’s historically low mortgage rates because of their negative equity status.
The full implementation of the revamped HARP 2.0 program, which was initially announced by President Obama in late October of 2011, has taken several months to come to fruition. And while in recent months it has been available on a manual basis and limited to just the homeowner’s current servicer, the series of changes that the computerized version of the program is undergoing this weekend, will dramatically increase the volume and speed of applications processed (think flying 100 people across the ocean versus 100 people swimming across it).
The industry’s four largest mortgage servicers all say they will be taking part in the revamped Home Affordable Refinance Program (HARP).
Bank of America, Chase, Citigroup, and Wells Fargo have each expressed their support of the program and the changes that will allow more underwater homeowners to refinance at today’s lower interest rates.Government officials expect the program’s revisions – particularly the GSEs’ waiver on representations and warranties – to increase competition for mortgage refinancing.