Update HARP 3 Refinance Loan: Help For Tucson Homeowners With An Underwater Mortgage May Be On The Way…


 

By Joseph Small

HARP 3 refinance loan tucsonThe U.S. government is considering expanding its mortgage refinancing program ( HARP 3 refinance loans) to include borrowers whose mortgages are not backed by Fannie Mae and Freddie Mac, the Wall Street Journal reported, citing people familiar with the discussions. This might be some welcome news to Tucson homeowners with an underwater mortgage.

The proposal would also transfer potentially riskier loans held by private investors to the government-sponsored mortgage entities
Fannie Mae
and Freddie Mac, the paper said.

Such a move would require congressional authorization to temporarily change the charters of Fannie Mae and Freddie Mac, according to the Journal.

About 22 percent of all homes with a mortgage, or around 10.8 million homes, down from 12.1 million last year, were worth less than the outstanding balance at the end of June, the Journal said, citing data from CoreLogic.

Under the proposal, Fannie and Freddie would be allowed to charge higher rates to borrowers in order to compensate for the risk of guaranteeing refinanced loans that are underwater and more likely to result in default.

The U.S. Treasury declined to comment.

Combined with Fannie Mae and Freddie Mac, which buy loans and repackage them as securities for investors, Washington’s footprint in the market has grown to account for nearly nine of every 10 mortgages. – Reuters

Guild Mortgage Company is a Direct HARP 2 Loan Lender. Joseph Small and his team at Guild Mortgage Co. is your trusted source for all your HARP refinance loan needs in Tucson, Phoenix, Sierra Vista, Sahuarita, Green Valley and Nogales, Arizona. Give them a call today! Maybe one day you too will say, “Joe’s My Lender!” (520) 303-5620


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