Dennis Norman Musings

Wells Fargo recently announced that, in the first half of 2009, through lower rates, refinances and modifications, it alone has helped nearly one million American homeowners lower their mortgage payments or restructure their mortgages.

Included in the loan modifications were:

• Approximately 750,000 loans refinanced using the Home Affordable Refinance Program (HARP)
• More than 200,000 modifications through the Home Affordable Modification Program (HAMP)

Earlier this year, the Obama Administration announced the Homeowner Affordability and Stability Plan with the potential to help between seven and nine million families restructure or refinance their mortgages over a period of years so that can avoid foreclosure.

“Toward that end, we’re pleased by the number of customers Wells Fargo helped in the first six months of this year,” said Mike Heid, co-president, Wells Fargo Home Mortgage.  “We continue to strongly support the Administration’s efforts, adding HAMP and HARP to the existing programs Wells Fargo already had in place.

Dennis Norman

By: Dennis Norman

Effective the 1st of this month The Federal Housing Finance Agency has authorized Fannie Mae and Freddie Mac to expand the Home Affordable Refiance Program (HARP) to homeowners who are current on their mortgage payments from the present maximum loan to value of 105% to 125%. 

The program is designed to allow homeowners, even those that are “underwater” on their homes, to refinance their existing mortgages to lower their interest rates, thereby reducing their monthly payments.  Previously homeowners that had a high interest rate mortgage, but little equity (or in a lot of cases negative equity) were stuck and could not refinance because of their loan to value.  To see if you are eligible for this program go to the “Making Home Affordable Eligibility Site.”

To read more about the Making Home Affordable plan please see this post.