Obama Demands More HARP ChangesFeb 7 2012
After the original changes made to the Home Affordable Refinance Program, or HARP 2.0, back in October, the Federal Housing Finance Agency (FHFA) bragged about how it would allow different lenders to refinance borrowers who had loans controlled by another shop, thus increasing competition between lenders.
However, after evaluating the status of mortgages done due to the HARP 2.0 program, the Obama administration doesn’t think the FHFA went far enough. According to National Mortgage News, a new report from the Amherst Securities Group claims that “HARP 2.0 still provides ‘special benefits’ to the controlling servicer when it comes to underwriting requirements and protections from loan buy-back requests.”
The Obama administration suggests that there should be more relaxed rules around different servicer refinances. However, many wonder if Congress would act upon loosening these regulations. These new demands may be designed to just put further pressure on FHFA to re-evaluate HARP 2.0.