HARP Re-Finance Loan
Article by Karan Agarwal
HARP leads are new to the mortgage community so let’s try to make sense of requirements for a HARP re-finance and show what data sets are working well to get those deals closed. First off let’s define what HARP is, medications HARP stands for Home Affordable Refinance Program, dosage It’s also commonly referred to as a DU re-fi or DU Plus program. The terms may be different but they are describing the same program. So for our purposes here, unhealthy DU and HARP will be interchangeable. This is part of Congress’ effort to jump start the mortgage market and keep people in their homes. If you have been in the industry for any amount of time you probably already have your own ideas of just how effective this program will or won’t be, but we’ll focus on the requirements for getting those deals done.
The basic tenants of the HARP deals are as follows:Mortgage Trigger Leads
1. You will be working with the servicer to get these deals done. The original lender does not need to be the servicer for these deals. This presents some very unique opportunities for those of you who work directly for the lender. So if you work for Bank Of America, there is a gold mine in these deals with the right kind of data. If you are a broker, there is still a gold mine but he data you’ll be using will be a bit different.2. The first mortgage can be up to 105% LTV. No appraisal is required but the AVM will vary by servicer. Juniors can be subordinated to unlimited CLTV!3. The type of loan you’ll be transition people to is straight forward. A 30 year fixed will need to be put into another 30 year fixed. If you have an adjustable you can take them to a 30 year fixes or another adjustable. A 30 year fixed can’t be transitioned over to an adjustable.4. Borrow may not have any late reporting mortgages in the last 12 months.5. There is not had credit score requirement but there will be rate adjustment for scores under 7406. The loan must be agency loans, fannie or freddy
So let’s talk about the data for getting these done.
If you are working for the Lender/Servicer, Bank of America, Wells, etc.
You have an advantage that is unique and you have the opportunity to provide real benefit to your borrow. Using a soft inquiry lead (which your employer already does at the wholesale level) you have the ability to screen via the soft inquiry and find your existing customers that eligible for a HARP refi. This is usually done with the borrow name and partial SSN which are provided with our leads. We are screening the credit report so the other requirements are read directly off the credit and ensure that your prospects meet the specific requirements for the HARP program. If you can imagine the scenario of calling Johnny Borrower with your internal customer information and our lead and letting them know that they qualify for a reduction in their interest rate without an appraisal then you already have half of the deal done. Please give us a call and let us go over this unique opportunity.
If you are a broker;
As a broker, you will have the same opportunity to help your borrow and gets deals funded but the tact you will take will be different from the LO who is working for the lender. Since you don’t have access to look up customers via an internal system your marketing will be done in a more traditional manner. Direct mail has proven to be a solid method for getting these borrows and the mail piece is simple. They are already approved and since you’ll be screening via the same soft inquiry process that the institutional lenders are using you’ll have the same added advantage of knowing what’s on the credit report before a single piece of mail is sent or a single phone call is made. Once the borrower’s eligibility is verified you’ll be pushing the re-finance through the servicer. Please call us to get more details about this unique opportunity. The deals are the middle ground between an FHA re-finance and a conventional deal. These require less effort than a convention and a better paycheck than a streamline.
About the Author
To learn more about the HARP 2.0 options available to you, visit http://www.confirm-eligibility.com/
For more informaiton please visit here…
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