HARP Refinancing Is In a Deep Plunge 2014
According to latest records, HARP refinancing is in a steep slow. April 2014 about 20,000 home owners were processing their mortgages through HARP, 12 month earlier at 2013, the figure was 107,000 home owners. There is no optimistic future at the near sight. As the economic circumstances would need to change dramatically on the upcoming month to see any refreshing revival in refinancing. Experts predict we would have to drop below 4% in order to notice any real turnover in the refinancing activity.
It could be that HARP, was a very good financial life jacket for many people, but it is very specific in scope, and because of that most originators lost confidence in the program. If originators had to turn down more applications than they they can process positively, they loose confidence in HARP as a solution. One option for a change may be to expand the guidelines so larger groups of homeowners could join the plan.
Will HARP Be Down Forever
If we look further to the horizon, there are some new pieces of information regarding the housing economy that might draw a slightly different picture. Equifax data found existing home finance write-offs year-to-date in May is $43.5 billion! This is fabulous news as it represents a 7 year low, further more it is also a overwhelming decrease of more than 37% compared to 2013.
HARP will be terminated by the end of 2015 unless the government will decide to stretch it into 2016. There is no doubt that the the main effort for FHFA is to raise awareness and to blow the bells for both troubled home-owners and housing industry experts that HARP has still some value and benefits to offer them both.
Town Hall FHFA Meeting To Save HARP
One more effort can be seen coming from the FHFA. From July 2014 they will be conducting live meetings with potential borrowers who meet the criteria, in a Town Hall types of meetings.
Which borrowers are considered relevant for these town hall meetings? Those who meet the HARP minimum requirements:
- Have a remaining balance of either $50,000 or more on their mortgage.
- Have a remaining term on their mortgage greater than 10 years.
- Their mortgage interest rate is at least 1.5 percent higher than current market rates.
First of these town hall meetings will begin at Chicago area, which the FHFA believes as much as 36,000 potential home owners meet the criteria stated above. There is some optimistic thoughts that many of them may benefit from a HARP refinance.
More FHFA town hall style meetings are scheduled for the up coming month of 2014 in Atlanta, Detroit, and Miami.
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