Restructured Home Affordable Refinance Program – Is NOT Good Enough

Restructured Home Affordable Refinance Program

Restructured Home Affordable Refinance Program

Bob Clement

There seem to be a simple truth that slips away from the eyes of the decision makers. The is a need for a better Restructured Home Affordable Refinance Program! There are millions of household that work, pay taxes and try to survive the economic earthquake of 2008. All the financial programs are somehow missing the average Joe and his wife.

People are in deep trouble when their home property is underwater, worth less than the mortgage they still have to pay the lenders. This negative equity is a ticking bomb, as the lenders have just as much to lose, if these underwater properties drown in deep (foreclosure)waters. There are not enough new refinancing options for underwater mortgages, as Former U.S. Rep. Bob Clement writes in the review below.

“Recently, President Obama unveiled the restructured Home Affordable Refinance Program (HARP), one of the only programs assisting homeowners who are “underwater” in their mortgages. The program was set up in 2008 to help homeowners refinance, but the restrictions were too rigid.

HARP reforms are improved but still restrictive. HARP applies only to homeowners with Fannie Mae and Freddie Mac loans. To qualify, they must have paid six consecutive months on time. Closing costs and other fees will be reduced. Income requirements have been waived, and insurance can automatically transfer to the new loan.

Other institutional lenders need to find ways to offer more flexibility in their mortgage requirements. Bankers tell me their hands are tied by new stricter federal definitions of qualified mortgages. Perhaps they can set up special loan categories to help young professionals and promising wage-earners become homeowners in spite of their school debts.

I understand the lending institutions’ caution. I sit on the board of directors for a small bank myself, but standards that are too strict will cause more stagnation in the housing market and compound the problem. I believe we have overcorrected the problem that spawned the bubble burst.

We need home mortgage policies that help ordinary families avoid foreclosure.

The rich can take care of themselves, the poor will be taken care of, but who rallies for the middle class? They continue to pay the taxes, funding the programs for those who can’t and those who won’t. We bailed out Wall Street; it’s time we give the middle class some overdue help.” Read More…

Former U.S. Rep. Bob Clement is president of Clement & Associates, a business development firm ( He represented the Fifth District of Tennessee 1988-2003.

I think Former U.S. Rep. Bob Clement has touched the subject in the right aspect. The rich will manage, the poor will be taken care off by others (as it was always) but the working class people with underwater mortgages need refinancing solutions better than the Restructured Home Affordable Refinance Program.

So What Is The Next Step?

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