Tuesday, March 15, 2011

HARP Extended


The Federal Housing Finance Agency (FHFA) has pushed the cut-off date for the Home Affordable Refinance Program (HARP) out by a year. HARP allows homeowners with a mortgage owned by Fannie Mae or Freddie Mac who owe more than the home is worth obtain a new loan at today's lower interest rates. The program was originally set to expire on June 30, 2011. FHFA has now extended the program through June 30, 2012.

In addition to HARP’s extension, FHFA announced changes to each GSE’s program parameters to better align the joint initiative.

Previously, qualifying loans for Fannie Mae had to have been made prior to March 2009, while for Freddie Mac it was prior to May 2009. Going forward, both companies will use the May 2009 cut-off date for program eligibility.