Mortgage Help

David Armstrong (Principal at First Cal Mortage) sends us this link, and timely mortgage market update:

Home Affordable Refinance Program (HARP)

http://www.fhfa.gov/webfiles/22721/HARP_release_102411_Final.pdf

“This is potentially big news to help homeowners. The program is not mandatory and may be implemented by November 15th. What may make this more attractive to Lenders is the elimination of Seller Buyback Risks that is normally associated with any loan a lender sells. Lenders do not want to take on buyback risks associated with high loan-to-value or underwater loans that may require them to re-purchase the loan if the homeowner defaults.”

He goes on to say, “Estimates by Core Logic indicate there are approximately 20 million properties underwater in the United States. FHFA predicts that approximately one million homeowners would benefit from this program within one year.”

Best Regards, David

(I feel managing our mortgage is, more than ever, a critical part of family investment management. I have little expertise in this area and rely on David to help me keep my clients and subscribers informed of important changes in the mortgage market. Bob)