Old Second Residential Lending division has positioned itself to accommodate the Home Affordable Refinance Program (HARP). The Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to extend HARP by two years to December 31, 2015. The program was set to expire December 31, 2013.
In addition, FHFA will soon launch a nationwide campaign to inform homeowners aboutHARP. This campaign will educate consumers about HARP and its eligibility requirements and motivate them to explore their options and utilize HARP before the program ends.
The HARP program is designed specifically to help borrowers who may not qualify for traditional refinancing due to low home value or because they have low or no home equity. Borrowers may be able to lower their monthly payment, their rate or move from an adjustable rate loan product to a fixed rate loan product.
“The housing industry has a seen a number of changes in the past several years.” said Steve Weber, senior vice resident of residential lending at Old Second Bank. “Old Second has taken the necessary measures to act as facilitators. We want to make it easy and economical for consumers to take advantage of these federal programs.”
To be eligible for a HARP refinance homeowners must meet the following criteria:
- The loan must be owned or guaranteed, and acquired by Fannie Mae or Freddie Mac on or before May 31, 2009.
- The borrower must be “current” on their mortgage payments – no missed payments in the last 6 months, and no more than one payment missed in the last 12 months.)
- The first mortgage can exceed the current market value of the home.
Borrowers can visit http://www.oldsecond.com/loans/home-loans/#special-financing to get more information about the HARP program and to determine if their loan is owned by Fannie Mae or Freddie Mac.