Replies (19)
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:4280
this is a known issue and unfortunately you won't be able to refinance with the enhancement on your loan, even though you had nothing to do with that decision. Harp guidelines are frequently changing and each change tends to open a few more doors. Only advice is to keep an eye on guideline updates and maybe one day it will open up to allow your loan to be eligible. For example last year around September Freddie opened eligibility to certain loans with certain enhancements so these type of changes might one day help you.
- gcgirl
- Contributions:1
The same thing has happened to me. I am so frustrated by this process. I have applied for HARP 2.0 refi with 3 different lenders. All have denied my HARP Refi due to approved/ineligible from Fannie Mae or some other unstated reason even though they mentioned I was a strong candidate. It was only until the 3rd lender (Wells Fargo), that I found out a credit enhancement was attached to my loan when it was sold to FNMA. When I called my lender (Navy Federal CU) to inquire, they denied this. When I asked them to put this in writing, they hesitated and said they would put in a request for it but did not know if a letter would be provided. I doubt I will ever get anything in writing. I am so angry about this, and all the time I have had to take to apply and go through the loan process. I was told to keep trying with different lender, but this is ridiculous. By the way, I meet all guidelines, have strong credit rating, and no late payments. In essence, those of us who are making consistent payments, on time, with strong credit are being punished for some stupid agreement or whatever between lender and FNMA! I am going into letter writing mode very soon...starting with Navy Federal, FNMA, Federal Housing Finance Agency, and Congressman/Congresswoman!
- Jeff Pallack, "jpallack"
- Contributions:12
The exact same thing just happened to my wife and I. A+ credit ratings, never a late payment on anything. We had no idea how this was attached to our loan or the implications it would have. We were finally excited to be able to refinance our condo after years of being shot down, only to be excluded yet again. Once again for the people who pay their mortgages there are no real programs to help you out.
- Norm D Plume, "Coolidge or Chaos"
- Contributions:2309
Once again for the people who pay their mortgages there are no real programs to help you out.
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an irresponsible statement. Perhaps you weren't able to be helped however it is flawed logic to then assume that no one who makes their mortgage payments can be helped.
HARP/FMRRP,VA IRRRL and FHA streamline refinance have been helping many people.
Navy Credit Union had their own quasi-conventional loans that they sold to Fannie; however they certainly did have credit enhancements.
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an irresponsible statement. Perhaps you weren't able to be helped however it is flawed logic to then assume that no one who makes their mortgage payments can be helped.
HARP/FMRRP,VA IRRRL and FHA streamline refinance have been helping many people.
Navy Credit Union had their own quasi-conventional loans that they sold to Fannie; however they certainly did have credit enhancements.
- Daniel Larruso, "Dlarruso"
- Contributions:3
BIG FYI - Fannie Mae recently issued an update (October 11, 2012) to the Desktop underwriting software that now addresses the "credit enhancement issue" in HARP applications. Fannie Mae is asking those of us they were denied originally because of this enhancement issue to try again. Here is the update they sent out:https://www.fanniemae.com/content/announcement/sel1211.pdf
We did resubmit, were approved this time through the fannie mae system and should be closing within the next week at a very low interest rate. Several of our friends are also now finding success as well since the update. The only catch is that because the credit enhancement was essentially "Investor paid MI" on our loans, you have to cover the same lever of coverage as "borrower paid" which to us means $17.52 extra a month in MI, however we will be saving over $450 a month just from the reduced interest rate. The good new is that the MI drops off when your are at 80% LTV. We are in AZ and would be happy to share our loan officer with anyone who is interested as they are now prepared to work through this credit enhancement issue. Good Luck everyone.
We did resubmit, were approved this time through the fannie mae system and should be closing within the next week at a very low interest rate. Several of our friends are also now finding success as well since the update. The only catch is that because the credit enhancement was essentially "Investor paid MI" on our loans, you have to cover the same lever of coverage as "borrower paid" which to us means $17.52 extra a month in MI, however we will be saving over $450 a month just from the reduced interest rate. The good new is that the MI drops off when your are at 80% LTV. We are in AZ and would be happy to share our loan officer with anyone who is interested as they are now prepared to work through this credit enhancement issue. Good Luck everyone.
- user58957842
- Contributions:1
Daniel Did you go with your current provider or another provider?
- Jeff Pallack, "jpallack"
- Contributions:12
@ "Norm D. Plume" it's not an irresponsible statement, there are thousands of people who make payments who are currently being denied refinanacing for no faults of their own. However I doubt it's worth arguing with someone like yourself.
- Daniel Larruso, "Dlarruso"
- Contributions:3
user58957842 "Daniel Did you go with your current provider or another provider?"
We had to go with a totally new provider. Our current provider is Seterus who doesn't do loans they are just a processor so HARP was not even an option for them.
We had to go with a totally new provider. Our current provider is Seterus who doesn't do loans they are just a processor so HARP was not even an option for them.
- Jeff Pallack, "jpallack"
- Contributions:12
Who did you use Daniel-San?
- Daniel Larruso, "Dlarruso"
- Contributions:3
We used W.J. Bradley here in AZ
- Go Huskers
- Contributions:641
"@ "Norm D. Plume" it's not an irresponsible statement, there are thousands of people who make payments who are currently being denied refinanacing for no faults of their own."
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What you just said is not what you originally said. Your first statement was in fact irresponsible and inaccurate.
To refresh your memory, you said:
"Once again for the people who pay their mortgages there are no real programs to help you out."
That's different than:
"there are thousands of people who make payments who are currently being denied refinanacing for no faults of their own."
The first statement is clearly untrue since many who pay their mortgages have benefited from a host of programs as Norm has already pointed out. If even one person who paid there mortgage was able to refinance it would make your statement false.
Your revised second statement may or may not be true, but that's not what you said originally and not what Norm commented on. If you want to "argue," at least make sure you don't change your story in the middle of it and pretend to be right.
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What you just said is not what you originally said. Your first statement was in fact irresponsible and inaccurate.
To refresh your memory, you said:
"Once again for the people who pay their mortgages there are no real programs to help you out."
That's different than:
"there are thousands of people who make payments who are currently being denied refinanacing for no faults of their own."
The first statement is clearly untrue since many who pay their mortgages have benefited from a host of programs as Norm has already pointed out. If even one person who paid there mortgage was able to refinance it would make your statement false.
Your revised second statement may or may not be true, but that's not what you said originally and not what Norm commented on. If you want to "argue," at least make sure you don't change your story in the middle of it and pretend to be right.
- Jeff Pallack, "jpallack"
- Contributions:12
Perhaps you should go back to the cornfields and hide behind some fake internet profile.
- Victor Emmel, "victoremmel"
- Contributions:1
I just had a client call me that had the same credit enhancement issue over the last year in trying to refinance under HARP. I was able to get her and approve/eligible. So it looks like Fannie has updated the automated underwriting system.
In regards to the PMI, your should only have to pay the PMI you are currently paying. If you have lender paid PMI, you shouldn't have an adjustment to the interest rate or payment.
In regards to the PMI, your should only have to pay the PMI you are currently paying. If you have lender paid PMI, you shouldn't have an adjustment to the interest rate or payment.
- Go Huskers
- Contributions:641
"Perhaps you should go back to the cornfields and hide behind some fake internet profile."
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Perhaps you should go create some more fake internet reviews. I'd be willing to bet my profile is more real than yours is.
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Perhaps you should go create some more fake internet reviews. I'd be willing to bet my profile is more real than yours is.
- Steve Nardin, "sknardin"
- Contributions:2
I am a Mortgage Specialist and we specialize in the HARP (2.0). I had a customer come to me who has his mortgage with Seterus and he was turned down for the HARP due to the credit enhancement. I spoke to Fannie Mae and they explained what the credit enhancement was and why it disqualified someone from HARP. A credit enhancement is simply LPMI (Lender Paid Mortgage Insurance), which is PMI built in to the rate of a mortgage.
There are changes within Fannie Mae now that allow us to refinance customers with credit enhancements on HARP. Most lenders still have overlays which do not allow this, but we don't. Let me know if you have any questions.
Steve Nardin
[Contact information removed by Zillow moderator. Please see our Good Neighbor Policy for more information.]
There are changes within Fannie Mae now that allow us to refinance customers with credit enhancements on HARP. Most lenders still have overlays which do not allow this, but we don't. Let me know if you have any questions.
Steve Nardin
[Contact information removed by Zillow moderator. Please see our Good Neighbor Policy for more information.]
- user3153850
- Contributions:2
I was just told my credit enhancement rejection was not due to LPMI apparently NFCU retained 20% of the loan and financed the 80% through Fannie may. I'm at a loss of where to proceed from here.
- Joe Buxton, "Joe Buxton"
- Contributions:16
Has anyone tried running your file back through FNMA's DU system recently? With FNMA's changes at the end of 2012 you may be now qualified for HARP 2.0.
- user3153850
- Contributions:2
Mine was very recent less than a week
- Michael Diaz, "Michael R Diaz"
- Contributions:27
I am a Mortgage officer, I hae seen this before. A few times we have been able to get around this on a some of our lines, as a direct lender and broker we have access to a wide array of programs. Many times it will really depend on the investor you are using. I had one I was doign for a client that the MI was held by CalHFA and they were not participating. we hounded them for 4 months going through every contact. With enough pressure from several clients probably calling them they have made some slight adjustments and the loan was done. Also doing unlimited LTV on Fannie and Freddie. Please contact me on your scenario and we can run through our multiple engines and see what we can do. our investors are constantly changing guidelines and some updates were released on HARP last week, also HARP 3.0 is in the works for being updated to help many who don t fit now!
HARP 2.0 Denied due to "credit enhancement"
Has anyone ran into this and what can we do about it?
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