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How can I get Freddie Mac to explain declining me for HARP?

The bank I am refinancing with(an authorized HARP lender) put all of my info into Freddie's system and we came back refused(supposedly due to delinquent payments). The lender does not know why(we have never been delinquent) and I am told I fit the guidelines perfectly. The only thing they can think of is that 3 months ago my servicer changed to M&T bank from BoA. My new lender theorises that since M&T has not been reporting my payments to the credit agencies yet that it may appear to Freddie's software as delinquencies. How can I get a human at Freddie to counter this possible computer qualifying software glitch?
  • March 30 2012 - Grand Rapids Township
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Answers (6)

It just needs a manual underwrite. Will the do that for you?
  • March 31 2012
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What Loan to Value were you applying with?   Is it owner-occupied?

The software declines lots of files, eligibility does not guarantee an approval.   If there are delinquent payments, those would be viewable on your credit report, the software will read the credit report.    The theory about delinquency for a non-reporting loan makes no sense, I would discard that theory.

As Pete mentioned, manual underwrites for files that receive Caution findings is a possibility for you.   Most lenders will not offer this option.    Manual also typically will have stricter guidelines but if you are a strong borrower and fit those, it could be a solution for you
  • March 31 2012
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Profile picture for beilfto

Thanks Pete and Justin.

Justin,
93% LTV and yes it is owner occupied.
My credit isn't perfect (685). 
Debt ratio 38%
Zero lates on mortgage.
2 lates on credit cards in 2008
Noted something in the decline about "time too short since recent account opening."  (havent used that account\zero balance).  Can I just close that?

I will ask about a manual underwriting it but sounds like I don't fit that too well.

  • April 02 2012
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Another option you might consider is a 20 year fixed loan, we are finding the Freddie software to be more lenient on approvals for 20 year requests.

You'll likely find available rates considerably better than on 30 year due to 20 year owner occupied not incurring any pricing adjustments on HARP 2.0.
  • April 02 2012
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Profile picture for CT_Mortgage_Broker
There is no reason for your loan to be declined for late payments if you have not been late on your mortgage in the past 12 months. That is standard. On the new Harp program your debt ratio can actually go pretty high. What state is your property in? 
  • April 02 2012
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Profile picture for beilfto
Justin,  Thanks again.  I will investigate a 20yr at least to see if it is approved.

Julie,  Thanks
Michigan

I am getting the feeling that there is an overlay causing this.  The guy I am working with seems pretty new.  He is telling me the turn down is coming from Freddie but i am finding this hard to get my head around.  I dont just fit the general guidelines,  I fit the requirements in detail. 
He says he is investigating with his manager.  This is a pretty well respected credit union in my area that is listed @ makinghomesaffordable.gov (one of the few locals listed in my area)
  • April 02 2012
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