Like many of the government-backed refinance programs that proceeded it, the HARP 2.0 program is not running quite as smoothly as planned. The problem for borrowers is that very few lenders have chosen to participate in the program. Worse than that, some lenders that initially were participating in HARP 2.0 have recently chosen to back out of the program. The very limited number lenders participating in this program has led to long turn times. In some cases it is taking more than three months from start to finish on HARP 2.0 loans. Borrowers who have Freddie Mac loans or who have mortgage insurance are having the hardest time finding a lender who will help them with the HARP 2.0 program, and when they do find a participating lender they are in for very long waits. Borrowers with Fannie Mae loans that do not have mortgage insurance tend to get somewhat better rates and relatively faster turnaround times but with the HARP 2.0 program the process is rarely quick or easy.
But on the bright side, HARP 2.0 is up and running and while it can take months to get a HARP 2.0 loan, many underwater borrowers have waited years for a chance to improve their interest rates so perhaps a few months waiting is not all that bad after all.
Contact us in the sidebar if you have a conventional mortgage that is backed by Fannie Mae or Freddie Mac and would like to be connected with a lender who is participating in the HARP 2.0 program.