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  1. Fannie Mae Enhances DU Refi Plus

    By on April 13, 2010

    Fannie Mae Enhances DU Refi Plus

    Effective with loan applications on or after the weekend of April 17, Fannie Mae will enhance DU Refi Plus to provide consistency with their other popular refinance program, Refi Plus. Presently, DU Refi Plus does not permit a borrower to be removed from a mortgage loan, while Refi Plus does in circumstances involving death or divorce. Updates to both programs will be expanded to permit the removal of borrowers for any reason, not simply involving circumstances of death or divorce. The updates to DU Refi Plus will not only provide consistency between the two programs, but it will also expand eligibility for a number of borrowers.

    Other updated features to DU Refi Plus include:

    •    Remaining borrowers must exhibit proof of making the monthly mortgage payment from their own funds for the previous 12 months

    •    Borrower being removed from the loan application must also be removed from the deed

    •    If a borrower is removed from the loan application due to death, the 12-month payment history will not be required

    Additionally, the enhancements to DU Refi Plus will no longer eliminate borrower eligibility for the program if the Social Security Number does not match the mortgage loan being paid off. Previously, such instances would disqualify borrowers from proceeding with their refinance through DU Refi Plus. Now, however, as long as the borrowers can provide acceptable documentation that they are one and the same, DU Refi Plus will remain a viable option.

    The latest enhancements to DU Refi Plus will potentially save a mortgage rate that may have been previously locked at a lower rate than current market conditions.

    Robert Hyder

    Follow Total Mortgage on Twitter

    Category: Stimulus

  2. Too Late To Refinance?

    By on March 9, 2010

    Too Late To Refinance?

    While many mortgage analysts believe that the refinance wave generated by historically low current mortgage rates had crested months ago, the Federal Housing Finance Agency (FHFA) nonetheless announced the Home Affordable Refinance Program (HARP) will be extended for an additional year to June 30, 2011. Fortunately, borrowers who may be eligible for Fannie Mae’s DU Refi Plus or Freddie Mac’s Relief Refinance Mortgage have been given a reprieve and can still benefit from today’s incredibly low current mortgage rates.

    That said, it must also be noted that the Federal Reserve will complete its commitment to purchase $1.25 trillion in mortgage-backed securities by the end of March. It is no secret that this program has kept mortgage rates artificially low for more than a year. Mortgage analysts believe mortgage rates will begin to rise when the Federal Reserve completes its purchase by the end of the month. If refinances seem to be drying up now, it is unlikely the mortgage industry will witness a refinance revival if mortgage rates climb back to the 6% range.

    With approximately 1 million homeowners eligible for the HARP program, it is estimated that roughly less than 120,000 homeowners have taken advantage of the program and the extraordinarily low current mortgage rates. The remaining 900,000 or so homeowners who were originally believed to be eligible for the HARP program are either underwater (owe more on their mortgage loan than their home is worth) or do not qualify for the HARP program based on stricter lender guidelines. Others simply have not completed the necessary paperwork. Additionally, some homeowners are so far underwater, even the support offered from HARP program eliminates their possibility of refinancing. Another major factor for borrowers failing to qualify for the HARP program is unemployment. Although recent unemployment figures have shown signs of improvement, there are still too many homeowners out of work.

    Unfortunately, for a large number of homeowners, the prospect of refinancing remains out of the question. Although, for a significant amount of homeowners that do qualify, time is of the essence if mortgage rates do begin to rise.

    Robert Hyder

    Follow Total Mortgage on Twitter

    Category: Refinance

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