HARP Extended Through December 2015

The Federal Housing Finance Agency said that the Home Affordable Refinance Program will be extended by two years to last through 2015.

HARP was set to expire at the end of this year.

As of January 2013, more than 2.2 million borrowers refinanced through HARP since it was introduced in April 2007 by the FHFA and the Department of Treasury.

“We are extending the program so more underwater borrowers can benefit from lower interest rates,” said FHFA acting director Edward DeMarco.

HARP is designed to allow borrowers who owe more than their home is worth the opportunity to refinance their mortgage to a lower interest rate. By extending the program, FHFA stated that more borrowers will have a chance to refinance their loan, lenders will now have clear guidance about HARP, and risk will be reduced for Fannie Mae, Freddie Mac and taxpayers.

To be eligible for a HARP refinance, a homeowner’s loan must be owned or guaranteed by Fannie Mae or Freddie Mac and the mortgage must have been sold to one of the government-sponsored enterprises on or before May 31, 2009.]

Additionally, the current loan-to-value ratio must be greater than 80% and the borrower has to be current on their mortgage payments with no delinquencies in the last six months as well as no more than one late payment over the course of one year.

The FHFA plans on launching a nationwide campaign to inform homeowners about HARP. This is meant to educate consumers about the program and its eligibility requirements in order to motivate them to explore their options and utilize HARP before the program ends.