Home Affordable Refinance Program

Blake Hampton
Fannie Mae Single Family Mortgage March 6, 2013
1

Fannie Maes Refi Plus Initiative

Fannie Mae provides Fannie Mae-to-Fannie Mae streamlined refinance flexibilities through its Refi Plus Initiative Home Affordable Refinance Program (HARP) mortgage loans fall under the Refi Plus Initiative umbrella and are defined as loans with loan-tovalue ratios greater than 80% Borrower benefit is required (lower payment or more secure product, etc.)

Same guidelines apply to both Refi Plus and HARP

Refi Plus/HARP flexibilities are available for any eligible loan acquired by Fannie Mae prior to June 1, 2009 Refi Plus/HARP offer a lot of flexibility

No credit score minimums No LTV maximums Mortgage insurance flexibilities Reduced costs
2

HARP Evolution
HARP initially announced and implemented in early 2009 On October 24, 2011, the Federal Housing Finance Agency (FHFA) announced changes to HARP in an effort to attract more eligible borrowers who can benefit from refinancing their mortgage loan As a result of FHFAs announcement, Fannie Mae announced changes to Refi Plus and DU Refi Plus on November 15, 2011 The changes were made to further assist borrowers who have demonstrated an acceptable payment history on their existing Fannie Mae mortgage loan, but may not have been able to refinance to obtain a lower payment or move to a more stable product Additional changes were made to HARP throughout 2012
End Date: The HARP program will expire on December 31, 2013!
3

HARP - Changes & Timelines

More opportunities to help homeowners:

Removed the LTV maximum Expanded our credit assessment to say yes to more borrowers Increased access and use of appraisal waivers Reduced costs and increased rep and warrant relief
12/1/2011 1/3/2012 2/1/2012 3/17/2012 4/28/2012 6/1/2012

11/15/2011

Effective date for new guidelines for Refi Plus (manual underwriting)

Whole Loan Committing > 125% LTV 30 yr FRM product

MBS > 125% LTV 15 yr FRM MBS > 125% LTV 30 yr FRM MBS 105.01-125% LTV 15 yr FRM Whole Loan Committing > 125% LTV 15 yr FRM Whole Loan Committing 105.01-125% LTV 15 yr FRM

Selling Guide Announcement SEL-2011-12 (Selling Guide Updates released on 12/20/2011)

New HARP Pricing effective delivery date (1/1/2012 MBS Issuance)

Desktop Originator/Desktop Underwriter Release Notes DU Version 8.3 March Update published for the March 17th implementation Implemented enhancements providing lenders with the estimated property value on certain DU Refi Plus casefiles

HARP changes fully implemented on June 1st - Other changes made throughout 2012

Implemented DU Refi Plus Updates Allow for > 125% LTV for fixed rate mortgages Expand DU Refi Plus property fieldwork waiver

HARP Volumes
50,000
HARP 2.0 Effective Date
(for applications dated 12/1/11)

40,000

30,000

20,000

10,000

0 Nov11 Dec11 Jan12 Feb12 Mar12 Apr12 May12 Jun12 Jul-12 Aug12 LTV > 125 Sep12 Oct12 Nov12

LTV 80 - 105

LTV 105 - 125

Source: Data is taken from the FHFA Refinance Report for November 2012. Data includes Fannie Mae volumes only.

The changes have made an impact to HARP volume!

5

Removing Barriers
External Outreach

Tools & Resources

Lender Outreach

Reaching More Borrowers

Lender Monitoring Stakeholder Summits Policy & Eligibility Changes
6

Removing Barriers Policy & Eligibility Changes

Selling Guide Announcement SEL-2012-08
Announced September 11, 2012 Effective with loans acquired on or after January 1, 2013 Goal to clarify lenders repurchase exposure and liability on future deliveries Announced September 14, 2012 Effective immediately Goal to help lenders more efficiently reach an even broader base of eligible borrowers Announced October 11, 2012 Effective immediately Goal to create opportunities for more borrowers to be eligible for a refinance Announced November 1, 2012 (Lender Letter 11/13/12) Effective immediately Goal to clarify disaster policy and provide flexibilities for loans impacted by Hurricane Sandy Announced January 29, 2013 Effective immediately Goal to clarify lenders ability to provide incentives to encourage refinancing through HARP
7

Selling Guide Announcement SEL-2012-09

Selling Guide Announcement

SEL-2012-11

Selling Guide Announcement SEL-2012-12 / LL-2012-09

Selling Guide Announcement SEL-2013-02

Borrower Tools & Resources

Options to Stay in Your Home
Refinance Options Repayment Plan Forbearance Modification Deed-for-Lease

Borrower Resources
FM Mortgage Help Centers Housing Counselors Mortgage Company Contacts HARP Lender Information Calculators Videos Links to Helpful Sites Events

Beware of Scams Information

Tips and Warning Signs Report a Scam Contact Information HUD-approved Counseling Agencies

Options to Leave Your Home

Short Sale Deed-in-Lieu

Take Action

Contact Mortgage Company, FM Mortgage Help Center, Housing Counselor

Questions?