Although many credit unions may not have realized it, the second version of the federal government's Home Affordable Refinance Program is a more workable and beneficial for both borrowers and credit unions than its predecessor, according to housing finance executives at credit unions that have begun making the loans.
Rolled out in 2010, the first version of HARP soon gained a reputation for significantly burdensome paperwork and a loan-to-value cap of 125%, which left far too many borrowers unable to participate. Further, if homeowners fell beneath the LTV cap, they would often founder on the HARP's underwriting guidelines, which were set by Fannie Mae. That further weeded out potential participants.
With those restraints, many credit unions reported opting out of the program, preferring to do, they said, better by their members in need of mortgage loan assistance than they could through the program.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
