FHFA, Fannie Mae and Freddie Mac Announce HARP Changes to Reach More Borrowers

HARP is unique in that it is the only refinance program that enables borrowers who owe more
than their home is worth to take advantage of low interest rates and other refinancing benefits.
This program will continue to be available to borrowers with loans sold to the Enterprises on or
before May 31, 2009 with current loan-t0-value (LTV) ratios above 80 percent.
The new program enhancements address several other key aspects of HARP including:

• Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers; Removing the current 125 percent LTV ceiling for      fixed-rate mortgages backed by Fannie Mae and Freddie Mac;

• Waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie Mae and Freddie Mac;

• Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the Enterprises; and Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to the Enterprises on or before May 31, 2009.

Small Claims Court

Increasing Small Claims to $10,000: Commencing January 1, 2012, the small claims court jurisdiction will generally increase from $7,500 to $10,000 for an action brought by a natural person.  For a claim of bodily injury from a car accident, the increase to $10,000 will not occur until 2015.  The dollar limit in small claims court for an action brought by a corporation or other entity will remain at $5,000.  Senate Bill 221.

What not to do when you are in the buying process!!!

If you plan on buying a home, are in the process or have been pre-approved to buy remember these simple things.

1. Do not change jobs, become self-employed, or quit your job!



2. Do not buy a car or a van, or a truck or you may be living in it.


3. Do not use charge cards excessively or let accounts fall behind.


4. Do not spend money you have set aside for closing.


5. Do not omit debts or liabilities from your loan application.


6. Do not buy furniture.


7. Do not originate any inquires into your credit.


8. Do not make large deposits without first checking with your loan officer.


9. Do not co-sign for anyone.


10. Do not change bank accounts or move money around.


If you are unsure at anytime or for even a second doubt what you are doing call us first it could save you a lot of heart ache in the end. Contact us anytime with questions or to get pre-approved to buy a home!