Harp 2

HARP 2, Help For Homeowners Who Are Underwater: Interview with CEO Fred Glick of U S Loans Mortgage LLC, U S Spaces, Inc & and on the Board of Directors of NAIHP.org

Recently we had the opportunity to talk to Fred Glick about Harp 2 and underwater home owners it will benefit.Harp 2

Few would dispute that Fred takes it on himself to be one of the leaders in fighting and lobbying for a more ethical mortgage and real estate industries.

A seasoned mortgage and real estate professional he manages a commanding position in the industry and has been on CNBC, NPR and has been quoted in numerous publications, voicing his views at the White House and Congress to see positive change in the industry and push out the unethical brokers who have shady practices.

He recently with others helped bring forth HARP 2. A mortgage loan where homeowners that are underwater who could not refinance before will benefit.

JL: With HARP 2 now in place what developments do you see ahead in the housing industry?
FG: With people’s ability to refinance homes instead of having them go to foreclosure, people will stay in their neighborhood, spend money locally and make their communities better so prices can stabilize or go up.

JL: Analysts and Regulators are saying they expect 1 million more refinances then would have closed under HARP, with an average loan balance of $150,00 to $175,00 do you agree with this?
FG: Hard to say but if properly marketed, that could be a good number

JL : Does the consumer need to worry about deadlines to refinance under HARP 2 ?
FG Yes. They must do it by the end of 2012. Rates are ridiculously low now so why wait. Also, I am sure people are paying very high rates that will be eligible for these loans because they have to have been originated before May 2009.

JL: Lenders have been fond of adding fees to HARP loans called by Fannie and Freddie “loan level price adjustments” which where averaging 2%. I hear under HARP 2 the fees are reduced to 0% on loans 20 years or fewer, and 0.75% for mortgages for more than 20 years and for ARMs
FG: That is correct. That makes the rates not too high.

JL: Daily Properties readers have probably read one of many of the stories reporting on mortgage brokers and mortgage companies’ fraudulently adding extra fees to loans, how a consumer can tell if the fees added to their loan are fair and not illegal.
FG: In the beginning of their transaction, there is a good faith estimate. Brokers and lenders are locked into those fees.

JL: What if a loan is not owned by Freddie or Fannie?
FG: As of right now, there are no programs but the President has just announced generically, a program he wants to start. Details will follow. But, if you have an FHA loan, you can possibly get what is called a streamline loan to lower your rate.

JL: Will people who defaulted on their mortgage be able to get help under HARP 2?
FG: No. You must be perfect in your payment for the last 6 months and have had no more than one 30-day late in the last 6 months.

JL: Is there any other information consumer should know about HARP 2?
FG: You do not need to go back to your current servicer. If your loan is with Wells Fargo, Bank of America, Chase, Citibank, etc., you are not required to go to them. As a matter of fact, it might be harder since they have call centers with registered but not licensed people handling your loan.

To ask Fred Glick further questions on Harp 2 please email him at Fred(AT)FredGlickDOTcom

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  1. Hi, I really enjoyed reading this post. HARP 2.0 will help many homeowners who have been unable to refinance due to being underwater. I want Fred and all of you to know that CitiMortgage is committed to helping as many people take advantage of this program as possible.

  2. I have tried several months now to get PNC to correct my annual homeowners insurance, PNC has my annual insurance for $1,022.00 I have documents stating my annual insurance is $847.50. The adjustment would reduce my monthly mortgage payment but cant seem to get anyone interested enough to listen they just keep taking from my escrow, My mortgage payment went from $407.00 monthly to $518.00. I was approved for the Home stabilty hardship program then denied because I MADE my house payment. I couldnt get anyone to listen or do anything for me, I applied again for the hardship program and was told NOT to make any payments until I here from my personal point of contact person, since then they are threatining me with foreclosure. I DO NOT want to lose my home. Who can I turn or talk to without going thru several people to get the right answer to save my home!

  3. When will HARP 2 be available? Who will offer it? In September 2011, I tried to refinance with the original HARP program but could not because the appraiser valued my condo at only $170,000 even though three exactly the same condos in my 16-unit complex had sold for $275,000 – $285,000 from April – December 2010, and there were no other comparables. I purchased my condo for $360,000 in July 2007 with 20% down 6.25% interest so currently owe about $272,000 with all on time monthly payments. Zillow values it at $235,000, and SD County Appraiser values it at $278,000. I don’t have a current lender (Citibank was original lender) because Fannie Mae owns my mortgage and Seterus services it. Neither offers refinancing. Two of the condos in my complex were financed by Chase (w/o Fannie or Freddie) and were refinanced by the bank at lower interest rates without a required appraisal.

  4. I am in a 7 year ARM and the rate will adjust in August 2013. My husband and I can afford our payments but want to be locked into a lower interest rate so we don’t have to deal with a variable one next year and years after. I have talked to everyone possible for the past two years and no one will help because we are underwater and our loan is NOT owned by Fannie or Freddie. Any suggestions? Can you help us?

  5. My husband and I have a 7 year ARM. We were going to refinance in 2009 but obviously couldn’t with everything tanking. We are able to afford our monthly payment but want to get a lower interest rate. The ARM will turn to variable starting next August 2013. It will stay fixed for a year and adjust every August. I have talked to so many companies and no one will help because we are under water. Our loan is NOT owned by Fannie or Freddie either. I believe it’s owned by Deutch Bank. What do you suggest we do? Can we get some help eventually?

  6. I looked at the CFPB site re: Harp2 after hearing about it on Suze Orman. I don’t see anything. We qualify for everything…….& we’ve never missed a payment, but I just know it’s gonna stick us in the gut when we have to show income. We’re self-employed & everything that is comin’ in is going out. That, and we have a 2nd mortgage (that we worked 7 mths with Chase & they won’t work with us).

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