REAL Exclusive Magazine

Homeowner Affordability And Stability Plan

By C. J. Coury

I have been asked by many real estate professionals to clarify some of the key points of the new refinance mortgage loan available under the provisions of the Homeowner Affordability and Stability Plan (HASP). As all of you have customers who could benefit from this program it is important that you completely understand a few of the factors that determine eligibility.

• Payments must be current on existing loan with no 30-day delinquencies in the last 12 month period.
• The new first mortgage must not exceed 105% of the homes current market value. Their current loan can be paid down to a qualifying amount if need be.
• Existing subordinate financing (2nd mortgage’s, HELOC’s, etc.) must be re-subordinated by the servicing lender in order to allow for the 1st mortgage to be refinanced.
• There is no maximum combined loan to value as long as the 1st mortgage does not exceed 105% of homes value.
• Fannie Mae allows any approved lender to process the HASP refinance while Freddie Mac requires the current servicer to be the new lender as well.
• Borrower must qualify for new loan via standard income and asset guidelines.
• 2nd homes and investor owned homes are eligible for HASP refinance loans as long as they were originated as such when the current loan was obtained.
• No supporting documentation is required, as a general rule, if the current lender is used for HASP refinance processing.
• No PMI is required on new mortgage as long as the current mortgage is not insured. This is true regardless of the new LTV.
• The current mortgage that is being refinanced MUST be owned by either Fannie Mae or Freddie Mac. This can be determined via the following phone numbers or web sites:
o Fannie Mae: 1-800-7FANNIE   www.fanniemae.com/homeaffordable
o Freddie Mac: 1-800-FREDDIE  www.freddiemac.com/avoidforeclosure 

This could be a very helpful program to the millions of homeowners who qualify for it across the country. Please advise your customers to inquire about their eligibility if a refinance of their first mortgage will improve their situation as this could save them thousand’s of dollars per year.

For further information about this and other homeowner’s assistance program availability please pass on the free HUD counseling hotline number: 1-888-995-4673.

C. J. Coury is a Senior Vice President with Bank of America and oversees their residential mortgage division serving Sarasota, Manatee and Charlotte Counties. Prior to joining Bank of America in 1995, C. J. was President of Mortgage Brokers of America in Birmingham, MI for 7 years. He has been an active mortgage finance professional since 1983. C. J. may be reached at (941) 952-2888 or by email at charles.j.coury@bankofamerica.com.