Identifying Eligible HARP 2 Candidates

 

Identifying Eligible HARP 2 Candidates

The increased number of eligible refinance candidates that will result from the recent changes to the Home Affordable Refinance Program (HARP) presents both an opportunity and challenge to lenders and servicers. There’s opportunity for more business, but the influx of this new activity may cause operational challenges.

Consumer Data Lead’s comprehensive data & analytics solutions and settlement services offering can immediately help you capitalize on the opportunity by quickly identifying eligible candidates and effectively deploying your loan modification strategy.

Identifying Your Best HARP 2 Candidates

We’ve identified 6.7 million borrowers who are most likely to benefit from the HARP 2 changes by deploying sophisticated analytics against our nationwide property database.

We can easily match your current portfolio against our HARP 2 Ready Database to identify your best candidates for loan modification.

Our targeting strategy includes analysis of the following criteria:

• Conforming loans with less than a 80% CLTV at the time of origination

• Current CLTV of 125% or higher (a focus on “newly eligible” HARP candidates)

• Properties identified as not currently under any type of distressed disposition (no NOD, NOT, REO, etc)

• List has also been scrubbed against over 30 million non-agency loans to narrow in on Government-sponsored enterprise-owned loans.

• Properties with reliable AVM estimates of value

The new HARP 2 eligibility requirements also require that candidates have no late mortgage payments in the past 6 months and no more than 1 late payment in the past 12 months. To address this requirement, we’ve partnered with the three credit bureaus and can run the prospect list from the three credit bureaus Property Database against credit bureaus credit file to ensure your final list is as targeted as possible.

General Information
The loan must have been closed and committed/delivered to a FNMA or FHLMC Pool prior to June 1, 2009 in order to qualify for a DU Refi Plus or LP Open Access loan

DU Refi Plus

LP Open Access

Ineligible Loans
Any loan currently in default

Existing loan:

  • was delivered to FNMA or FHLMC on or after 6/01/09
  • is a government loan
  • is a reverse mortgage
  • is not a 1st lien
Maximum LTV & Loan Amount
LTV/CLTV – Unlimited

  • All Occupancies
  • All Property Types

Loan Amount

  • Conforming
  • Conforming/High-Balance

Loan Purpose

  • Rate and Term refinance; loan amount can include pre-paid’s & closing costs
  • Max cash back to borrower: $250
Eligible Borrower
Run DU/LP with requested loan amount and estimated value. If you receive a DU Approve/”Ineligible” or an LP Accept “Ineligible” for LTV/CLTV only, you will likely receive a DU or LP “Eligible” on March 19th when the software is updated and no longer concerned with LTV/CLTV.

Borrowers must have at least one benefit outside of DU as follows:

  • Lower rate and/or payment
  • More stable product; ARM to fixed or Interest Only to Fully-Amortized
  • Longer term; from 30 year to 15 (>105% LTV not available until 6/1/12), 20 or 25 year FRM

Subordinate Liens

  • Existing subordinate liens may NOT be paid from proceeds; lien must be re-subordinated
  • No new subordinate liens
Eligible Occupancy & Property Type
Primary residence
Second home
Non-owner occupied
1-4 units
Condos, PUDS, manufactured homes

Number of financed properties

  • DU: No limit
  • LP: No limit if loan is primary residence; max 4 properties if loan is 2nd home or investment property.
Documentation & Ratios
As required by DU or LP

  • Salary/Hourly/Bonus
    Verbal VOE plus pay stub (for LP add previous year’s W-2)
  • Self Employed/Commission
    1 year tax return

4506 required

Asset verification only required if borrower paying from their own funds to reduce balance and/or cover closing costs

DU/LP determine acceptable ratios

Credit
Credit Score

  • No minimum credit score required

Mortgage History

  • DU: Must be current
  • LP: 0x30 late in the past 6 months; 1×30 OK in last 7-12 months

Prior BK or Foreclosure

  • Standard FNMA/FHLMC guidelines
Mortgage Insurance
No MI required if not in place on existing loan

Existing loans with Lender Paid MI (LPMI) or Borrower Paid (BPMI) MI are eligible

  • Review DO/DU/LP findings to establish MI Company
  • Provide mortgage statement showing MI Company

Comprehensive Solutions

The combination of our advanced analytics, nationwide property database, and quality settlement services delivers an ideal solution to help you capitalize on the opportunities that will arise from these recent changes.

e-mail: info@ConsumerDataLeads.com

telephone: 714-453-9724

www.ConsumerDataLeads.com

NOTE:  Fannie MAE and FREDDIE MAC loans are not recorded mortgages.  We use the best search filters available, nevertheless, we can’t guarantee this type of loan to 100% accurate.  For guaranteed results you must search individual address on either the Fannie Mae and/or Freddie Mac website.

Transforming Information into Intelligence

Categories News and Events | Tags: | Posted on April 9, 2012

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