My husband and I have been trying to apply for HARP for almost a year. On the outside, we meet all of the pre-qualifiers. Yet, when we reach the underwriting phase, Fannie Mae rejects it. We have heard several different possible reasons from lenders, but the consensus seems to be certain "credit enhancements' were made on the loan. Trying to find out what those "credit enhancements" were was no easy feat. What I could determine was that there is a MI certificate on the loan, as well as default insurance with Lehman Brothers (who aren't around anymore). We do not pay a PMI on our loan, so they are assuming that it was a LPMI. Our servicer, Seterus, has no documentation to support either insurance on the loan. However, this is hindering us from moving forward. The only advice that anyone, including Fannie Mae mortgage help center in Philly (which, by the way, are useless), could offer was to contact the servicer and get the terms of the loan modified. After speaking with Seterus, I realized that this is going to be more of the same. We would likely be denied for a modification because we are current with our mortgage payments. We need to make some changes soon with our current mortgage. I have not been able to work as a result of an injury, so our income has been greatly reduced. My husband makes a decent salary, but it has not been easy. I feel like we are being punished for an obvious bad loan on a house that we absolutely love. We are confused, frustrated and nervous. And if anyone has any advice on this situation, we would greatly appreciate it.