Searching for a HARP Unlimited LTV Lender

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,094
174
63
San Diego, California
www.loansreduced.com
Many of you already know that I’m a licensed loan officer that offers the HARP Program with Unlimited LTV for both Fannie Mae & Freddie Mac. It seems we are still one of the ONLY lenders offering the program without any strange limitations. I have done some research and acted as a potential client and would like to share what I’ve encountered. After interviewing many lenders, each and every one had different restrictions on what they would do or wouldn’t do.

#1 Ranked Lender in the Nation – Outside of the “Same Servicer” program they are only going up to 105 percent Loan-To-Value. They are also only accepting Fannie Mae backed loans, Sorry folks with Freddie Mac you’re out of luck with this lender. MI transfers are allowed to be transferred to the new loan with their approved MI providers.

#2 Ranked Lender – Could not even get past their “Preliminary process” in order to even get information about the program! He wanted my social security number before transferring me to a qualified loan officer that could answer my questions. That was a red flag thrown up right away, sorry if I was a potential client I wouldn’t be doing business with you, Mr. Big banker.

#3 Ranked Lender – Before being able to speak with someone I was hung up on, not once but twice! Once I was able to get someone on the phone, I found out some valuable information. They are only servicing their own loans, if you currently don’t have a loan through them they can’t help. This means they are only participating in the “Same Servicer” program. I asked when they planned on offering it and the representative told me they haven’t heard about anything opening up and don’t think they will begin offering the program as it’s a very “risky product”. Not only that, the Loan-To-Value Restriction is still 105 percent! It seems as if this lender is not participating in HARP 2.0, they must be stuck in the stone age.

#4 Ranked Lender – They have developed contracts with certain lenders/servicers to offer the “Same Servicer” program and can participate in the unlimited LTV program for only these clients. With Open Access they are only going up to 125 percent LTV. They are ALSO stuck with the value that the Automated Underwriting System (AUS) determines your property is worth. NO Condo Freddie Mac loans, I’m not sure why they have this specific requirement but it’s quite strange they would single out these borrowers. Most MI companies are on-board with transferring the certificates EXCEPT United Guarantee, they are working on obtaining approval with them to transfer the MI certifications.

To conclude this experiment acting as a potential client I am baffled, I have jumped through hoops of fire to run into brick walls everywhere I go. I have put together a few questions to ask yourself before moving forward with a certain company.

  1. Does this company have your best interest at heart?
  2. Is the interest rate competitive?
  3. Have you been stuck in process for the past few months trying to close this loan?
  4. Is the lender you’re working with participating in the unlimited LTV program?
  5. Have you recently been denied the program?

These are questions you need to ask yourself before finding a lender to work with and don’t settle with the first one you speak too. My contact information is below and I would be happy to help answer any questions you have about the program.
 
Last edited:

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,094
174
63
San Diego, California
www.loansreduced.com
Hey Tee-Dub,
Would you like me to put you in touch with my sister branch who is licensed in Washington?

I'm not sure if they can get past the credit enhancement issue because they are so broad, but it may be worth a try. Interest rates are better than they have EVER been right now, it's wild.

I'm also hoping that when HARP 3 comes out it will eliminate these credit enhancement issues and fix automated underwriting so it underwrites it like a regular refinance or purchase. The overlays Fannie/Freddie have built into the system for HARP are very strange.
 

Tee-Dub

LoanSafe Member
Apr 1, 2012
85
0
0
I'm holding for "HARP 3" if there ever is one. We've had 3 different mortgage brokers look at our scenario and everyone hit the "credit enhancement" road block with Fannie. Probably no point in going through the pain and also pulling our credit again for nothing. Still keeping current on our loan and shelling out that 6.77 interest!
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,094
174
63
San Diego, California
www.loansreduced.com
Erik
I am trying a loan modification but if it doesnt go thru . Could i try this Harp refinance in my house.
Hi nbtapia1,
That's strange I tought I answered this exact post on the other thread.

If you're delinquent on your mortgage unfortunately you won't be eligible for HARP. The program requires that you're current on your payments for at least 12 months. Our bank has put a restriction of 24 months to increase the overall quality of the loans we service.

Here's what you need to consider with the loan modification:
1. Will the new payment be affordable, they will modify the loan to 31 percent of your gross income. Take your gross income X .31 and that will tell you what your new modified payment will be.
2. Are you spending more than 31% of your gross income on the mortgage? If you're not, in many cases you will not be eligible for the program.
3. What will the new potential interest rate be if they were to modify the loan? I can help you figure this one out.
4. Would it be more beneficial to refinance under HARP?

These are all questions you want to ask yourself before deciding which direction to take. Loan modifications are not the easiest to get done with your bank. In many cases it's like pulling teeth, you want to make sure you call them at least once a week. Provide them with all documentation that's required. PUSH PUSH PUSH. A HARP refinance is similar to a conventional refinance. It's not a negotiation with your lender, it's a new loan. I would compare it similar to a conventional refinance, only for people that owe more than the home is worth!

If you do receive a loan modification, it will impact your credit and also your ability to obtain additional financing if you're looking to buy another home. When you pay the trial period, they report it as a 3 month delinquency since you're not making the full payment. New lenders will look at the loan modification similar to a short sale or foreclosure.

What it comes down to is asking yourself "what is the best direction for my family and I to take?" - lay out all your options, weigh out the positives and negatives and go with the direction you think is best.

Hope this helps!
 

joeferris

LoanSafe Member
May 4, 2011
10
0
0
Atlanta, GA
I am in the process of starting a HARP 2.0 Refi to remove my ex-wife's name from my mortgage.

I kept reading that you should shop around and get several rate and fee quotes from different lenders.
Erik's name kept popping up, so I contacted him.

With a quick reply I found out that he wasn't able to help me in Georgia, but he offered his help anyway.
After receiving a Good Faith Estimate from my current lender I spent 30+ minutes on the phone with Erik Sandstrom.

It's refreshing to me that someone on the opposite coast, that I had never met, was willing to spend so much time with me and answer all of my questions and without any benefit to him.

Erik, thank you so much for the time and guidance the other day. It meant a lot!

Joe
 

nbtapia1

LoanSafe Member
Jun 3, 2009
164
4
18
USA
Hi nbtapia1,
That's strange I tought I answered this exact post on the other thread.

If you're delinquent on your mortgage unfortunately you won't be eligible for HARP. The program requires that you're current on your payments for at least 12 months. Our bank has put a restriction of 24 months to increase the overall quality of the loans we service.

Here's what you need to consider with the loan modification:
1. Will the new payment be affordable, they will modify the loan to 31 percent of your gross income. Take your gross income X .31 and that will tell you what your new modified payment will be.
2. Are you spending more than 31% of your gross income on the mortgage? If you're not, in many cases you will not be eligible for the program.
3. What will the new potential interest rate be if they were to modify the loan? I can help you figure this one out.
4. Would it be more beneficial to refinance under HARP?

These are all questions you want to ask yourself before deciding which direction to take. Loan modifications are not the easiest to get done with your bank. In many cases it's like pulling teeth, you want to make sure you call them at least once a week. Provide them with all documentation that's required. PUSH PUSH PUSH. A HARP refinance is similar to a conventional refinance. It's not a negotiation with your lender, it's a new loan. I would compare it similar to a conventional refinance, only for people that owe more than the home is worth!

If you do receive a loan modification, it will impact your credit and also your ability to obtain additional financing if you're looking to buy another home. When you pay the trial period, they report it as a 3 month delinquency since you're not making the full payment. New lenders will look at the loan modification similar to a short sale or foreclosure.

What it comes down to is asking yourself "what is the best direction for my family and I to take?" - lay out all your options, weigh out the positives and negatives and go with the direction you think is best.

Hope this helps!
Than you Erik. I did loan modification to save it from foreclouse , i have the loan modification, but now i have to refinance to remove his name because divorce i have to remove his nams..... what i have to do, what should be my next step...please help
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,094
174
63
San Diego, California
www.loansreduced.com
Hi nbtapia,
There's two parts of the program "Same Servicer" and "Open Access"

Largest difference - Same Servicer has higher rates than open access. Now regarding you removing your husbands name due to the divorce a few things would have to be considered. I don't believe the Same Servicer direction is one you can take.

You're going to have to qualify based on your income only, we are now able to remove a borrower as long as the remaining borrower can qualify on their own. There used to be a guideline where we would have to provide proof that you made the payments from your own funds for the past 12 months but that is no longer a guideline. We would also have to review the divorce decree to see what that states specifically regarding the property and how it is to be handled.