According to Housing and Urban Development (HUD) Secretary Shaun Donovan, 400,000 HARP (Home Affordable Refinance Program) 2.0 applications have been picked up by five of the largest loan servicers. HARP 2.0 is targeted to underwater borrowers with Fannie Mae and Freddie Mac loans. NationalMortgageNews tells MHProNews.com President Obama has proposed a new refinance program aimed at the three million borrowers who are up-to-date on their payments but cannot refinance because of negative equity. For this effort the FHA would create a separate mortgage insurance fund, but this would require congressional approval, and Republican lawmakers are apt to turn back this measure.
(Image credit: MoneyControl)