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Follow on Google News | HARP 2.0 Program- Why Some Lenders Aren't Playing FairlyMany buzzing with hope about the HARP 2.0 Program are learning that rates are notably higher and guidelines are stricter. Underwater homeowners feel trapped in with higher rates due to lack of competition. HARP 2.0 encourages banks' imposed overlays.
By: Aiza Avupre Banks are exercising their power to arbitrarily charge higher rates in order to make massive profits. A duplex or a high rise condo can command higher rates when designated as high risk properties. Both may incur substantial damage through no fault of the owner, such as a fire that spreads from one unit of a duplex to the other, or flooding from a higher level to the units below. Even though the administration limited the maximum spread (margin profit built in the rate) to .75% on a 30 year fixed mortgage; banks are offering higher rates that satisfy their internal guidelines based on property types, credit scores and loan to value amounts. Underwater homeowners are wise to submit an application to a broker who can effectively comparison shop while pulling a credit report only one time. While many banks have their own criteria under the HARP 2.0 Program, there are other lenders that will gladly assist underwater homeowners. Digging up a bit of extra paperwork like the last two years of income documentation, may well be worth the additional savings. Homeowners are not limited to their current lenders and can may get more help with a broker as opposed to a lender, "yesterday my client was offered 5.125% through BofA, 5.25% through Wells Fargo, 5.375% through Suntrust and we finally found him a rate of 4.375%" says Lisa Oliveri of online brokerage firm harp-refi.us. The banks’ participation in the HARP 2.0 Program is voluntary, and as such they can continue to impose their own restrictions. Homeowners can learn about more about the HARP 2.0 Program by visiting http://www.harp- # # # Financial brokering service that specializes in connecting lenders, banks, private equity firms, and property owners seeking financial solutions. Services range from real estate acquisition and mortgage lending to the collateralization of restricted pink sheet otcbb penny stocks. End
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