Yesterday officials held a conference call promoting the 'Helping Responsible Homeowners Act of 2011.' Originally introduced in January, the bill aims to remove the barriers that keep non-delinquent, existing borrowers from refinancing. Those in the mortgage business should be interested to know that they are proposing to eliminate LLPAs and adverse delivery charges for loans - the GSEs could not charge any additional upfront fee beyond the standard guarantee for a qualified mortgage. (In effect, this would lead to only one standard guarantee fee for all borrowers.) It would remove LTV limits for underwater borrowers so mortgage refinancing would not be limited by the LTV of the borrower. (Currently,borrowers in the HARP program can have a maximum LTV of 125%. Removing this constraint could allow up to 10-15%of borrowers in the 2005-07 vintages to be eligible for GSE refinancing.) It would remove the second-lien barrier to refinancing so that services and creditors that refuse to have their second liens 'resubordinated' in the refinanced mortgage would be prevented from originating new GSE loans. And it would ensure that higher LTV borrowers receive a fair mortgage rate, suggested at no more than 40 basis points higher than the GSEs' 60 day commitment rates.
http://www.mortgagenewsdaily.com/channels/pipelinepress/07132011-budget-woes-revive-housing.aspx
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