HARP 2.0 News – Bank of America OUT With Fannie Mae
We have been getting a lot of calls this week from HARP Refinance customers serviced by Bank of America. The general gist of the call was that these customers had been told their HARP 2.0 Refinance was approved, many had scheduled closings, then at the last minute had been inexplicably denied.
I remarked to several mortgage colleagues this week that something was up. We learned yesterday that something was, in fact, up and it was something BIG!
Housingwire.com announced yesterday:
Bank of America is faced with numerous reps and warrants challenges on the mortgage front, and as a result of growing uncertainty, it will no longer sell certain mortgage refinances into Fannie Mae mortgage-backed securities.
“The issue is tied to ongoing disagreements between Bank of America and Fannie Mae in regards to repurchases,” said Dan Frahm, spokesman for BofA.
Specifically, Bank of America will no longer place non-Making Home Affordable Program (MHA) refinance first-lien residential mortgage products into Fannie mortgage-backed securities.
Making Home Affordable is the Obama administration’s initiative to help struggling homeowners get mortgage relief through a variety of programs.
So, BofA states they are still doing HARP 2.0 refinances, but that seems to contradict what their customers ware telling me in droves.
Regardless, even if they continue to participate in the HARP Program they will still offer up 60 – 120 day turn times, inexperienced loan officers and rates (from every quote I have seen) higher than the going rate for HARP.
BofA customers should also have concerns that if their relationship continues to deteriorate with Fannie Mae they may also lose the ability offer the Home Affordable Refinance Program as well
All in all, if you have a Bank of America loan then it might be a wise decision to do some comparison shopping to ensure you get the best service, rate and turn time combination available on your HARP Refinance.