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HARP 3.0?

The Home Affordable Refinance Program (HARP) was started in early 2009 for homeowners who wanted to refinance but were thwarted because of declining home values. The program was initially aimed at loans that had been originated prior to March of 2009, and allowed for a home’s value to come in at 25 percent below that mortgage amount.

In March of 2012, the government release HARP 2.0, which allowed lenders to do refinance loans that were originated prior to May of 2009 and lifted the limit as to how low the value of the home could be relative to the mortgage.

But the problem that we have been seeing recently is that borrowers that purchase or refinanced after May of 2009, when rates where around 5 percent, are not able to refinance because they are beyond the May 2009 cutoff. There are tens of thousands of borrowers in this category who cannot take advantage of today’s record low interest rates.

HARP 3.0, if it were to come out, would effectively eliminate the May 2009 cutoff and would allow homeowners who have been prevented from taking advantage of the record low rates to do so. This would then translate into a healthier economy.

Being that this is an election year, I believe that there is a good chance that we could see this.

For more, call 773-557-1000, e-mail ron@ronmortgage.com or visit www.ronmortgage.com.

About Ron Ricchio

Renato (Ron) Ricchio is president of Chicagoland Home Mortgage. He grew up in Westchester and attended St. Joseph High School and DePaul University, taking a job as a loan officer in the mortgage industry soon after graduating with a bachelor's in finance in 1991. He started his own company in 2001, which he operates today. He has been ranked in the top 150 loan originators in 2010 and 2011 by Origination News. Ron is happily married with three beautiful children. A board member of San Francesco Di Paola Society and the founder of Ricchio Family Toy Drive for Lurie's Children's Hospital, he enjoys cooking and spending time with family and friends.

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