Borrowers Welcome Faster HARP Loan Responses

With so many borrowers applying for the updated version of the Home Affordable Refinance Program, also known as HARP, many are becoming frustrated with the amount of time it is taking to get assistance from major banks. On the other hand, many borrowers are welcoming the faster HARP loan responses they are receiving when applying online. There is a clear difference in customer service occurring with regards to response, approval and closing times associated with HARP.

Since the middle of March, the official expanded HARP refinance has been available to existing borrowers who are underwater with their mortgages. In other words, these borrowers owe more than the value of the property due to real estate market conditions. Unable to refinance to any type of mortgage, HARP was updated to include an unlimited loan to value, except for adjustable rate mortgages, so that all borrowers who have mortgages funded prior to June 1, 2009 with Fannie Mae or Freddie Mac could refinance to a lower mortgage rate. In many cases, these refinance applications for HARP do not require an appraisal to determine the value of the home. Now that the program has been underway for almost two months, borrowers have been finding that many lenders, especially the major banks, are unable to give them immediate assistance. In some cases, it can take 30, 60 or even 90 days to even receive a call from the lender to discuss the possibilities of the borrower refinancing. During the days of the housing boom when masses of borrowers were seeking purchase and refinance mortgages, this problem did not exist since banks were ready, willing and staffed to close on mortgages right away. According to Accenture Credit Services and reported in the Wall Street Journal, the largest mortgage lenders are often taking more than 70 days to complete a refinance. This is completely unacceptable for borrowers who are anxious to apply for and complete a HARP refinance now, not in the future when mortgage rates may be higher. Borrowers should be aware that they do not need to use the big banks for a HARP mortgage, nor do they need to use their original lender or current servicer.

Many borrowers are finding that the quickest and easiest way to receive HARP information is by inquiring online at their convenience. With a minimal amount of information submitted, borrowers will receive a call from the lender or broker within minutes of placing their inquiry. Often, lenders will contact them on the same day with the results of their application, such as approval and details. Since lenders and protocol are different, it may take 5 to 10 days to receive an approval which is still much shorter than what the big banks are offering. Many small lenders and brokers have maintained or increased their staff and are able to easily handle the volume of applicants coming their way. The online HARP process is quick, efficient and has been able to help numerous borrowers refinance quickly.

Conforming mortgage rates are low now, but no one knows where they are heading or will be in 60 to 90 days. Even after receiving a HARP approval, if a borrower waiting for a closing needs to lock a mortgage rate for a long period of time, the cost is higher. HARP is supposed to be a streamlined process that is completed quickly. It is becoming more evident that, as some borrowers welcome faster HARP loan responses, the word will spread sending more consumers to the convenience and efficiency of an online HARP mortgage application where customer service is an important part of the overall experience.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders' rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.