2013-02-07mortgagenewsdaily.com

``When FHFA recently expanded HARP eligibility to underwater borrowers, they continued to require lenders to distinguish between borrowers with less than 20 percent equity and greater than 20 percent equity in ways that left higher equity borrowers with greater costs and administrative burden. Although the GSEs lowered up-front fees for HARP loans with less than 20 percent equity, they left them in place for those with more equity. This created the economically indefensible situation in which borrowers with significant equity in their homes and presenting lower risk could face steeper costs in refinancing than borrowers with no equity whatsoever and therefore higher risk. These additional fees can be as high as two percent of the loan amount, or an extra $4,000 on a $200,000 loan. ''


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