Home Affordable Refinance
A critical part of Fannie Mae's role in the Making Home Affordable® Program is the Home Affordable Refinance Program (HARP), available for refinances of existing Fannie Mae (and Freddie Mac) loans. The goal of the refinance effort, as announced by the President, is "to provide access to low-cost refinancing for responsible homeowners suffering from falling home prices." The expectation is that refinancing their mortgage will put responsible borrowers in a better position by reducing their monthly principal and interest payments or moving them from a more risky loan structure (such as interest-only or short-term ARM) to a more stable product. Our solutions provide mortgage refinances with no limits on LTV, and mortgage insurance flexibilities.
Fannie Mae provides two Refi Plus™ options to provide Fannie Mae to Fannie Mae refinance solutions to eligible borrowers:
- Refi Plus for manual underwriting
Refi Plus simplifies the process of refinancing loans that are already in a lender's servicing portfolio. This product has no limits on maximum LTV and provides mortgage insurance flexibilities for LTVs over 80 percent
- DU Refi Plus™ for loans underwritten through Desktop Underwriter® (DU®)
DU Refi Plus provides increased efficiencies for the origination and underwriting of Fannie Mae to Fannie Mae limited cash-out refinance transactions in DU with no maximum limits on LTV and provides mortgage insurance flexibilities for LTVs over 80 percent. Eligible loans identified in DU receive increased underwriting flexibilities, including expanded eligibility criteria and DU minimum documentation requirements.
Origination and Delivery Deadlines
At the direction of FHFA, Fannie Mae will offer DU Refi Plus/Refi Plus loans through Dec. 31, 2018 to ensure that eligible borrowers can take advantage of the existing HARP program.
- DU Refi Plus/Refi Plus applications must be started no later than Dec. 31, 2018.
- DU Refi Plus/Refi Plus loans must be delivered by Sept. 30, 2019 (from Jan. 1 – Sept. 30, 2019).