When will the HARP 2.0 enhancements be made available?
Each mortgage lender will enact its own schedule for implementing these enhancements. Lenders should receive instructions from Fannie Mae and Freddie Mac before November 15. Several lenders could begin taking in mortgage applications under the new enhancements by December 1. Other lenders will need extra time to accommodate the changes. Enhancements such as the ones affecting delivery of loans with LTVs above 125% should be in effect by the first quarter of 2012.
New LTV requirement need to be built in to Fannie Mae (DU) & Freddie Mac (LP) electronic underwriting systems. This primarily the reason for the delay until March 2012 on the extended LTV’s.