This article presents a different perspective on the matter, arguing that while the cutoff date should not be extended, a new refinancing program for private mortgages should be implemented.
The truth about mortgage and financial accountability is that many people are in situations where they can’t afford their current mortgage payments and need help. Unfortunately, HARP was designed to help those with Fannie Mae and Freddie Mac loans, leaving out the majority of homeowners who have mortgages held by private lenders. For this reason, an extension of the cutoff date for HARP should not be considered.
However, the article proposes an alternative solution: the implementation of a refinancing program specifically for private mortgages. There are already a number of existing programs that could be utilized to create such a program. One possibility is the FHA Short Refinance Program, which allows qualified borrowers to refinance their mortgages to 97% of their home’s value. Alternatively, the Home Affordable Refinance Program for underwater borrowers could be extended to private lending institutions.
The article further explains some of the advantages of creating a program specifically for private mortgages. A primary benefit is that this would provide a more equitable solution than extending the existing HARP program. It is also likely that many borrowers would benefit from the lower interest rates associated with a government-sponsored program. Additionally, it could potentially provide much needed economic stimulus, since many of these borrowers are already struggling financially.
In conclusion, this article suggests that extending the cutoff date for the HARP program is not the best solution for providing relief to borrowers with private mortgages. Instead, a new refinancing program specifically for private mortgages should be considered. While there are a number of existing programs which could be used as the basis for such a program, the benefits could include greater equity, lower interest rates, and much needed economic stimulus. Moving forward, further research into the feasibility and potential benefits of such a program should be conducted before any final decisions are made.
This article was contributed on Nov 29, 2023