A mortgage technicality called a "credit enhancement" makes borrowers - who would otherwise qualify for a HARP refinance (Home Affordable Refinance Program) - ineligible for the program.
These borrowers pay no PMI (private mortgage insurance) because they had good credit and/or because they participated in a first time borrower education class to help them understand the responsibilities of home ownership. This made them better borrowers, so their bank issued them a loan without requiring the additional monthly payment of mortgage insurance.
Despite their good credit, Fannie Mae will not underwrite a refinance loan for them and now they cannot take advantage of today's low interest rates.
Encourage President Obama and our lawmakers to eliminate this injustice in HARP 3.0. Sign now!!