I believe the administration should force Freddie Mac and Fannie Mae to accept HARP applications even if the homeowner's mortgage has Lender Paid Mortgage Insurance (LPMI).
If the administration is wondering why so few home owners have taken advantage of HARP, one reason is that many otherwise qualified applicants, myself included, are rejected because we have LPMI. I suspect most of us were not aware we had LPMI before calling our service provider about HARP. It seems unfair that so many people will miss out on the benefits of HARP because of this technicality. It also seems economically inefficient to keep otherwise responsible home owners in underwater mortgages for longer than necessary because of this odd policy. I know Freddie has this policy. I am not sure about Fannie.