The Home Affordable Refinance Program, also called HARP 2.0, was rolled out in March of 2012, to help home owners refinance at lower rates, even if their home is considered underwater. Underwater loans are loans in which the mortgage is greater than the value of the home. This concern has stopped many home owners from attempting to refinance. With HARP 2.0 on their side, they are now reconsidering.
If your bank hasn’t prepared a comprehensive, aggressive program to get mortgage refinance leads, you could lose out on a great deal of business.
Finding Mortgage Refinance Leads
Finding leads doesn’t need to be at all difficult. The first thing you want to do, of course, is update your website to cover basic information about HARP and to encourage both prospects and existing clients to contact you about refinancing. It might also help to have a few designated people who are knowledgeable about HARP standing by to talk to people who call or come in.
You can also find leads by going through your files to look for aged leads on home refinancing. Perhaps they didn’t qualify at the time they applied, but they qualify if they go through the Home Affordable Refinance Program. You can reach these aged leads with an email or a direct mail newsletter outlining the program and how it may help them.
Characteristics of the Home Affordable Refinance Program
HARP 2.0 is for people whose loans are backed by Fannie Mae or Freddie Mac. The mortgage had to have been secured and backed by one of these two agencies prior to June 1, 2009. Although customers don’t need a high credit score, they do have to have been caught up on their loan for the last six months, and they had to have made timely payments during the most recent 11 out of 12 months.
Other restrictions include no previous participation in a HARP program and owning less than 20% of equity in the home. The program does not cover jumbo loans.
The program does not impose a maximum loan-to-value, or LTV, ratio for those refinancing at a fixed rate, although some individual banks may apply such guidelines. Home owners refinancing with an ARM need to show an LTV of less than 105%.
Financial studies suggest that refinance leads have increased by over 200% per day thanks to the Home Affordable Refinance Program. Make sure you and your customers take advantage of it now.