Fannie Mae Announces HARP Milestone, Program Has Helped Millions
In 2009, the U.S. government established the Home Affordable Refinance Program, or HARP, during the depths of the housing crisis when many homeowners were “underwater” — owing more on their mortgage than their home was worth. Typically, banks would not refinance these mortgages. However, HARP allowed these borrowers to refinance. Additionally, the HARP program made the process easy since it did not require an appraisal or significant loan documentation.
Since the advent of the HARP program, homeowners have saved more than $12 billion. This translates to a $193 average monthly savings per borrower, or more than $2,300 per year.
Refinancing through HARP also makes it more likely that the loan will continue to perform. The delinquency rate for a HARP loan is about half that for a loan that was eligible for the HARP program but did not utilize HARP.