HARP ? for brokers (PMI, loan, fee, refinance)

[TimtheGuy]

Can you originate a HARP loan that has PMI? Or, does the current servicer have to do it?

[eweishaar]

Yes you can use a new lender and use the HARP 2.O program if the current loan has PMI. You do NOT have to go through the current servicer.

[TimtheGuy]

Originally Posted by eweishaar

Yes you can use a new lender and use the HARP 2.O program if the current loan has PMI. You do NOT have to go through the current servicer.

Does the original PMI company have to agree in anyway? I assume the original PMI cert. then 'travels' to the new loan???

[eweishaar]

Exactly. There are no restrictions to transfer to the new lender.

[TimtheGuy]

Originally Posted by eweishaar

Exactly. There are no restrictions to transfer to the new lender.

How do you get a copy of the MI cert? Borrowers wouldn't have a copy in thier closing docs. I am having a hard time seeing how a MI cert can travel.

[Debsi]

Tim, I found this:

https://www.efanniemae.com/sf/mha/mh...inancefaqs.pdf

Q48 says that MI companies are allowed to charge a reasonable fee for transferring the MI cert to a new servicer.

[eweishaar]

I just closed such a deal last week. The lender contacted, in this case Radian, who has removed all restrictions on new lender transfers- no more LTV restrictions if it is a new servicer. Before radian and most companies would not transfer if the LTV was over 105% to a new servicer. The lender contacted Radian and requested the transfer and within 48 hours Radian transfered the MI cert to the new lender and we closed the deal. It was a thing of beauty and it will be a great asset for people who are heavily underwater, such as this particular loan which closed at 125% LTV. The DU findings will tell who has the current MI cert and will give the cert number, the borrower does not have to know any of this information.

Hope this clears things up for you

[TimtheGuy]

Originally Posted by eweishaar

I just closed such a deal last week. The lender contacted, in this case Radian, who has removed all restrictions on new lender transfers- no more LTV restrictions if it is a new servicer. Before radian and most companies would not transfer if the LTV was over 105% to a new servicer. The lender contacted Radian and requested the transfer and within 48 hours Radian transfered the MI cert to the new lender and we closed the deal. It was a thing of beauty and it will be a great asset for people who are heavily underwater, such as this particular loan which closed at 125% LTV. The DU findings will tell who has the current MI cert and will give the cert number, the borrower does not have to know any of this information.

Hope this clears things up for you

It does. Thanks for the info! I wonder if LP reports like DU.