Freddie Mac recently announced that it will be relaxing the underwriting guidelines on their version of the HARP mortgage refinance. The announcement came in light of some homeowner complaints that they were being told by loan officers that they didn’t qualify for HARP because Freddie’s automated underwriting engine, Loan Prospector, was not allowing the loans to go through.
When a customer applies for a HARP mortgage, their information must be run through an automated underwriting engine that will approve the file. Fannie Mae’s system, Desktop Underwriter, has been approving many more than Freddie’s system. Freddie’s announcement is further evidence of the commitment to seeing HARP mortgages be the answer that homeowners have been looking for. These coming changes will allow even more homeowners to get approved for their HARP refinance and finally get the rate they have been unable to refinance into.