Financing in 60430>Question Details

Cda, Home Buyer in Homewood, IL

I want to apply for the new Home Affordable Refinance program. Do I have to use the same loan servicer? I

Asked by Cda, Homewood, IL Mon Mar 16, 2009

can't seem to get a loan officer with that particular bank at any branch to answer the phone. Can I switch banks?

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CDA - Thanks for the comment about my blog. I am accepting application now to put in front of lenders. I have six that are offering the program. Please let me know if I can help you. If you would like to talk further give me a call or send me an e-mail

David Cruickshank
Ardain Mortgage Corp
0 votes Thank Flag Link Fri Apr 17, 2009
Here's another update. Read my blog referenced below. This has all my understandingof the program which differs greatly depending on if you are securitized by Fannie or Freddie. Basically if you have a Fannie Mae loan then you can refi with any servicer or lender with a banker or a broker. If you have a Freddie Mac loan then you can only refinance with your current lender or service provider. You can talk to a mortgage banker at your lender's institution or you can find a broker that does wholeasle lending with that servicer. If you are neither Fannie or Freddie well you can try and approach your servicer anyway and see what they say.

0 votes Thank Flag Link Thu Apr 16, 2009
0 votes Thank Flag Link Thu Apr 16, 2009
Update: A woman at the local branch of National City just told me the compnay won't be rolling out its participation in the Home Affordable Refinance program nationwide until May. "There is just so much to figure out and learn we have to be trained. We don't know all of the details when it comes to the interest rate offered, length of loan or any of that yet"

She then tried a small scare tactic by telling me some nasty, negative stima could be associated with participating in the program.. like the attachment of some kind of lien on my title. WHATEVER LADY.

I wanted to tell her to just stick to the facts but I was nice and held my tongue. I'ts going to be mid-summer before lenders get it together and probably fall before homeowners get any help at this pace.
0 votes Thank Flag Link Thu Apr 2, 2009
Of course you can switch banks. As you said the lenders don't know what they are going to do at this point but I'm guessing they will by April 4. You will probably get better service going through a Broker when you are able to do a refinance since they will have more motivation to get the loan closed than your current bank.

Good Luck
0 votes Thank Flag Link Tue Mar 17, 2009
Cda, Here is a brief description of how the loan refinance program works which is different than the loan modification program. I am told by my lenders that they will be rolling out the ability to refinance under the program in early April. I have several individuals like you who plan to use the program to lower their rate which under normal circumstances they would not be able to because their loan to value is above 80% have collected all their information and will be submitting their loans to underwriting as soon as they roll ot the program.

Here is a summary that I put together on some blogs that I have.

"This program will take your existing loan and allow you the ability to refinance it to today's lower rates. If you do not currently pay mortgage insurance (MI) on your existing loan you will not (according to guidelines) incur any MI on the new loan. The program is subject to certain conditions: The Loan To Value (LTV) on the home can not be more than 105% (based on the results of an appraisal). The current loan must be securitized by either of the two government agencies, Fannie Mae or Freddie Mac. This can can be verified by giving me your address and I can contact them. Other factors include credit scores and debt to income (DTI) which when verified will determine your actual interest rate. The original borrowers must also be on the new loan. You may not remove or add borrowers".

I hope this helps. Please let me know if you would like any help and I would be glad to offer any assitance that I can.
0 votes Thank Flag Link Tue Mar 17, 2009
Thanks.. I've read through the govt website, and Fannie Mae's. And David is correct, the banks don't know if they're coming or going. The guidelines from Fannie/Freddie are quite clear yet lenders appear to be completely in the dark about how to proceed. Perhaps it will take more time but my gut tells me some of the reason lenders are dragging is because well.. they don't want to help consumers like me. I am not behind on my payments and neither is anyone else applying for the Home Affordable Refinance. (It's a requirement for the program) So as far as they are concerned it does not behoove them to refinance my loan. I'm going to give my lender a couple more weeks to get it together. If nothing happens I will find a new one and that bank will lose my business completely.
0 votes Thank Flag Link Tue Mar 17, 2009
You do not have to use the same loan servicer. You refinance your mortgage based under different guidlines if you qualify for the program. Give me a call I would be happy to discuss what I know. Guidelines for the program have been issued by Fannie Mae and Freddie Mac but we are all waiting for the lenders to catch up. I can give you a wealth of information that I already have.

David Cruickshank
Ardain Mortgage Corp
0 votes Thank Flag Link Mon Mar 16, 2009
Go to the link at the bottom and your should be routed to the correct information.

Best of Luck.

Please report back to this thread to keep me informed of how your bank deals with this program. I'm curious to see how well they respond.
0 votes Thank Flag Link Mon Mar 16, 2009
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