Yesterday Mel Watt spoke at the Brookings Institution on the future of Fannie Mae and Freddie Mac. It was his first public speech since taking over as Director of the FHFA. The news was not good for those of us who have been fighting for the Home Affordable Refinance Program to be expanded. Mr. Watt signaled that the FHFA will make no effort to advance HARP 3.0. The FHFA will continue to operate HARP under the current guidelines, eligibility dates, and regulations. Here is was Mel Watt’s remarks concerning the HARP program:
We have also received a number of inquiries about changing the eligibility requirements for the Home Affordable Refinance Program (HARP). Because the number of borrowers we could add by extending the eligibility date or by changing performance requirements is relatively small, we have decided not to alter HARP eligibility parameters. FHFA is, however, working to retarget our HARP outreach efforts to the approximately 750,000 borrowers who already qualify and would financially benefit from refinancing.advertisement
We were led to believe that a change in leadership at the FHFA would help HARP 3.0. More lies and broken promises. Mel Watt is no better than Ed DeMarco.