Make Harp 3.0 Happen

Advocating for The Expansion of the Home Affordable Refinance Program

The Housing Recovery is Stalling, Yet No Harp 3.0

For more than 3 years legislators hid behind a “housing recovery” as one of the factors for not supporting HARP 3.0. It didn’t matter that the recovery was never as strong as it was being made out to be. The people that most needed HARP expanded were a very long way from the housing recovery making a positive impact on their financial situation. A full recovery was always 10 years in the future. Well, now it appears better days for underwater homeowners may be farther away than we imagined. The housing recovery is stalling. The Wall Street Journal is reporting that 21 of the top 50 markets saw negative equity rise during Q4 of 2014. This does not sound like a recovery:

In 21 of the 50 biggest U.S. housing markets, the number of borrowers who owe more on their homes than the homes are worth increased during the fourth quarter, according to a report to be released Friday by Zillow Group Inc., a real-estate information company.

Nationwide, the picture got better, but only marginally so. About 16.9% of all mortgaged homes were underwater in the fourth quarter, down 0.1 percentage point from the third quarter. Zillow said the normal share of underwater borrowers is generally thought to be around 5%.

Actually, it sounds like the complete opposite. A hopeful person might think this would scare Congress into taking some action before this soft “Housing Recovery” completely reverses direction. A good place for Congress to start would be passing HARP 3.0. But I’m not a very hopeful person.


Updated: March 23, 2015 — 3:40 pm


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  1. Seriously the rule about the fact that your loan has to be a Fannie May or Freddie Mac loan has really screwed me and a lot of other people that fall into the category.

  2. I’m a single father with one kid in college and another going next fall, I bought in the Summer of 2007 and now own a home 50K underwater, it was a conventional mortgage, no Fannie, Freddie, FHA, so I do not qualify for Harps 1&2, but I am slowly bleeding out. I am a college graduate with a technical job and still there is not enough at the end of the month. I don’t own big screen TVs, no boats or beach property, no cable or new cars, no vacations and dinners out, I am responsible, which is more then I can say for most that O know, but I just need a hand with a mortgage that is making someone else rich while I go broke.

    This is not the American dream my parents lived and not the one I want fory children.

  3. I am in the boat I am not qualify because my loan is not own by Freddie Mac Fannie Mae so I don’t qualify congress needs to act and pass a harp 3.0

  4. On the same boat as everybody else. Bought our home back in 2005, and was offered an ALT-A loan, which it’s not backed by either Freddie Mac or Fannie Mae. In 10 years, I have never been late in my payments. I am still about $50k under water, which I could bring to the table to refinance the property, but I won’t. This is now a rental property for us, and even though we lose about $750 every month because the rent is not enough to cover the mortgage, to me it’s not a good investment.

    On December, the FED will raise the interest rates, and I am probably going to lose even more money every month. My hope is that I may finally qualify for HAFA, and finally short sale this home

  5. Has anyone heard of anything changing with HARP (if it continues) in regards to credit enhancements that have been placed on consumer’s loans i.e. pool insurance etc. when sold to secondary. I have quit a few borrowers that were Freddie/Fannie that do not qualify due to credit enhancements that were no fault of their own. It is a shame that these homeowners cant take advantage of HARP because of how their loans are packaged up and sold.

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