Phoenix-based Arizona State Credit Union said it has accepted 167 applications for the Home Affordable Refinance Program in its efforts to help underwater homeowners obtain more affordable mortgages.
Homeowners who are current on their Fannie Mae mortgage and have been unable to obtain traditional refinances because the values of their homes have declined may be eligible for HARP.
HARP has been extended by the Federal Housing Finance Agency in a program called HARP 2.0 to help eligible homeowners refinance their mortgages to take advantage of today's historically low interest rates, even if the outstanding balance of the mortgage is greater than the value of the home.
In Portland, Ore., OnPoint Community Credit Union recently said that it will participate in the expanded HARP 2.0 to help homeowners who are underwater on their mortgages.
An initial version of the federal program limited the assistance to those owners whose loan-to-value ratio, the amount owed on the mortgage divided by the property's appraised value, did not exceed 125%. The expanded HARP program removes that limit, allowing more distressed homeowners to qualify.
OnPoint will now be able to offer the expanded HARP service.
