Quicken Loans says it is waiting for mortgage insurance companies to issue guidance before it starts refinancing GSE loans with existing MI policies under the new Home Affordable Refinance Program.
The Detroit-based mortgage banker currently facilitates HARP refinancings of high LTV Fannie Mae and Freddie Mac loans for borrowers who do not have mortgage insurance.
"We do HARP loans every day," said Quicken Loans chief economist Bob Walters, adding that it's generally a "non-starter” if there's an MI policy. "Most MIs have different rules for modifying policies and it is extraordinarily complex," Walters said in an interview with National Mortgage News.
The mortgage insurance companies need to put together a "cohesive process" for modifying policies so they can be easily transferred to a newly refinanced HARP loan.
"Until that happens, we still have some of the same constraints that we had about modifying policies," the chief economist said.
Fannie and Freddie issued guidance for the new HARP program on Nov. 15, which makes it easier and less risky for servicers to refinance high LTV loans in their portfolios. The new initiative starts Dec. 1.
According to figures compiled by National Mortgage News and the Quarterly Data Report, Quicken Loans is the 8th largest mortgage lender in the U.S., but its does not own GSE servicing rights that might be eligible for HARP 2.0.
Walters noted that the reduction in HARP fees on December 1 will have an immediate impact on reducing the borrower's cost to refinance. But that doesn't mean Quicken Loans will see much of an increase in HARP refinancings.
"I don't anticipate a great increase right out of the gate," Walters said.
