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JoJoOx19NealPROGRAMSUCCESSx13BLACKHISTORY2012PAGE17HARPOverhaultoAddresstheNeedsofStrugglingHomeownersByKeithLoriaGuestColumnistPresidentBarackObamax19sadministrationrecentlylaunchedanewplandesignedtohelpstrugglinghomeownersrefinanceunderwatermortgageloansattodayx19shistoricallylowinterestrates.OnOctober24PresidentObamaannouncedthatthegovernmentx19sHomeAffordableRefinanceProgramHARPwasbeingmodifiedtomakerefinancingatthesecurrentlowinterestrateseasierforborrowersinhopesofsavingAmericansthousandsofdollarsayear.Therealestateindustryhashadmixedreactiontotheplanwithsomepraisingtheinitiativewhileotherssayitdoesnx19tgofarenough.x1cOverthepasttwoyearswex19vealreadytakensomestepstohelpfolksrefinancetheirmortgagesx1dObamaannouncedlistingaseriesofmeasureshisadministrationhadenacted.x1cButwecandomore.x1dObamax19snewplancallsforasweepingoverhaulofthe2-and-a-half-year-oldHARPprogrameasingrulesandreducingfees.Therevisionsincludeliftingaceilingthatbarredparticipationbyborrowerswhoowedmorethan125ofthevalueoftheirhomesandusingacontroversialmodelingmethodtoreplacecostlyappraisalsthatareamongthefeesthathavekeptsomehomeownersfromrefinancing.TheHARPprogramcutsredtapegivesbanksanincentivetoparticipateandlowerstheusualfeespaidforrefinancing.Italsoencouragesborrowerstoswitchfrom30-yearmortgagestothoseofshorterdurationswhichwouldreducetheoverallriskforFannieMaeandFreddieMacloans.CurrentlyAmericansholdabout11millionunderwatermortgageswheretheloanamountexceedsthehomevalue.Howeveronlyafractionofthosewillqualifyforrefinancingunderthenewplan.Thoseeligibleincludehomeownerswhohavekeptuptheirloanpaymentsforatleastsixmonthshaveloansguaranteedbythehousingagenciesandowemorethan125oftheirhomex19svalue.Manyanalystsareuncertainastowhetherthiswillsolvetheproblemsincetheprogramwonx19thelpthe3.5millionborrowerswhoareseriouslydelinquentontheirloansorarealreadyindefault.x1cItx19sastepforwardbutwhatweneedisaleapforwardx1dsaidJohnTaylorpresidentoftheNationalCommunityReinvestmentCoalitionanassociationoforganizationsthatpromoteaccesstoaffordablehousing.TerryGreenabrokerwithAlliedMortgageCorporationinAnnandaleVa.andthePresidentoftheNationalLendersAllianceiscriticalofthechanges.x1cThehousingmarketshouldseekitsownbottomanditwillrepairitselfx1dhesaid.x1cEverytimethegovernmentgetsinvolvedandintervenesallitdoesisdelaytheultimaterepairofthehousingmarket.Ithinkitx19sabadmove.x1dStilltheplancouldhelponetotwomillionpeoplegetsignificantlylowermonthlypaymentsinhopesofstabilizingtherealestatemarket.ThePresidenthimselfacknowledgedthatthislatestproposalwillnotdoallthatx19sneededtogetthehousingmarketbackonitsfeetbuthebelievesitwillhelp.x1cTheseareimportantstepsthatwillhelpmorehomeownersrefinanceatlowerratesenableconsumerstosavemoneyandhelpgetfolksspendingagainx1dObamasaid.FormoreinformationaboutHARPcontactourofficetoday.PriscillaJohnsonRealEstateProfessionalJacksonvillePonteVedraBeachNocateeFlorida904553-2706www.pjohnson.prudentialnetworkrealty.comPriscilla.johnsonprunet.com