Harp 2 Program

Governments Home Affordable Refinance Program (Harp) 2 looks good for Banks and the Borrower. This Program virtually eliminates the chance that lenders will have to pay for losses on loans that go into default, and it will help to streamline the underwriting process.
Idea behind Harp2 is simple. If you are making payments on time but didn't have enough equity to refinance, you would be able to lower your interest rate without having to pay down your mortgage balance.
This program is intended to get "on time borrowers" into lowering their monthly payments.
Eligible customers are those who are:
oCurrent on the mortgage at the time of refinance, with no late payments in last 6 months and have at least 11 payments on time in the last year.
oBorrower's mortgage is backed by either Fannie Mae or Freddie Mac.
oCurrent LTV ratio must be greater than 80%.
oLoan was originated before 06/01/2009

On October 24th, 2011, Federal housing Finance agency announced that it is making changes to current Harp program .The reason behind the changes is to allow more underwater homeowners refinance under Harp. One of the biggest changes is the elimination of the 125% LTV Ceiling on Harp loans; which means the borrower can refinance no matter how far they are underwater. Therefore, appraisals might not be needed.
Harp has been extended till December 31st, 2013.