Home Affordable Refinance Program (HARP) is a government-backed refinance program. It was launched in 2009 as a tool to stimulate the economy. At the time, mortgage rates were falling but few homeowners were able to refinance because they had lost too much equity in their respective homes. HARP waived certain loan-to-value requirements, and close to 1 million U.S. households took advantage. Then, in 2012, HARP was expanded. All loan-to-value requirements were suddenly waived, as were proof of income requirements; proof of asset requirements; minimum credit score requirements; and, as a host of other qualifiers. In many cases, HARP 2.0 won't even ask for a home appraisal. HARP requires that your mortgage be backed by either Fannie Mae or Freddie Mac.

1. Who is my servicer? Is my servicer the same as my lender or investor? Your loan servicer is the financial institution that collects your monthly mortgage payments and has responsibility for the management and accounting of your loan. It is possible that the owner of your mortgage also services it, however many loans are owned by groups of investors and these investors hire loan services to interact with homeowners on their behalf. Many lenders also have the loan servicers handle all contact with homeowners. Traditionally, banks used money deposited in customers' savings accounts to make loans. They held the loans, earning the interest ashomeowners repaid over time. Banks were thus limited in the number of loans they could make because they had to wait to make new ones until savings deposits grew or existing homeowners repaid their loans. Many families who wanted to own a home were unable to do so because there was not a steady supply of money for banks to lend. Over time, banks started to turn loans into cash by pooling large groups of loans together to create mortgage backed securities that could be sold to investors such as pension funds and hedge funds. The investors get the right to collect future payments and the bank gets cash that it can use to make more loans. Investors hire loans. Investors hire loan servicers to collect payments and interact with customers. If you have questions about your loan, or you are behind on your payments, you should call your loan servicer at the number on your payment coupon or monthly mortgage statement.

2. Is my servicer participating in MHA? All servicers for loans owned or guaranteed by Fannie Mae and Freddie Mac are require to participate. Additional servicers are strongly encouraged to participate.

3. What should I do if my servicer tells me that the investor is not participating in the Making Home Affordable Program? Keep in mind that all servicers for loans owned or guaranteed by Fannie Mae and Freddie Mac are required to participate with respect to those loans but you are not obligated to your current servicer/lender. You can choose another servicer/lender.

4. I'm current on my mortgage. Will a refinance under the Home Affordable Refinance Program (HARP) help me? Eligible homeowners who are current on their mortgages but have been unable to take advantage of today's lower interest rates because their homes have decreased in value, may now have the opportunity to refinance. Through a refinance under HARP, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they own or that they guaranteed in mortgage backed securities.

5. How do I know if I am eligible for a refinance under HARP? You may be eligible if: o The mortgage MUST be owned or guaranteed by Fannie Mae or Freddie Mac o The mortgage MUST have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. o The mortgage CANNOT have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009. o The current loan-to-value (LTV) ratio MUST be greater than 80% o The borrower MUST be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months. o You have a reasonable ability to pay the new mortgage payments. o The refinance improves the long term affordability or stability of the loan.

6. Will refinancing lower my payments? How might HARP benefit me? The objective of a refinance under HARP is to provide creditworthy homeowners who have shown a commitment to paying their mortgage the opportunity to get into a new mortgage with better terms. Homeowners whose mortgage interest rates are much higher than the current market rate should see an immediate reduction are much higher than the current market rate see an immediate reduction in their payments. Homeowners who are paying interest only, who have a low introductory rate that will increase in the future, or who face a balloon payment may not see their current payment go down if they refinance to a fixed rate and payment. These homeowners, however, could save a great deal of money by reducing the amount of interest you pay over the life of the loan. Refinancing into a more stable fixed-rate loan product and avoiding future mortgage payment increases would likely improve your ability to sustain your mortgage payments over the long-term. When you submit a loan application, your lender will give you a "Good Faith Estimate" and a "Truth in Lending Statement" that includes your new interest rate, mortgage payment, and the amount that you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, a refinancing may not be right for you.

7. Will a refinance under HARP reduce the amount that I owe on my loan? No. The objective of a refinance under HARP is to help homeowners get into more stable or more affordable loans. Refinancing will not reduce the principal amount you owe to the first lien mortgage holder or any other debt you owe.

8. How will I know if a refinance under HARP will improve the long-term affordability or stability of my loan? When you submit a loan application, your lender will give you a "Good Faith Estimate" and a "Truth in Lending Statement" that includes your new interest rate, mortgage payment, and the amount that you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, a refinancing may not be right for you.

9. How do I know if my loan is owned or has been guaranteed by Fannie Mae or Freddie Mac? Both Fannie Mae and Freddie Mac have established toll-free telephone numbers and web submission processes to make this data available. Homeowners can enter information to determine if either agency owns or guaranteed the loan. This information is not a guarantee of eligibility for a refinance under HARP, as other qualifying criteria must also be met.

10. There is no longer a maximum LTV limit for borrower eligibility. If the borrower refinances under HARP and their new loan has a fixed rate mortgage, there is no maximum LTV. If the borrower refinances under HARP and their new loan is an adjustable rate mortgage, their LTV may not be over 105%.

11. I have both a first lien and a second lien mortgage. Do I still qualify for a refinance under HARP? As long as the amount due on the first lien mortgage is less than 125% of the value of the property, homeowners with more than one mortgage may be eligible for a refinance under HARP. Your eligibility will depend, in part, on two additional requirements: o The lender that has your junior lien mortgage must agree to remain in a junior lien position. o You must be able to demonstrate your ability to meet the new payment terms on the first lien mortgage.

12. What are the interest rate and other terms of a refinance under HARP? The rate will be based on market rates in effect at the time of the refinance and the homeowner will be subject to any associated points and fees quoted by your lender. Interest rates may vary across lenders and over time as market rates adjust. The refinanced loans must have no prepayment penalties or balloon payments.

13. Can I get cash out to pay other debts? No. The Home Affordable Refinance will not return cash to the borrower for the purpose of paying other debts.

14. How do I apply for a refinance under HARP? A HARP specialist will analyze the data, direct or guide you to all the benefits HARP has to offer. We have moments of higher than average volume. Please be patient and you will be helped as soon as possible. It will also speed up the process if you have the necessary documents ready for the HARP specialist. You can reach us by dialing toll free number 888-222-5260. Generally, you will need the following: Information about the monthly gross (before tax) income of all the homeowners on your loan, including recent pay stubs if you receive them, or documentation of income you receive from other sources: o Your most recent income tax return o Information about any junior lien mortgage on the house o Account balances and minimum monthly payments due on all of your credit cards o Account balances and monthly payments on all your other debts such as student loans and car loans

15. I am delinquent on my mortgage. Will I qualify for a refinance under HARP? No. Homeowners who are currently delinquent or have been more than 30 days overdue during the past 12 months generally will not qualify. Contact your servicer to see if modification under the Home Affordable Modification Program is an option for you.

16. Will I need mortgage insurance? If your existing loan has private mortgage insurance, you will need the same amount of insurance coverage for a refinance under HARP. If your existing loan does not have private mortgage insurance, it will not be required as part of a refinance under HARP.

17. How long will refinances under HARP be available? The program expires on December 31, 2013. Your refinance under HARP must have a mortgage note date on or before that date.