Affordable Refinance Program (HARP) so that thousands more Chase
customers can take advantage of today's historically low interest rates.
Coordinated through the Federal Housing Finance Agency (FHFA), the
expanded program will allow more homeowners who have made their mortgage
payments on time in the last year to refinance even though they do not
have enough equity in the home to qualify for traditional refinancing.
The existing mortgage must have been sold to Fannie Mae or Freddie Mac
on or before May 31, 2009. The new HARP program will come in phases
starting with loan applications dated December 1, 2011 or after.
The enhancements to the HARP program, announced separately today by the
FHFA, will include:
http://www.youtube.com/watch?v=WW3M4M-BEKI
Eliminating certain risk-based fees for borrowers who refinance into
shorter-term mortgages and lowering fees for other borrowers;
Removing the cap on loan-to-value (LTV) - previously set at 125
percent - to allow far more borrowers to qualify (effective sometime
in the first quarter of 2012);
Extending HARP through December 31, 2013; and
Streamlining the process further for borrowers.
"We are pleased to work with FHFA to expand the HARP program because it
should help thousands of Chase customers reduce their monthly mortgage
payments," said Frank Bisignano, CEO of Mortgage Banking at Chase. "We
estimate it could lower a family's mortgage payments by an average of
$2,500 a year, providing them more financial flexibility and improving
the quality of their lives."
HARP was introduced in April 2009 and was designed to assist homeowners
in refinancing their mortgage even though they may owe more than their
home is currently worth. Today, the program allows refinancing of
qualifying loans if the borrower owes up to 125 percent of the home's
value.
HARP usually reduces the borrowers' monthly payment by providing a new
loan at a lower interest rate, and it also may be used to replace an
adjustable-rate or interest-only loan with a standard fixed interest
rate loan.
Chase has been an industry leader in refinancing loans through the HARP
program.
Qualifications for HARP for Chase Customers:
The existing mortgage must have been sold to Fannie Mae or Freddie Mac
on or before May 31, 2009.
The customer must be current on their loan. They may have made one
late payment on the existing loan in the past 12 months but none in
the most recent 6 months.
The customer may not be in bankruptcy or foreclosure.
The refinanced loan must provide a reduction in payment or more stable
product (for example, moving from an adjustable rate to a fixed rate).
The existing mortgage on the home must be no more than 125 percent of
the home's current value. The 125 percent LTV cap will be removed
sometime in the first quarter of 2012.
The home can be the customer's primary residence, a second home or an
investment property.
The building must have no more than four units and can be a
single-family home, a condo or a co-op.
The original loan cannot be a Pay-Option Adjustable-Rate Mortgage or a
subprime loan.
For additional information or to determine if you are eligible to
participate in HARP, Chase customers should call 800-228-4922.
About JPMorgan Chase & Co
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services
firm with assets of $2.3 trillion and operations in more than 60
countries. The firm is a leader in investment banking, financial
services for consumers, small business and commercial banking, financial
transaction processing, asset management and private equity. A component
of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves
millions of consumers in the United States and many of the world's most
prominent corporate, institutional and government clients under its J.P.
Morgan and Chase brands. Information about JPMorgan Chase & Co. is
available at www.jpmorganchase.com.
http://www.businesswire.com/news/home/20111024006078/en/Chase-Joins-Expanded-HARP-Program-Homeowners-Refinance
