Home Affordable Refinance Program is ‘Not a Scam’

About 800,000 families across the country could benefit from the Home Affordable Refinance Program by lowering their monthly mortgage payments, but fear is keeping them away from the program, said Mel Watt, director of Federal Housing Finance Agency, in remarks at a public campaign in Atlanta this week to promote HARP.

“HARP is designed to reward those borrowers who are the most committed in this country,” Watt said. “This is not a scam.”

The FHFA estimates that eligible borrowers could save nearly $2,300 per year on their mortgage payments with HARP. But Watt said too many borrowers are still not taking advantage of the program.

“As it stands now, people don’t trust their lenders, and it’s creating uncertainty,” Watt told HousingWire. “We know that there are hundreds of thousands of borrowers who can still benefit from the Home Affordable Refinance Program and are essentially leaving money on the table by not taking advantage of the program.”

FHFA released a new interactive map that reveals the number of estimated borrowers who are eligible for HARP across the country. Borrowers in Florida, Michigan, Ohio, Illinois, Georgia, and California have some of the largest number of borrowers eligible.

Source: “Watch: FHFA Director Watt Ensures HARP Is ‘Not a Scam,’” HousingWire (Aug. 25, 2014)