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March 6th, 2009

A quick HASP review



We’ve already written about HASP, the Obama administration’s latest salvo in his campaign to stem the growing tide of foreclosures, but now that it’s up and running here’s a quick review.

The program has set several ambitious goals. First, it is intended to enable as many as five million “responsible” homeowners to refinance their home loans. (Attendant to this is the goal of “supporting low mortgage rates.”)

HASP also plans on spending $75 billion on loan modifications; this is supposed to help another three or four million homeowners to keep their homes. These “loan mods” could help some homeowners rduce their payments by up to $400 per month. Other aspects of the plan will give other households $1,500 in cash and also pay off as much as $5,000 of their mortgage balance.

We have some doubts over how well this program will work, as well as concerns over the basic fairness of HASP, but we’re willing to give it the benefit of the doubt. To be sure, despite its flaws, we’d like to see it succeed; there’s a lot riding on it.

Full details are available at the White House website. And, of course, we’ll be back with more thoughts on it — and on the markets’ judgement of its effectiveness.

6 Responses to “A quick HASP review”

  1. Kimber Jones Says: April 16th, 2009 at 1:48 am

    We just learned about the hasp and as a matter of fact it looks like we will actually be refinancing with a 4.5% interest fixed for 30 years. Because we know so many people in the same situation as us with good credit but large pay cuts we decided to start a website hasploan.org for just HASP information. I believe that you can only refinance with your current lender. I’m still confirming. I can see where people could take advantage of it if they are the type of people that would make fraudulent claims. In our case it looks like it was made for us. Paul, thank you for bringing up the HASP subject.

  2. Susie Jones Says: August 31st, 2009 at 12:45 am

    Would like to know when HASP Phase II will go into effect.

  3. Jesse J Henry Jr Says: November 11th, 2009 at 12:51 pm

    I am interested into refinancing my 1st or 2nd, or both is possible. Thanks

  4. Tim Manni Says: November 11th, 2009 at 12:57 pm

    Jesse, I’m sorry but we’re not a mortgage broker. Thanks for commenting, Tim

  5. Kimberly Flowers Says: January 6th, 2011 at 1:12 pm

    I would like to know what types of programs are out there to help consumers who is upside down with their housing situation not current with the mortgage and cannot refinance. Everything I see wants consumers to start all over again and refinance for 30 years. I would just like to know is there a siutation out there that help consumers like me?

  6. Tim Manni Says: January 6th, 2011 at 2:13 pm

    Kimberly, Unfortunately, the “underwater but can’t refinance” is a huge problem in this country (as I’m sure you can understand). Well, most underwater borrowers want the chance to refinance to a new 30-year loan so that they can take advantage of the current low mortgage rates and save money each month. If you don’t want the new 30-yr term, I’m afraid there are little options for you. I would talk to your servicer and other lenders to see who has a program to help you get current. Are you currently employed? Thanks for commenting, Tim

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HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

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Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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