Revamped Home Affordability Refinance Program (HARP)
Troubled homeownwers get a life line
In the latest attempt to address the ailing housing market, the government on Monday announced changes to a federal program that will make it easier for struggling homeowners to refinance to today’s near-record low rates.
Under the new program, homeowners who owe more on their homes than they are worth will be able to refinance no matter how much they are underwater, as long as they are current on their payments.
More than 1 million homeowners could get cheaper mortgages as a result, officials estimated.
The revamped Home Affordable Refinance Program (HARP) will also streamline the refinancing process, doing away with certain types of appraisals and underwriting requirements, and reducing or eliminating fees that prevented homeowners from refinancing in the past.
More than 890,000 homeowners have already refinanced under HARP, which is available to borrowers with loans backed by Fannie Mae and Freddie Mac originated before May 31, 2009.
But hundreds of thousands more could not qualify — mainly because of the previous 125% loan-to-value limit on the program or because banks would not take on the risk.
The 4% mortgage — good luck getting one
“We know there are many homeowners who are eligible to refinance under HARP and those are the borrowers we want to reach,” said Edward DeMarco, acting director for the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac.
Currently, about 11 million borrowers are underwater on their mortgages, with about 4.7 million of those loans meeting or exceeding the 125% loan-to-value limit, according to CoreLogic, a financial analytics company.
By the time HARP expires in 2013, the federal housing agency estimates, up to 1 million more borrowers may benefit from the new regulations.
Many of those borrowers will be from states like Florida, California, Nevada and Arizona where home values have been hit the hardest. In metro areas like Las Vegas, for example, prices have plunged nearly 60% from their early-2006 peak
The new rules and other details have yet to be finalized, but FHFA said that should all be worked out by Nov. 15. Banks may be able to start issuing refinanced loans by Dec. 1.
Lifting the loan-to-value restrictions may still only help a limited number of borrowers, according to Jaret Seiberg, an analyst for MF Global Inc.’s Washington Research Group, which analyzes public policy for institutional investors.
The problem: Mortgage holders still must be current on their payments for the past six months — with no more than one missed payment in the past 12 months –and they also must be able to qualify for a new loan.
However, Seiberg believes, the changes should allow banks to refinance loans without worrying that Fannie Mae (FNMA, Fortune 500) and Freddie Mac (FMCC, Fortune 500) will force them to repurchase the loans if the borrower defaults.
In the past, banks have been reluctant to refinance loans because they didn’t want to take on that liability, explained Shaun Donovan, the secretary of the U.S. Department of Housing and Urban Development. By doing away with that liability, more lenders will compete to refinance the loans, which he believes will make them more affordable for borrowers.
That should help remove one of the biggest barriers to refinancing through HARP, said Gene Sperling, director of the National Economic Council.
What about us? Responsible homeowners get left out in the cold
Under the newly-revamped program, Fannie and Freddie will also reduce the fees they have charged in the past in order to enable borrowers to better afford the new loans.
Among the fees that may be reduced or eliminated are those for loan level price adjustments. Going forward, borrowers may not be penalized for less-than-perfect credit scores, for example.
Fees will also be waived for some underwater borrowers who refinance into 20-year or other, shorter-term loans. By doing so, it could help homeowners get above water faster.
A homeowner who has a $200,000 balance on a 30-year mortgage with a 6.5% rate and a home value of $160,000, for example, currently makes payments of $1,264 a month.
If they refinance into a 20-year fixed-rate loan at 4.25%, it will reduce monthly payments to $1,238 and slash the balance to $160,000 in just five-and-a-half years. If they refinance to a 30-year loan at 4.5%, however, their monthly payments will be much lower, $1,038, but it will take 10 years to reach $160,000.
“It’s an opportunity for borrowers to improve their household balance sheets by repaying their mortgages much quicker,” said DeMarco.
Article from CNN Money-first published Oct. 24,2011
Tahoe Regional Planning Agency (TRPA)
The Tahoe Regional Planning Agency (TRPA) is the only regional land use planning organization. Lake Tahoe is a beautiful body of water that is threatened by environmental degradtion. The TRPA is charged with protecting the lake for the benefit of current and future generations. Their vision is for a Lake environment that is sustainable, healthy and safe for the community.
Lake Tahoe Activities
Ski Resort Snowfall Report
There are many ski resorts around Lake Tahoe. Whether you ski or snowboard, there is something for everyone. Below are links to each resort around the Lake.
Lake Tahoe recognized as #1 Ski Destination
Rand McNally recently announced Lake Tahoe as the No. 1 ski destination for 2010-11 season. The ranking is based on travel bookings to the destination when compared to other winter locations throughout the United States and Canada.
South Lake Tahoe offers value-added lodging and world-class outdoor recreation options, accommodating a variety of budgets. The region’s three ski resorts, Heavenly Mountain Resort, Sierra-at-Tahoe and Kirkwood Mountain Resort boast spectacular views, record early season snowfall this year with more than 300 inches, moderate temperatures and plenty of sunshine.
NEW FOR WINTER 2010-11 AT THE RESORTS
Heavenly Mountain Resort recently opened Tamarack Lodge on Dec. 17, a 15,000-square-foot venue that includes a restaurant, bar, 500 indoor seats and 250 outdoor patio seats at the top of the Gondola. The new Lodge is consistent with Heavenly’s ongoing commitment to providing the finest on-mountain experience for skiers and snowboarders. The resort’s revitalization over the past eight years has included upgraded lifts, increased snowmaking and grooming, a four-lane tubing mecca at Heavenly’s Adventure Peak and additional on-mountain amenities. The resort has also introduced EpicMix™ for the winter 2010-11 season, a ground-breaking online and mobile application that allows skiers and snowboarders to digitally capture and share their mountain experiences. Heavenly Ski Resort has 30 lifts that access 95 runs covering 4800 acres. This popular South Lake Tahoe Resort is very popular due to its easy access to Heavenly Village, shopping and casinos.
Sierra-at-Tahoe Resort remains a popular wth new skiers and snowboarders as it continues to offer a beginner’s package featuring a 2.5 hour lesson, equipment rental and lift ticket with access to two new conveyor lifts on Easy Street, as well as Easy Rider Express and Rock Garden. Staying connected on the slopes has its own set of rewards this winter as well with exclusive text-only deals for subscribers. Guests visiting Sierra can sign up for weekly text message deals and take advantage of ongoing Buy-One-Get-One offers throughout the resort including private lessons, lunch items, daycare, preferred parking, demo equipment and t-shirts. Deals change often and signing up is easy: text “DealAlert” to 29222. Located in Twin Bridges, approx. 10 miles from South Lake Tahoe, Sierra at Tahoe Ski resort boasts 14 lifts that access 46 trails covering 2,000 acres.
Kirkwood Mountain Resort’s ZipTahoe Treetop Canopy Tour features eight lines with speeds up to 35 miles per hour. Also introduced this year is the High Alpine Adventure Center where guests can add old-fashioned, horse-drawn sleigh rides, throttle-twisting snowmobile tours and evening snow cat tours, to the list of outdoor adventure options available at the resort. On-mountain upgrades to chairlifts provide a facelift to the resort’s existing lifts, along with new menu items at restaurants, and the construction of a new power facility slated for completion later this year which will deliver cleaner, more reliable energy to the resort and surrounding Kirkwood community. The resort’s Day Care Dilemma Lift Ticket is transferrable between parents hoping to split their time on the slopes and in the base area while sharing time with their kids. Located in Kirkwood, approximately 30 miles from South Lake Tahoe, Kirkwood Ski Resort boasts 15 lifts that access 65 trails covering 2,300 acres.
