Obama’s revised HARP program: what does it mean -- and who stands to benefit?

 

By John R. Lefferdink

 

Last month, President Obama rolled out a revised version of the Home Affordable Refinance Program (HARP) in an attempt to aid underwater property owners struggling to refinance their homes. Under the original HARP program, borrowers with a first mortgage balance exceeding 125% of their home’s current value were entitled to lower mortgage rates. However, according to the Chicago Tribune, the program has failed miserably amidst the current housing crisis; and now, the Obama administration is attempting to help a broader percentage of underwater homeowners by extending and adjusting the scope of the initiative.  

 

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