On Monday, the 14th largest mortgage originator in the U. S., Fifth Third Mortgage Company, announced plans to become a player in the Home Affordable Refinance Program or HARP 2.0. Fifth Third Mortgage Company is a subsidiary of Fifth Third Bank.
According to Fifth Third Mortgage Company, senior vice president Bob Lewis, the institution intends to work with borrowers to help them evaluate their financial circumstances and understand their “mortgage refinance options.”
The institution plans to offer eligible homeowners to chance to refinance their current mortgages. HARP 2.0 eliminates the cap on the loan–to-value ratio as part of the revisions that went into effect in early March 2012. However, Fifth Third will limit its transactions to borrowers with mortgages up to 150 percent loan-to-value ratio based on the type of property.
Homeowners who have been unable to obtain mortgage refinances because of mortgage insurance may have an opportunity to refinance their home mortgages under the revised HARP mortgage program. The decision of some mortgage lenders to allow transference of mortgage insurance to a new bank may allow those borrowers to qualify for refinancing.
The bank has local offices in the following states: Florida, Georgia Kentucky, Indiana, Illinois, Michigan, Missouri, Pennsylvania, Ohio, Tennessee, West Virginia and North Carolina.
Last year, Bank Director Magazine ranked Fifth Third Bank number 96 out of the of the top 150 banks in the United States. The Fifth Third Bancorp has its headquarters in Cincinnati, Ohio. It has more than $117 billion in assets.
HARP 2.0 Eligibility Requirements
The basic eligibility criteria is that homeowners who have mortgages insured by Fannie Mae or Freddie Mac. In addition, Fannie or Freddie must have purchased the mortgage before June 1, 2009.
Other HARP 2.0 eligibility requirements borrower must meet include:
- The mortgage cannot have been refinance under HARP, unless the borrower refinanced under Fannie Mae between March and May of 2009.
- Homeowners must have a loan-to-value ratio that exceeds 80 percent.
- Borrower must have a current mortgage, no late mortgage payment in the last six months and no late mortgage payments during the past 12 months.
- The homeowner must have the income to make the monthly mortgage payments.
- The refinance mortgage must offer affordability and enhances the borrower’s financial situation.
Loans insured by FHA, Department of Agriculture or jumbo mortgages do not qualify for HARP 2.0.