Fifth Third Mortgage Co. is not placing any LTV limits on refinancings of its existing mortgage customers under the HARP 2.0 program.
“For borrowers in our servicing portfolio that are eligible for HARP 2.0, we are refinancing without any LTV caps,” said senior vice president Bob Lewis. “For non-Fifth Third Mortgage customers, we will refinance the eligible mortgage up to 150% LTV,” he added.
The mortgage subsidiary of Fifth Third Bank began offering the new HARP 2.0 program in November to Fannie Mae and Freddie Mac borrowers with LTVs under 125%.
On April 23, the Cincinnati-based mortgage company raised the LTV cap for noncustomers to 150% LTV and eliminated them altogether for existing customers.
The first Home Affordable Refinance Program was designed to refinance GSE borrowers with LTVs up to 125%, but was not very successful.
Fannie and Freddie issued guidance for the new HARP 2.0 program in November, eliminating the 125% LTV cap and making other improvements, such as making it easier to refinance loans with private mortgage insurance.
“Consumers previously declined because of the presence of mortgage insurance may now be eligible under HARP 2.0 because mortgage insurance companies have agreed to transfer the insurance to the new lender,” the regional bank said.
The bank’s mortgage unit funded $7.1 billion of single-family loans in 4Q, compared to $4.5 billion in 3Q.
Among residential funders, Fifth Third’s mortgage division, which is headquartered in Cincinnati, ranks 14th nationwide, according to figures compiled by National Mortgage News and the Quarterly Data Report.