HARP 3.0: Non GSE Loans?


Rumors are starting to surface that if and when a ‘HARP 3.0’ program is unveiled it will include non-GSE loans. As one commenter told us, “There are a lot of Alt-A loans that look just like GSE loans, but went to private investors.  Why should they be punished because their loan was sold to the wrong investor?” Of course, if it’s a government sponsored program, the big question (as always) remains: where does the money come from to fund it? It’s no secret that alt-A is a loan category that once catered to many self employed borrowers and professionals who made their money from sales and lived on bonuses. Today, I would guess that less than 10 firms nationwide are actively making alt-A loans. And if they are, these mortgages are being held in portfolio.

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