How’s Obama’s HARP Playing?

The Wall Street Journal reports on the Home Affordable Refinance Program, or HARP.

It is supposed to help homeowners with little equity in their homes. It’s another political plan to gum up the free market and make it less efficient.

So far, only 60,000 borrowers have refinanced through the program.

It’s only for homeowners who are making their mortgage payments.

You have to owe more than 80% (but less than 125%) of your home’s value and your mortgage loan needs to be owned or guaranteed by state-backed mortgage-finance companies Fannie Mae and Freddie Mac.

Big surprise! This program requires a ton of paperwork and there are a ton of complications and this clunker of a bailout is about as effective and efficient as the Cash for Clunkers program.

The WSJ says:

Treasury officials say that the program was slowed by a plunge in mortgage rates that sparked a flood in refinance applications just as the administration rolled out the program. Thus banks were busy refinancing “run-of-the-mill” mortgage applications before moving on to HARP applications, which could be more complex to process. By then, mortgage rates had risen.

Officials say that the program is expected to ramp up more fully later this year as it irons out technical hurdles. Logistical problems, from difficulty addressing second mortgages to mortgage insurance, have raised confusion and contributed to delays as borrowers work with their lenders who are charged with administering the program.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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