The good ole days...

From Broker's Outpost a forum for mortgage brokers regarding a recently closed refinance:

I just closed this week on a RENTAL property- NO APPRAISAL, STATED INCOME SELF EMPLOYED, STATED ASSET, 105% LTV (based on automated value). Original loan HAD Mortgage Insurance even! The customers did not have a great credit score, but as you may know the TOTAL adjustments are capped at 1.75%.

It was like 2005 all over again.

In case you are wondering how this is possible, Here is Freddie Mac's data regarding the program in question called "Relief Refinance Mortgages".

Both the Same Servicer and Open Access options under the Relief Refinance Mortgage offering allow LTV ratios up to 125 percent, unlimited TLTV/HTLTV ratios, and relief from standard mortgage insurance requirements to provide qualified borrowers with expanded refinancing opportunities.

They figure they are backing the loan anyways so they might be able to improve their book by refinancing people at todays lower rates. As far as the bubble era no underwriting, I think drinkers call it "Hair of the dog that bit you".

The "Obama Plan" refinance and loan modification details.

There is a ton of data to go over for both the loan modification program and the refinance portion of the Homeowner Affordability and Stability Plan.

The best place to start is of course the official website http://www.financialstability.gov/

For borrowers wanting the simplest guide to whether they generally qualify for a loan modification or refinance click here.

For a bit more detail oriented people here are the program fact sheet, summary of guidelines and modification program guidelines.

But the real meat and potatoes for true understanding the depth and breadth of the program is really found in reading the underwriting guidelines from Fannie Mae and Freddie Mac.

For Fannie Mae existing home loans they have the Home Affordable Refinance guidelines. For Fannie Mae serviced loans and even Non-GSE loans you can find the Fannie Mae Home Affordable Modification Program guidelines and also alternate options for the servicers for people who don't qualify for either option. Freddie Mac is a bit less detailed, they have two different places for refinance data, a summary type page here and a slightly more detailed guide here. The loan modification page which is linked to from their servicing guide points to here which is the old loan mod program from last year. Freddie has some work to do apparently.