A Bloomberg article yesterday reported that Bank of America is putting existing customers who call in to apply for the HARP 2.0 refinance program, onto a list for a 60-90 day call back to begin the application process, according to two anonymous sources at the bank.
The delays by Bank of America will likely see many of the existing customers, who have loans backed or owned by Fannie Mae or Freddie Mac, and serviced by Bank of America (not owned by BofA), apply to refinance their mortgage elsewhere.
After President Obama's State of the Union speech, where he promoted his plan to allow millions more American homeowners the opportunity to refinance their mortgage and take advantage of today's record low mortgage rates despite negative equity or credit blemishes, banks like Bank of America have experienced an surge in inquiries from existing customers looking to apply for this program.
The President said this in his speech:
“That’s why I’m sending this Congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage, by refinancing at historically low interest rates. No more red tape. No more runaround from the banks. A small fee on the largest financial institutions will ensure that it won’t add to the deficit, and will give banks that were rescued by taxpayers a chance to repay a deficit of trust.”
To find out if a mortgage is owned or guaranteed by Fannie Mae or Freddie Mac, homeowners can check on these two websites:
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