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HARP Refi Numbers Dwindling Despite FHFA?s Efforts

Investor Update
November 27, 2015

The total number of loans refinanced through the Home Affordable Refinance Program (HARP) to an unexpected turn downward in the third quarter.

According to the Federal Housing Finance Agency (FHFA) third quarter Refinance Report, a total of 25,824 HARP refinances were completed between July and September, down from the 31,561 refinances completed from April to June. In addition, HARP volume accounted for 5 percent of total refinance volume in the third quarter.

The FHFA reported that over 3.3 million borrowers have refinanced through the HARP program, which was enacted in 2009 to help homeowners that are not able to refinance due to falling home values.

The Agency approximates that over 429,000 borrowers nationwide have a financial incentive to use the HARP program but still have not.

HARP refinances were highest in Florida, California, Illinois, Michigan, and Georgia, the FHFA stated.

The report showed that Florida, Ohio, Illinois, Michigan, and Georgia are the top five states with the most “in the money” borrowers that are able to use HARP. These borrowers could save an average of $200 per month on mortgage payments.

FHFA deems borrowers to be “in the money” if they meet HARP eligibility requirements, have a mortgage balance of $50,000 or more, have a remaining mortgage of no more than ten years, and an interest rate at least 1.5 percent higher than current market rates.

“FHFA is continuing its efforts to reach HARP-eligible borrowers and has held town-hall style events with local community leaders in Chicago, Atlanta, Detroit, Miami, Newark and Phoenix to get the word out about HARP,” the report stated.

Those who refinance using HARP are typically have a lower delinquency rate compared to those who are eligible for the program but choose not to use it, the FHFA says.

Of all HARP refinances for underwater borrowers (those with a loan-to-value ratio greater than 105 percent), 28 percent resulted in 15-and 20-year mortgages. The FHFA noted that this method helps build equity for borrowers quicker than 30-year mortgages.

The FHFA cautioned potential refinancers that “HARP will sunset on December 31, 2016.”

Click here to view the full report.

Source: DS News

CEO

Alan Jaffa

Alan Jaffa is the Chief Executive Officer for Safeguard Properties, steering the company as the mortgage field services industry leader. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Alan joined Safeguard in 1995, learning the business from the ground up. He was promoted to Chief Operating Officer in 2002, and was named CEO in May 2010. His hands-on experience has given him unique insights as a leader to innovate, improve and strengthen Safeguard’s processes to assure that the company adheres to the highest standards of quality and customer service.

Under Alan’s leadership, Safeguard has grown significantly with strategies that have included new and expanded services, technology investments that deliver higher quality and greater efficiency to clients, and strategic acquisitions. He takes a team approach to process improvement, involving staff at all levels of the organization to address issues, brainstorm solutions, and identify new and better ways to serve clients.

In 2008, Alan was recognized by Crain’s Cleveland Business in its annual “40-Under-40” profile of young leaders. He also was named a NEO Ernst & Young Entrepreneur Of The Year® Award finalist in 2013.

Esq., General Counsel and EVP

Linda Erkkila

Linda Erkkila is the General Counsel and Executive Vice President for Safeguard Properties, with oversight of legal, human resources, training, and compliance. Linda’s broad scope of oversight covers regulatory issues that impact Safeguard’s operations, risk mitigation, strategic planning, human resources and training initiatives, compliance, insurance, litigation and claims management, and counsel related to mergers, acquisition and joint ventures.

Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. She has practiced law for 25 years and her experience, both as outside and in-house counsel, covers a wide range of corporate matters, including regulatory disclosure, corporate governance compliance, risk assessment, compensation and benefits, litigation management, and mergers and acquisitions.

Linda earned her JD at Cleveland-Marshall College of Law. She holds a degree in economics from Miami University and an MBA. Linda was previously named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.

COO

Michael Greenbaum

Michael Greenbaum is the Chief Operating Officer of Safeguard Properties, where he has played a pivotal role since joining the company in July 2010. Initially brought on as Vice President of REO, Mike’s exceptional leadership and strategic vision quickly propelled him to Vice President of Operations in 2013, and ultimately to COO in 2015. Over his 14-year tenure at Safeguard, Mike has been instrumental in driving change and fostering innovation within the Property Preservation sector, consistently delivering excellence and becoming a trusted partner to clients and investors.

A distinguished graduate of the United States Military Academy at West Point, Mike earned a degree in Quantitative Economics. Following his graduation, he served in the U.S. Army’s Ordnance Branch, where he specialized in supply chain management. Before his tenure at Safeguard, Mike honed his expertise by managing global supply chains for 13 years, leveraging his military and civilian experience to lead with precision and efficacy.

CFO

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard Properties. Joe is responsible for the Control, Quality Assurance, Business Development, Marketing, Accounting, and Information Security departments. At the core of his responsibilities is the drive to ensure that Safeguard’s focus remains rooted in Customer Service = Resolution. Through his executive leadership role, he actively supports SGPNOW.com, an on-demand service geared towards real estate and property management professionals as well as individual home owners in need of inspection and property preservation services. Joe is also an integral force behind Compliance Connections, a branch of Safeguard Properties that allows code enforcement professionals to report violations at properties that can then be addressed by the Safeguard vendor network. Compliance Connections also researches and shares vacant property ordinance information with Safeguard clients.

Joe has an MBA from The Weatherhead School of Management at Case Western Reserve University, is a Certified Management Accountant (CMA), and holds a bachelor’s degree from The Ohio State University’s Honors Accounting program.

Business Development

Carrie Tackett

Business Development Safeguard Properties