loanDepot survey finds that 51 percent of HARP borrowers have previously been turned down before successfully refinancing

FOOTHILL RANCH, Calif., Oct. 9, 2013 /PRNewswire/ -- A loanDepot.com, LLC (loanDepot), survey found that more than half of homeowners who refinanced through the Home Affordable Refinance Program (HARP) in the last year  had been turned down previously when they tried to refinance. HARP reforms announced in December 2011 removed a number of restrictions, and homeowners who previously were denied may now be eligible.

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"Many underwater HARP-eligible homeowners have been turned down before, and they now assume they can't get help," said Jim Svinth, Chief Economist for loanDepot. "Requirements have changed, making it possible for loanDepot to give financial relief to even more homeowners. If a homeowner is current on their mortgage payments, and the loan is owned by Fannie Mae or Freddie Mac, help is available." 

loanDepot has no maximum loan to value requirement on HARP loans, allowing even the most underwater homeowners  to access this valuable government-sponsored refinance program.

According to recent Federal Housing Finance Agency (FHFA) estimates, there are up to 2 million HARP-eligible borrowers who have little to no equity in their homes, and who could reduce their monthly payment if they refinanced. FHFA focus groups found that many homeowners don't realize they are eligible for HARP.

"Until I worked with loanDepot, each time that I attempted to refinance my mortgage, I was turned down," said loanDepot customer Adolph Ortega of Commerce City, Colo. "I almost gave up trying, but then I responded to an advertisement on the radio from loanDepot and the whole process was done smoothly."

loanDepot's survey found that 51 percent of respondents had been turned down before, and more than half of those had been turned down multiple times.  57 percent were turned down because their home was too far underwater and 17 percent said they had poor credit at the time.

Other findings from the loanDepot customer survey:

• 87 percent of borrowers are saving $1,200 or more a year after refinancing
  • 12 percent are saving $6,000 or more a year
• Most homeowners are using the savings to get their finances in order, with 43 percent using it to cover everyday expenses, such as gas and groceries, and 20 percent using it to pay off other debt.
• 49 percent of survey respondents had not previously tried to refinance. Their rationale was:
  • Were not aware of the HARP program
  • Didn't think they would qualify to refinance

loanDepot has helped thousands of homeowners reduce their monthly mortgage payment through HARP, which represents about 20 percent of loanDepot's current refinance loans.

The Home Affordable Refinance Program (HARP) is a federal refinance program to help responsible, underwater and near underwater homeowners refinance their mortgages to a lower rate. Through HARP, homeowners that have loans owned by Fannie Mae or Freddie Mac on or before May 31, 2009, and have been current on their mortgage payments, can refinance at today's lower rates.

Webinar
loanDepot will host a free webinar to explain how HARP 2.0 can help underwater homeowners. The webinar is Wednesday, Oct. 16 at 5 p.m. PDT. Learn more or register at www.loandepot.com/webinar.

loanDepot survey
loanDepot surveyed a random sample of 253 HARP borrowers who refinanced through loanDepot between Dec. 1, 2012 and Aug. 1, 2013.

About loanDepot
Launched in 2010 following the U.S. financial meltdown, loanDepot.com, LLC (loanDepot ) was founded on the principles of fair and ethical lending, with a customer-centric strategy to deliver great service and competitive rates. Led by industry veteran and successful entrepreneur Anthony Hsieh, an innovator in the mortgage lending industry, loanDepot is one of the fastest growing independent mortgage originators and servicers in the United States. Offering a full suite of loan products to serve the needs of today's home buyers and homeowners, loanDepot is licensed in all 50 states and is an approved seller and servicer for Fannie Mae, Freddie Mac and Ginnie Mae. loanDepot.com, LLC, NMLS # 174457 Learn more at www.loanDepot.com.

Contacts:

Teri Felix
949-380-3224
pr@loandepot.com

Beth Oates
949-470-6360
pr@loandepot.com

SOURCE loanDepot.com, LLC