HARP 2.0 may be music to the ears of Orange County residents who have been struggling, but continuing, to make their home payments.
That's what Todd White, a home mortgage consultant for Wells Fargo Home Mortgage in Newport Beach, believes.
Some also believe Harp 2.0 has the potential to lead to the next huge refinance boom.
HARP 2.0, the second version of the federal government's Home Affordable Refinance Program, is designed to help some 5 million struggling homeowners refinance into a fixed-loan and a lower monthly payment. It targets people who have made their payments on time, but who have lost too much value on their home to refinance.
HARP 2.0 took effect for borrowers with a loan-to-value ratio of greater than 125% in February. A loan-to-value ratio, also known as LTV, is a measure of how much a home is actually worth compared with how much is owed.