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FICO score or credit reports negatively affected by HARP participation?

New Contributor

FICO score or credit reports negatively affected by HARP participation?

I'm having trouble finding a clear answer (if one even existsSmiley Happy) on whether availing oneself of the "Making Home Affordable" refi (http://www.makinghomeaffordable.gov/about.html) has a negative effect on FICO scores/credit reports, or even a different effect from a normal refi outside of this program.  Basically, I'm wondering if it shows up as a baddie or is somehow viewed as a negative on a person's credit report.

 

Does anyone have any real-world insight or experience about the HARP and FICO/credit report impact?

 

 

Message 1 of 5
4 REPLIES
Moderator Emeritus

Re: FICO score or credit reports negatively affected by HARP participation?

Whereas there is definitive and growing evidence that a Home Affordable Modification can have a significant negative impact on credit scores, there don't appear to be any reports of a negative effect from the Home Affordable Refinance program.
Message 2 of 5
Super Contributor

Re: FICO score or credit reports negatively affected by HARP participation?

Yeah the refinance program is just that, it's a normal refinance, just happens to be into a mortgage program that is allowing much higher LTV's than normal mortgage programs.  It won't be noted on a credit report that it's under the HARP program.
Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime) since 2002, based in Irvine, CA and lending in all 50 states

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Message 3 of 5
Moderator Emeritus

Re: FICO score or credit reports negatively affected by HARP participation?

I just reviewed the Consumer Data Industry Association guidelines that cover the reporting of the Making Home Affordable program, and there is no special credit report notation that applies to the Home Affordable Refinance.
Message 4 of 5
New Visitor

Re: FICO score or credit reports negatively affected by HARP participation?

The best I can tell is that is more of a loan modification vs. refi question.

 

This forum and article are the best info I could find.  It is a good question!

 

http://www.debtconsolidationcare.com/getting-loan/refinance-vs-loanmodification.html

 

http://www.spendonlife.com/blog/loan-modification-hurts-credit

Message 5 of 5