United Guaranty, the mortgage insurance subsidiary of AIG (AIG: 23.12 -1.78%), said Monday it refuses to accept all of the new HARP refinancing terms based on fears it will end up on the hook for fraudulently written or bad loans.
United Guaranty responded to HousingWire after Bloomberg News said the mortgage insurer refuses to provide blanket waivers on reps and warranties for mortgage lenders trying to get loans through the HARP process. Reps and warrants force originators to buy-back loans that were either poorly or fraudulently underwritten.
The appeal of HARP 2.0 is the fact it gives lenders
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