In addition to the other parts of mortgage underwriting process — such as verifying employment and determining the borrower's ability to afford the monthly payment — lenders traditionally required 20 percent down to ensure the borrower had some of their own money committed before the bank would provide a loan. (usmi.org)
It's possible that the call center representative to whom you're speaking is neither knowledgeable about HARP, nor the actual mortgage underwriting process. (themortgagereports.com)