Anyone here work in the home mortgage biz? [View all]

[YeahSureRight]

The reason I ask is because my Mortgage Company contacted, Wells, me a few weeks ago to refinance my home loan @ 5.5% fixed to 3.6% fixed for FREE. MMMM ok nothing is free and I was skeptical at first.

I was not upside down on my loan but I was about $120k down from what I paid for the house, I put down over 25%. I was only late once by 7 days on 1 payment in 6 years so a good customer more or less and low risk for default. I was not a HARP candidate that was for sure. So when Wells called I was surprised and when I asked why I was so lucky that they would give me a new loan for free at a lower rate they said it was part of the HARP program and that the Gov was paying all the costs.

OK says I send me the paperwork before I agree to anything; the devil is in the details. So I go ahead and do it and now it is all said and done, lucky me and lucky Food Bank they got a chunk of the mortgage payment I got to skip too.

So this got me to thinking what really went down…..The banks used HARP and other programs that were put in place to help people keep their homes as a way to clear the books, get rid of all the bad and risky loads on their books. Then when the masses dare ask so we gave you all this money to keep people in their homes but we see no evidence of this, only lots of people who once had homes now homeless. So fearing the people, HARP is suddenly extended and good customers like me get a free refi with low rates and when the banks are asked again who did they help they can say see why we helped millions of our GOOD customers refi and stay in their homes. Banks get rid of the bad/risky loans and help those who really did not need it and they and the Gov will look like heroes to the masses. Win/Win for the banks and Wall Street.

So my question for those in the mortgage industry…..
Am I just being cynical or did the Gov want the banks to help those who did not really need help?

Oh yeah thanks taxpayers for the free refi!