Anyone here work in the home mortgage biz?

[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!

[dipsydoodle]

1. Out of curiousity

did you change the repayment period or keep as per existing ?

[YeahSureRight]

2. I could have kept it at 30 but I took 25. I could have also done 20, 15, 10 and 5 year if

I had wanted to.

[vt_native]

3. You are most welcome

Fellow Citizen

[flvegan]

4. What exactly did you get for free?

Something else in the terms of your agreement? Was this a true refi or a modification?

[YeahSureRight]

6. True Straight Refi the backed out 650 in fees so I paid zero at a closing by mail

it was almost like some one was paying Wells the fees.

[flvegan]

7. That's pretty impressive.

The $650 would likely have been the title work, doc stamps (don't know where you are) or other recording fees, policy endorsement. You seem to have gotten a good deal and the lender got an almost guaranteed performing loan for a very, very long time.

Congrats!

[DirkGently]

5. I got one too. Not in distress, but suddenly the lender was

winging good refi offers at me, calling, e-mailing. They used an outside lender, then took the servicing right back. It was an actual good deal, knocking $400 /month from my payment. No big fees, no tricks, all despite a lack of equity.

I think they're meeting quotas now. Refinancing those who didn't get slammed that badly in the first place.

[MiniMe]

8. I think banks are worried that you will refi somewhere else

Not in the industry, but it makes sense. The banks make money off your interest. If you get a better deal somewhere else, they will lose that income. So it isn't only because it is good for you, they are protecting themselves, and trying to keep your business.

[KG]

9. there had to be financial benefit it for them. banks don't do favors from the kindness of their

cold corporate hearts.

[DirkGently]

10. Sure. HAMP / HARP had incentives.

Not even sure what. There was some kind of carrot, but no stick.

By ignoring the borrowers who were really in trouble, waiting for the smoke to clear, and tossing some refis to mildly underwater borrowers with an obvious ability to pay, they can claim they did something, lose nothing, and carry on in the same old way.

This is all we get. Help for those with little to no need. It's the core of what's wrong with the way we allow power and wealth to accumulate.

[YeahSureRight]

11. and that is what pisses me off those who really needed the help did not get it

I was not going to even refi the loan I had was low and I was not having any problems making payments.

I wanted my tax dollars to help those who did need it not people like me.

A loss on my home is a tax write off nothing more.

I am glad I got it and others have too but it still don't make it right.

So I will increase my donation to the food bank each month, it is the least I could do.

[galileoreloaded]

12. your 5.5% loan made them maybe 1-1.5% over federal funds. Today, they pay nothing for the free money

with marketmakers like Wells borrowing at -.5% and make 3.6%. It's all profit for the bank courtesy of senior citizens savings (the value of their dollar denominated savings).

you are welcome.