Anyone wondering who's getting refinanced through Obama's 'Making Homes Affordable Program?' Well, it sure 'ain't me, or you, or just about anyone applying. Why? Because all these much hyped federal programs are VOLUNTARY! What the hell! We are giving trillions to the banks so they can do what exactly? Nothing, apparently. Obama's programs 'Making Home Affordable and Hope For Homeowners' are a big joke. The banks are making a killing on application fees, only to tell the unsuspecting homeowner 'Sorry, we can't help you. And, by the way, that 500.00 application fee is nonrefundable.' Here's how Americans are being scammed: 1) Even if you've met all the requirements of these programs, you will not get any real relief (modification) or qualify for refinancing. A realtor friend of mine whose home value is in the crapper and lost 50% of her income, was rewarded by Citimortgage with a decrease in her monthly payment by 11.00. Gee, thanks Citimortgage for your generosity. Those 11 dollars will really make a big difference in my life. Want to refinance? Guess again. If you are one of the millions who has private mortgage insurance, kiss any chance of a re-fi bye, bye. The banks are refusing to refinance anyone with PMI, knowing full well most people who need these programs, have PMI. It matters not a twit if your FICO scores are in the stratosphere, you will still be summarily be turned down if you have PMI. 2) Poor Fannie Mae and Freddie Mac! They lose billions on stupid investments, cry to the feds for help, get bailed out and then are put in charge of operating programs they know nothing about. It's enough to make a person want to commit suicide. Whoops! Sorry, Freddie Mac. These two entities can't distinguish a doorknob from an apple. Call them and complain about how their much vaunted programs are NOT working and they will tell you 'gee, we had no idea the banks were doing that.' Sheesh. As Sigourney Weaver opined in the movie 'Aliens'- IQs appear to have dropped dramatically since I left.' I wonder if this is willful ignorance. Willful or not, Mac and Mae are worthless to the homeowner. 3) Bargain basement appraisals. Ok, forget PMI for a moment. The other part of the scam is what I call 'Low-balling for dollars.' The one place where you should be able to get refinanced is with the bank that currently services your mortgage. They are the only place where having private mortgage insurance doesn't count against you. (the banks act like we elect to have PMI. They seem to forget, you are forced into taking it if you don't have 20% to put down). Ah, but you can bet your sweet little bippy, they know they are in the drivers seat on this one and they're not about to refinance a good paying customer at 4.50% when they can get 7%. So, how do they weasel out of 'making your home affordable?' They hire slash and burn appraisers — typically inexperienced, cheap folks who come from outside the geographic area of your home. And right on cue, they appraise your home at values so low, you would have to believe you've been living on the street under a cardboard box for the last 2 years instead of in an immaculate 4 bedroom home in Ann Arbor (home of the Maize and Blue). Make a big fuss and the bank will tell you it's those dastardly foreclosures that caused it. (The foreclosure thing—it's almost a mantra with banks. They seem to forget that they are the ones responsible for this mess to begin with). So, it's all about comparables, right? If you are unlucky enough to live in a neighborhood were there have been foreclosures (and who doesn't?) your house is worth the same as a double-wide trailer parked next to the airport. So, if it's all about comps, then why make me pay 340.00 for an appraiser to step foot inside my house? Any one, including the banks, can get comps off the internet for free. If you vociferously question the original appraisal, the banks will often order what they call a 'field review.' It's their way of appearing 'fair and balanced.' Don't be fooled, however. A 'field review' involves nothing more than some appraiser driving by your house and looking at the exterior. Then miraculously, through some strange inner appraiser gestalt thing, they are somehow able to tell the banks if the original appraisal was accurate. If you think this procedure may help you, then let me suggest several hospitals where you can admit yourself for treatment of your madness. The bottom line is this: the banks make big money on their application fees which you must pay upfront before they will lift a finger, and the appraisers make big bucks giving the banks what they want—super low values outside of the Making Homes Affordable guidelines. The banks continue charging their good customers higher interest rates, while they steal taxpayer money at less than 1% interest. It's a great deal —for the banks. I urge all those who despite having met all the requirements for 'Making Homes Affordable' were still turned down to call Fannie Mae and Freddie Mac. Call, write, e-mail your congress people. Contact Obama. This is HIS program. He said the buck stops with him, so hold him to it. No more volunteer programs for the banks. We own huge chunks of them, now. Geitner must make them lend or shut them down. Enough of this rip-off.
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