There have been revisions made to the Obama administration's 3-year-old Home Affordable Refinance Program, but these have yielded mixed results for homeowners, analysts and mortgage professionals say.Â Some responsible homeowners are indeed getting lower interest loans despite owing far more than their homes are worth.Â Conversely, others have loans that don't qualify, or they are required to jump through hoops that the plan was supposed to eliminate - such as on-site appraisals and extensive paperwork.
Also, the homeowners who are getting these new loans are being stuck with higher rates than necessary, often half a percentage point or more. That's because banks are refinancing only their own borrowers instead of competing against one another - which would cause rates to go down.
Some experts say that the banks should charge lower than market interest rate because the new version of the program results in less work and less risk for them... but instead, they are charging more.
Seems like just another way for the banks to make sure they feather their own nest, so to speak.Â Another example of an effort to assist the suffering homeowner ending up to bejust another way the banks figure out how to stick it to us . . . again.