Michelle Caruso-Cabrera is a welfare queen.
Well, kind of.
The CNBC anchor has an interesting little piece up on their site about how she, a well-paid TV personality, was able to take advantage of Obama’s “Making Homes Affordable” program — a scheme designed to help poor, distressed homeowners.
Of course, because of her political leanings it starts off with, “mine is a story of government intervention gone wrong, of well-meaning intentions unfulfilled,” which some might find grating, but the details are compelling:
You see, I qualified for President Obama’s Making Home Affordable Program. You should find that absurd.
A few months back interest rates were at record lows and I decided to refinance my fixed rate mortgage. I called Bank of America (BAC) my loan servicer, and after a couple of questions the nice guy who answered the phone told me I qualified for the new government program.
“That can’t be possible,” I said. “That program is for people in dire straits. It is meant to help people in trouble. I’m just trying to do a basic refi.”
He told me that yes, I absolutely qualified and directed me to the program’s Web site.
To get an MHA refi I had to be:
2. Current on my mortgage
4. In a loan that didn’t exceed 105 per cent of the value of my home
If I went with the program what did I get? Speed. The bank did no income verification and no appraisal. Instead the nice man on the phone just typed my address into a government database that told him the approximate value of my home.
The refi was done in a lightning-quick three weeks.
I comparison shop and I got the same rate that everyone else was offering: 4.8 per cent down from my then-rate of 6.7 per cent.
The scariest part, really, isn’t that she got a refi (good for her), but the part about there being no income verification or appraisal. Could that really be the standard for this program?
And to the matter of social justice, it is ridiculous that you have families having their chains jerked around, trying to get a loan mod to stay in their homes — in many times getting screwed out of thousands of dollars in the process — while others in a slightly different situation are just able to call up and get a refi, no questions asked.
Granted, it’s a different thing completely — refis and loan mods — and we also wonder why she actually needed this program to get a refi. She makes a lot of money and she isn’t much underwater, so what did the MHA program actually did for her?
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