[quote=sdrealtor][quote=briansd1][quote=CA renter] Now, they are going to take the worst of the worst and refi those into govt-backed loans.

The whole thing stinks.[/quote]

The very worse, the banks have already been refinanced.

So why not be fair and balanced and refi homeowners who have been paying faithfully every month into lower rates loans? Lower rates for homeowners would actually improve the quality of the portfolio.

The way I see it is so that average homeowners who can’t refi get the benefits of low rates also. That would greatly help the economy.[/quote]

Exactly! I refinanced this year and because I am self employed it was excruciatingly difficult. It took over a year to do and I had to hold off taking on any debt or buying a car until it was done.

I refinanced with the bank that has held my loan for 7 years and I never missed a payment or was late. My FICO scores were mid 800’s (nearly perfect). That bank has all my a/c’s, all my kids a/c’s, my IRA, my HSA and a brokerage a/c. The loan was for 41% of the current value of my house. My payment went down over $500/month. How was this not a slam dunk refi? A perfectly performing low LTV loan from a solid borrower whose payment was going to drop over $6,000 per year. My loan closed on March 31st. There was a new car in my driveway by noon on April 1st.

I gotta beleive there are lots more people like me who didnt make it through that gauntlet.[/quote]

sdr,

While I don’t have any hard numbers (or even soft numbers, for that matter), it’s unlikely most of the borrowers they’re proposing to refi have the same profile as you (low LTV, 800+ FICO, etc.).