CNBC on-air personality Michelle Caruso-Cabrera got a home refinance loan from the Obama administration's Making Home Affordable program, she says.
This despite the fact that she doesn’t belong in the demographic the program was designed to help.
A few months back interest rates were at record lows, Caruso-Cabrera decided to refinance her fixed rate mortgage. Bank of America, her loan servicer told her that she qualified for the new government program.
"That can't be possible," Caruso-Cabrera protested on her CNBC blog.
"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."
Despite the fact that she is far from needy, Caruso-Cabrera got the refi loan with no income check or home appraisal, she notes.
All she had to do was be employed, current on her mortgage, and in a loan owned by Fannie Mae or Freddie Mac that didn't exceed 105 percent of the value of her home.
“Mine is a story of government intervention gone wrong, of well-meaning intentions unfulfilled,” Caruso-Cabrera bemoans.
“When banks or politicians start bragging about ‘all the people who have been kept in their homes,’ be suspicious.”
The Making Home Affordable loan modification program was crafted this year to help as many as 4 million struggling borrowers save their homes, Bloomberg reports.
The Obama administration says more than 200,000 trial loan modifications have begun, and is setting a goal of starting at least 500,000 by Nov. 1.
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