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FBN's Liz MacDonald breaks down how big banks will reap the benefits of the governments refinance program.
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-- wants to help underwater homeowners but one big government housing program is delivering big bucks but not just a homeowners but well Tim banks.
-- McDonald's -- -- the Mac's bottom line is win why is this a shocker yet this is terrible yet again right -- eleven million homeowners are underwater.
And here's what is happening essentially we saw that big mortgage foreclosure settlement point five billion dollars well guess what most mortgages are not going to be able to use that.
More that foreclosure settlement because -- eight.
What's happening eagle over to the home affordable refinancing project program that's harp.
Right as we're seeing there is -- a lot of homeowners are trying to get their loans refinance there.
But lo and behold the big banks have a monopoly on that business -- gonna -- Wells Fargo JPMorgan Chase Citigroup.
Bank of America and US Bancorp very active in the harp program and affects three quarters of all refinance mortgages are done with the existing lender.
And the problem is disease refi mortgages become with higher interest rates than regular of course and more fees.
Alan Bell on the other side of it is these banks -- in the business to make money to so.
They can't give these loans away for free selling out one hand we say the banks to making money again but that's -- that's positive additional there yet and you should too with its -- market reality a lot of mortgage lenders got flattened.
During them housing crisis and so these are the last guy standing anyone to see the mortgage market.
But it's gonna come with a price -- and price tag -- once pocketing that money are gonna be the banks to guess that's that is at least him.
These loans are being and somebody -- -- sign yet that it's.
Not -- now but somebody else out there is gaining three point 673 point seven -- interest rate on the 32 point nine I've fifteen.
Liz MacDonald on our bottom lying to get that somehow.
