No. It is narrowly tailored to keep families in their homes. For example:
1. Only primary residences are eligible: NO speculators, investment properties, second or third homes will be refinanced.
2. Investors and lenders must take big losses first in order even to participate. The owner of the old mortgage can get a maximum of 90% of the current value of the home (which presumably will be considerably less than the value of the original loan). In many cases the loss will be significantly greater, but 10% is the minimum.
3. In addition, lenders must waive any penalties or fees, and help pay for the origination and closing costs of the new loans.
4. Most homeowners will have seen the equity in their homes disappear before being able to refinance under this program. In addition, the FHA will get a portion of any future profits on the house, to make sure the government recoups its investment over the long run.
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Provided by: Steve Linnin
http://www.linnin.info
