Whoops, I mean, State’s lending program helps absolutely no one one person, five months after unveiling

From the Globe:

A state effort to refinance subprime borrowers before they fall behind on mortgage payments has helped its first borrower.

Surely you remember the program. It was unveiled with great fanfare, back in July.

The purpose of the program was to assist homeowners in keeping their homes.

Specifically:

Subprime borrowers who are behind on their monthly payments by 60 days or less are eligible to refinance into 30-year mortgages with a fixed rate of 7.75 percent …

Again, it was to help “subprime borrowers”. Those who had been “taken advantage of” by lenders.

Well, no longer.

Again, according to the Globe:

The Home Saver program also has relaxed its eligibility requirements, said Kofi Jones, a spokeswoman for the Massachusetts Executive Office of Housing and Economic Development. She said applicants no longer will be required to demonstrate they were the victims of an unfair lending practice. They must simply show that their loan is unaffordable.

Wait, did you catch that?

No longer do you have to claim you were “taken advantage of”.

Now, apparently, all you have to do is say you can’t afford the loan.

Hmmm.

You know, a skeptic would say this was the state’s plan, all along.

A skeptic who was right, that is.

Even worse, is this.

Here’s what the state said, back in July.

Approximately 1,000 Bay State residents’ loans will be refinanced because of the program.

Er, I guess not.

The first borrower just qualified, five months later.

And, the state has only been able to find one other borrower to help.

How can this be?

All we’ve heard about over the past five months is how terrible things are for the average person, who took out a loan he/she couldn’t afford, who was taken advantage of, who needed our help, not our wrath.

How can it be that only one – one – person in the entire Commonwealth of Massachusetts has yet to qualify for the program?

* What was the point of this program?
* Why hasn’t it helped anyone?
* Does anyone really need help?
* Does anyone really have an idea of what’s going on?

Source: First borrower gets loan aid – By Binyamin Appelbaum, The Boston Globe

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