Proposed Legislation:
Two U.S. Senators have reintroduced legislation to help homeowners refinance into lower interest mortgages. The bill,The Responsible Homeowner Refinancing Act of 2013, removes the barriers preventing the Fannie Mae and Freddie Mac borrowers from refinancing their loans at the lowest rate possible.
The legislation, introduced by Robert Menendez (D-NJ) and Barbara Boxer (D-CA) had failed to pass the 112th Congress. If passed it would direct the GSEs to require the same streamlined underwriting and associated representations and warranties under the Home Affordable Refinancing Program (HARP) to new servicers who now face stricter underwriting guidelines fear greater risk from putbacks and loan repurchases than do the current servicers who already have the risk. This would level the playing field and unlock competition between banks for borrowers' business.
Typically, I would summarize the details of this proposed legislation; however, it is in its initial stages and there is no need to raise hopes. Hopefully, it will include extending the dates on HARP program past the current expiration 12/31/2013; perhaps provide language for the borrowers who are underwater and not currently backed by Fannie Mae and Freddie Mac; and finally extend the dates of eligibility. Currently borrowers are only eligible for HARP if their loan is backed by Fannie Mae or Freddie Mac and purchased by the entities prior to June 2009.
Keep in mind, my thoughts are only my thoughts.
Thanks for reading,
Craig Turley
If you are a homeowner in Arizona or California, please feel free to reach out to me to find out your refinance eligibility status. It takes 5 minutes.
