The California Association of REALTORS® (C.A.R.) and the Silicon Valley Association of REALTORS® (SILVAR) commended U.S. Senators Barbara Boxer (D-CA) and Robert Menendez (D-NJ) this week for reintroducing the Responsible Homeowner Refinancing Act to Congress. The revised bill is aimed at helping more homeowners refinance their mortgage at lower rates.
"We applaud Senators Boxer and Menendez for reintroducing this bill and recognizing that it benefits all parties involved," said C.A.R. president LeFrancis Arnold. "Responsible homeowners who can refinance will avoid foreclosure and have more money in their pockets."
The Responsible Homeowner Refinancing Act was first introduced in May, but failed to advance in the Senate. The new version of the bill aims to streamline and align the refinance processes of Fannie Mae and Freddie Mac, making it easier for homeowners who are current on their mortgage payments but who have been previously unable to refinance to finally take advantage of record low interest rates. The proposed legislation would extend streamlined refinancing; waive loan-to-value ratios for existing, well-performing loans to participate in the program; make refinancing more affordable by eliminating up-front fees and appraisal costs; and improve competition for lenders looking to compete with the existing mortgage servicer.
"The Silicon Valley Association of REALTORS® supports the Responsible Homeowner Refinancing Act because it helps homeowners who have good credit and consistently meet their mortgage obligations, but who have been unable to refinance into lower interest rates because of constraints in Fannie Mae's and Freddie Mac's mortgage refinance guidelines," said SILVAR president Suzanne Yost. "Helping homeowners remain in their homes has to be a priority if we are going to move the housing market toward a long-term recovery."
There are nearly 13.5 million responsible borrowers in loans guaranteed by Fannie Mae and Freddie Mac who could benefit from refinancing at today's low interest rates. Supporters of the bill note that although recent changes to the Home Affordable Refinance Program (HARP) were a step in the right direction, they left in place barriers that will keep millions of borrowers trapped in higher interest loans. The revised version of the Responsible Homeowner Refinancing Act builds on these changes and further expands opportunities to access historically low interest rates for borrowers who make their mortgage payments on time.
"This bill is a win-win-win: homeowners will have more money in their pockets, Fannie and Freddie will see fewer foreclosures, and the housing market and economy will be strengthened," says Boxer.
The bill has received the support of industry groups, including the National Association of Realtors, Mortgage Bankers Association, National Association of Home Builders and the Center for Responsible Lending.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.