WASHINGTON, DC -- (Marketwire) -- 05/24/12 -- A proposed bill to streamline and align the refinance processes of Fannie Mae and Freddie Mac may soon make 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.
NAR President Moe Veissi testified today before the Senate Banking, Housing and Urban Affairs Committee in support of the "The Responsible Homeowner Refinancing Act of 2012," introduced in Congress earlier this month by Sens. Barbara Boxer, D-Calif., and Robert Menendez, D-N.J.
"As the leading advocate for homeownership, Realtors® knows that helping consumers remain in their homes must be a priority if we are going to move the housing market and our nation from a fragile recovery to long-term prosperity," said Veissi, broker-owner of Veissi & Associates Inc., in Miami. "Eliminating the refinancing barriers homeowners face with Fannie Mae and Freddie Mac loans will help bring them relief by lowering monthly payments and reducing the risk of default."
NAR supports the "Responsible Homeowner Refinancing Act" because it offers relief to responsible 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.
Veissi testified that streamlining the process and improving access to simple, low-cost refinancings will help put thousands of dollars back into the pockets of hardworking families who have stayed current on their mortgage payments and help boost the nation's economy. Refinancing into more affordable mortgages will also go a long way to helping homeowners avoid foreclosure and aid in the recovery of Fannie Mae and Freddie Mac, he said.
Veissi said that while Fannie Mae and Freddie Mac have recently made improvements to their refinancing guidelines, the legislation will help codify many of the those improvements and remove additional barriers that are preventing borrowers from currently refinancing their loans.
The proposed legislation would extend streamlined refinancings; waive loan-to-value ratios for existing, well-performing loans; make refinancings more affordable by eliminating up-front fees and appraisal costs; improve competition for lenders looking to compete with the existing mortgage servicer; and establish penalties for second lien holders and mortgage insurers who block the refinance process.
Veissi said the changes would extend refinancing opportunities to many underwater borrowers and help alleviate existing housing cost pressures and stimulate the economy.
"Realtors® thank Sens. Boxer and Menendez for their efforts to bring relief to millions of homeowners who continue to struggle through lower home values and lost equity, yet remain current on their mortgage obligations," Veissi said. "We believe this new legislation is good for homeowners and tax payers and will go a long way toward kick starting the housing market and economy."
In his testimony, Veissi also called on Congress to eliminate the use of Fannie Mae and Freddie Mac guarantee fees, or g-fees, as a means to pay for non-housing programs. He said Realtors® were strongly opposed to the use of a 10-basis point increase last year to pay for a two-month extension of payroll tax benefits, which will impact borrowers for the next 10 years who are looking to refinance their mortgages.
"We applaud Sens. Menendez and Boxer for not utilizing the guarantee fee as a pay-for to support the proposed legislation, which makes refinances more attractive by removing costs barriers associated with the process. Increasing the g-fee, which is passed on to consumers through higher interest rates, is counter-productive and effectively adds additional cost barriers," said Veissi.
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
Information about NAR is available at www.realtor.org. News releases are posted in the website's "News and Commentary" tab. NAR supports public policies and policymakers who support the positions of Realtors® and their clients and customers on private property rights, housing issues and homeownership, regardless of political party affiliation.
For further information contact:
|03:38 AM||"Places2Be" Project to Boost European Leadership Around FD-SOI -- The Faster, Cooler, Simpler Chip Technology|
|03:05 AM||Sofia Vergara Wears Jacob Arabo Jewelry to Good Morning America|
|03:01 AM||Birst's Born-in-the-Cloud BI Platform Provides 4moms With Quick Access to Enterprise-Caliber Business Insight|
|03:01 AM||Metamarkets Named a Finalist for the 2013 Red Herring Top 100 North America Award|
|02:00 AM||Kirkland Lake Gold Inc./December 31st Reserve & Resources Update; Significant Increases on the Former JV Properties|
|02:00 AM||Ithaca Energy - Increase in Director Shareholding|
|02:00 AM||u2t Photonics Unveils the World's Fastest Balanced Photodetector With 70 GHz 3dB Bandwidth|
|01:50 AM||Addex Validates Potential Efficacy Biomarker for Phase 1 Trial of its GABA-B Positive Allosteric modulator, ADX71441|
|01:13 AM||Fozzy Brings Shared Hosting Services to the US|
|01:00 AM||Fozzy Brings Shared Hosting Services to the US|
|01:00 AM||Australia Offers Opportunities for Consumer Goods Companies Across A Wide Range of Sectors|
|01:00 AM||TyMetrix Releases Advanced User Interface for TyMetrix 360 Enterprise Legal Management Platform Incorporating Intuitive Workflow Features for Quick Decision-Making|
|12:01 AM||Science Media Partners and IBIA Announce connect:ID Expo|
|12:01 AM||City University of Hong Kong Selects Echo360 to Create an Active Learning Environment With Video|
|12:01 AM||Chemical Industry Ranks Among Top Five in Value Creation|
|Mon, May 20, 2013|
|08:21 PM||The 14th Annual BioEquity Europe Conference Features 96 Innovator Companies With Differentiated Products, Upcoming Milestones and Partner-Ready Assets|
|07:20 PM||Wipliance Makes CE PRO 100 List|
|07:00 PM||WildTangent Accelerates Mobile Momentum With ASUS|
|06:59 PM||Natoma Technologies Celebrates 15 Years as a Trusted Partner to the State of California|
|06:58 PM||MI&T Offers Hurricane Sandy Victims in New York and New Jersey Advice on Mold|
|06:55 PM||Roomlinx Reports 2013 First Quarter Results and Business Strategy Outlook|
|06:00 PM||Nidec Corp. Tops Institutional Investor's Inaugural All-Japan Executive Team Survey|
|06:00 PM||Marin Software Wins 2013 San Francisco Business Times Tech and Innovation Award|
|05:50 PM||The Perfect Gift for Dad: A Relaxing Visit to Massage Heights|
|05:25 PM||Feihe International Announces Record Date and Meeting Date for Special Meeting of Shareholders|
|05:24 PM||Presidential Honor Awarded to RIM Logistics|
|05:10 PM||The Crohn's & Colitis Foundation of America's Day on the Hill Goes Virtual|
|05:08 PM||Sustainable Energy Announces Extension of $1.5M Standby Equity Commitment by Doughty Hanson Technology Ventures|
|05:03 PM||Active Duty Military and Veterans: Get More Than 38,000 Memorial Day Discounts Now at MilitaryAndVeteransDiscounts.com|
|05:03 PM||Cartridge World Offers Free Resume Printing for New Grads|
|More Press Releases From Marketwired News Releases|