Robert Menendez

This month, I reintroduced my bill to help responsible homeowners refinance at today’s low interest rates. While it is only a piece of the solution, I believe it is the right thing to do for our middle class homeowners and communities.  As I prepare for that debate in Washington, I’d like to hear from you. Please take a moment to learn more and answer a few questions.

The Responsible Homeowners Refinance Act

There are more than 10 million homeowners with loans guaranteed through Fannie Mae and Freddie Mac who could benefit from my bill. They are paying interest rates above 5%, but can’t refinance at toda'ys low rate of about 3.5% because of barriers and hurdles.

My bill has 3 simple goals:

• Knock down barriers so that borrowers who have been making their payments can access simple, low-cost finances, regardless of how much they owe on their loans. 

• Inject competition so homeowners can shop for the best deal.  

• Remove unnecessary red tape and frustrating hurdles that keep responsible homeowners trapped in high interest loans.

Here’s how we get there:   

• Extend streamlined refinancing for Fannie and Freddie borrowers regardless of how much they owe compared to the value of their home
• Eliminate up-front fees on refinances
• Eliminate appraisal costs for all borrowers
• Remove additional barriers to competition so that your current mortgage company doesn’t have a monopoly on your refinancing

My plan is good for both taxpayers and homeowners since reducing homeowners’ mortgage payments also reduces default rates and foreclosures, which in turn reduces Fannie and Freddie’s reliance on taxpayer bailouts.

It would put thousands of dollars back into the pockets of hard working New Jersey families a year, boosting our economy and helping middle class families who are trying to pay their bills and keep their homes.

As I prepare for this debate in Washington, I’d like to hear from you. Please take a moment to answer a few questions in the right-hand column.

Thanks for your feedback.