Fresno Business Journal: Costa rolls out homeowner refinancing bill

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Published on Thursday, 11 October 2012 11:15
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Fresno Business Journal:

Costa rolls out homeowner refinancing bill
Published on 10/10/2012 - 2:17 pm
Written by Michael Kincheloe

Flanked by members of the Fresno real estate community, Rep. Jim Costa reveals legislation to help homeowners with refinancing..

Rep. Jim Costa met with the media today to announce new legislation that will allow responsible homeowners to take advantage of current low interest rates on mortgages.

Flanked by members of the local real estate community, the Fresno Democrat explained that the Responsible Homeowner Refinancing Act would remove barriers that keep homeowners with loans guaranteed by Fannie Mae or Freddie Mac from refinancing, leveling the playing field to allow banks to compete for borrowers’ business.

 “Home ownership is part and parcel of the American dream,” Costa said. “Foreclosure rates in our valley have been among the highest in the nation. Homeowners and their families deserve a second chance.”

The legislation would permit competition between the borrower’s current lender and a lender that might offer a better deal. It would also ensure that homeowners who have a mortgage with Fannie Mae or Freddie Mac have access to simple, low-cost refinancing, regardless of the level of equity they have in their home.

More than 13 million Americans currently hold mortgages backed by Fannie Mae and Freddie Mac who could benefit from refinancing. Costa said that this bill removes hurdles and cuts through red tape, resulting in fewer foreclosures.

“Fewer foreclosures mean that Fannie Mae and Freddie Mac will need fewer bailouts in the future,” Costa said, smiling. “This legislation will allow homeowners to focus on their future rather than next month’s house payment.”

Costa was introduced at this morning’s event by Don Scordino, past president of the Fresno Association of Realtors. He was joined by Dan Hawkins, current president of F.A.R., Gerard Lozano, F.A.R.’s government affairs director, and Olivia Hastings, a Fresno realtor and president of the Central California Association of Hispanic Real Estate Professionals.

“Current home loans are hard to get,” Hawkins said. “This new plan eliminates fees and employment and income verification.”

The legislation prohibits Fannie Mae and Freddie Mac from charging up-front fees to refinance any loan they already guarantee, and eliminates employment and income verification from homeowners who have demonstrated a commitment to making their payments on time.

Costa’s legislation is a companion bill to Senate legislation backed by Democratic Sens. Barbara Boxer and Robert Menendez.

“It’s a win-win for our families, our Valley economy and our nation’s fiscal health,” Costa said.