Bob Marx supports “Responsible Homeowner’s Refinancing Act” to help struggling homeowners refinance their mortgages.
Mr. Marx, neighbor island candidate for Hawai‘i’s Second Congressional District, today endorsed legislation to help homeowners who are “underwater” on their mortgages refinance at a lower rate. Speaking to a group at a coffee talk in Kea‘au, Marx stressed that the federal government must make it a priority to help struggling homeowners who owe more on their mortgages than what their homes are now worth.
A new bill authored by Senators Barbara Boxer (D-C.A.) and Sen. Menendez (D-N.J.) is aimed at helping these homeowners refinance their mortgages. It was introduced on the Senate floor earlier this week, and named the ‘Responsible Homeowner’s Refinancing Act.” The bill, S. 170, would provide for the affordable refinancing of mortgages currently held by Fannie Mae and Freddy Mac.
“This legislation could save each homeowner several thousand dollars each year, and, more importantly, keep them in their own homes,” Marx told the crowd. “There is no need to put more hardworking people and their families out on the streets, or ask their extended families to take on a larger burden by taking them in.”
Moody’s (MCO), a credit agency cited by Sen. Boxer, estimates that this legislation would allow up to three million homeowners to refinance their mortgages at a much lower interest rate. This bill would put more money back in the pockets of homeowners whose budgets are already stretched thin. The legislation would also provide some much needed stability to America’s housing market.
Some major provisions of the bill include:
- Eliminating up-front refinance costs
- Eliminating appraisal costs
- Requiring second mortgage holders to cooperate
- Removing barriers to competition
- Extending streamlined refinancing plans to more people
- Providing certainty to mortgage bond holders
Marx said, “Many of my constituents and friends are in real estate and construction. They have not had consistent work since 2006. We must do what we can to ensure homeownership is a reachable goal of the American dream. Lower interest rates for homeowners who are now underwater will assist in a small but significant manner in getting the overdue housing recovery on track,” Marx emphasized.