Barbara Boxer’s bill, very similar to my refinance idea.

I would advise Mrs. Boxer to ask for my help!

Press Release of U.S. Senator Barbara Boxer

For Immediate Release:
January 26, 2011
Washington D.C. Office (202) 224-3553

Boxer Introduces the Helping Responsible Homeowners Act of 2011

Legislation Would Allow Homeowners to Refinance Their Mortgages at Historically Low Market Rates

Washington, D.C. – U.S. Senator Barbara Boxer (D-CA) this week introduced the Helping Responsible Homeowners Act of 2011, which would remove barriers that are preventing non-delinquent borrowers from refinancing their mortgages and taking advantage of historically low interest rates.

Senator Boxer said, “At a time when millions of Americans have been forced out of their homes, this legislation will ensure that homeowners who make their payments on time will be able to refinance their mortgages at current low rates so they can stay in their homes. Another benefit will be more disposable income at a time when our economic recovery needs a boost in consumer spending.”

The legislation aims to help borrowers who continue to make their mortgage payments on time, but whose homes have lost value during the real estate crisis.

Currently, Fannie Mae and Freddie Mac offer refinancing programs to these homeowners. However, participation has been low, in part because homeowners must pay high, risk-based fees up front to refinance their loans – even though Fannie and Freddie already bear the risk if these homeowners were to default on their loans. These additional fees can be as high as two percent of the loan amount, or an extra $4,000 on a $200,000 loan.

These fees can discourage borrowers from refinancing in a time of historically low interest rates, making it more likely that they will eventually default rather than pay high rates.

This legislation would:

• Eliminate risk-based fees on loans for which Fannie and Freddie already bear the risk;

• Remove refinancing limits on underwater properties;

• Make it easier for borrowers with second mortgages to participate in refinancing programs;

• Require that borrowers are able to receive a fair interest rate, comparable to that received by any other borrower in good standing who has not suffered a drop in home value and has stayed current with their mortgage payments.

Despite a recent uptick, interest rates for 30-year home mortgages remain near historically low levels – under five percent. Yet nearly 13 million of the 31.5 million mortgages guaranteed by Fannie Mae and Freddie Mac still carry an interest rate above 6 percent. This bill would allow non-delinquent mortgages to be refinanced at current rates, putting thousands of dollars a year back in the pockets of struggling families.

Sound Familiar!!!

The Time is Now for Freddie and Fannie to Help Our Non-Delinquent Homeowners

By Logan Mohtashami
Benzinga Columnist
November 25, 2010 1:01 AM

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