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Friday, September 9, 2011

Boxer claims White House mortgage refinance

Sen. Barbara Boxer (D-Calif.) said the major mortgage refinance program the Obama administration reportedly began developing mirrors her own.

According to The New York Times, the Obama administration is developing a plan to help more underwater borrowers refinance their mortgage, granting them relief under historically low rates.
Boxer and Sen. Johnny Isakson (R-Ga.) resubmitted S. 170 in June to eliminate refinancing barriers and fees for borrowers with mortgages guaranteed by Fannie Mae and Freddie Mac.
Fannie Mae and Freddie Mac's lack of participation in such major refinancing and principal write-down programs, under the direction of their conservator the Federal Housing Finance Agency, has left many underwater borrowers trapped in their current payments.

Boxer met with the head of FHFA in June in an effort to persuade him to implement the program administratively and without congressional action.

Currently, more than 8 million Fannie or Freddie loans carry an interest rate of more than 6%. The Boxer bill would target roughly 2 million borrowers for a refinance into today's lower interest rate loans, many with loan-to-value ratios above 125%. She claims the program would not cost the FHFA any taxpayer funds and would reduce defaults by keeping these borrowers from walking away.
"We’ve received the letter and will respond to the senator," an FHFA spokesperson said.

The Treasury Department declined to comment on the reported program.
Geez, somebody do something soon.... Been since June...

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