Senators Revive Refinance Bill

Two U.S. senators reintroduced legislation designed to open up competition and limit barriers to refinance for qualified homeowners who are otherwise left without options.

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Senators ""Robert Menendez"":http://www.menendez.senate.gov/ (D-New Jersey) and ""Barbara Boxer"":http://boxer.senate.gov/ (D-California) reintroduced ""The Responsible Homeowner Refinancing Act of 2013 (S. 249)"":http://www.govtrack.us/congress/bills/113/s249, a bill that would allow homeowners to take advantage of low interest rates by reducing or removing certain refinance requirements.

""We need to bring much-needed relief now to hard working, responsible homeowners who are struggling to keep up with their high interest rate loans -- including thousands in New Jersey whom I have heard from,"" Menendez said. ""We need to do this before interest rates go up again. It's time that Congress finally put families first and give homeowners who have played by the rules a fair chance to refinance at today's low rates.""

Firstly, the bill would direct the GSEs to require the same streamlined underwriting and associated representations [COLUMN_BREAK]

and warranties for new servicers as they do for current servicers, leveling the playing field for lenders and servicers.

The bill would also expand access to low-cost refinances to borrowers with higher equity and would eliminate employment and income verification requirements for eligibility under the Home Affordable Refinance Program (HARP) based on the justification that HARP-eligible borrowers must already be current on their loans and must have demonstrated a commitment to paying on time.

In addition, the act would require the GSEs to develop additional streamlined alternatives to manual appraisals, reducing cost and time for borrowers and lenders alike.

Finally, S. 249 would also extend HARP by one year, pushing it through to the end of 2014.

According to a release from Menendez's office, the bill (which was originally introduced in the 112th Congress) enjoys support from a number of congressional consponsors and industry groups, including the ""Mortgage Bankers Association"":http://www.mbaa.org/, the ""National Association of Realtors"":http://www.realtor.org/, the ""National Association of Home Builders"":http://www.nahb.org/Default.aspx, and the ""Center for Responsible Lending"":http://responsiblelending.org/, among others.

""This bill is a win-win-win,"" Boxer said. ""Homeowners will have more money in their pockets, Fannie and Freddie will see fewer foreclosures, and the housing market and economy will continue building momentum. That's why the Menendez-Boxer bill has such broad support from industry and consumer groups. We should take action on this common-sense plan immediately while interest rates remain low so American families can realize major savings.""