SBSun published an OpEd by Joan Patsky which asserts that “millions of homeowners” with non-delinquent mortgages may benefit by refinancing at historically low interest rates, if U.S. Senate Bill 170 introduced by Sen. Barbara Boxer, D-Calif., goes into effect. Patsky says “S.B. 170 is designed to assist non-delinquent borrowers in refinancing an existing Fannie Mae or Freddie Mac home mortgage by banning a high, “risk-based lender fee.” The bill requires banks to offer low interest refinance rates to a homeowner whose loan exceeds the value of the home.” Patsky states this would make refinance of existing residential or manufactured home loans easier by banning the high risk-based fee. “One owner of a manufactured home permanently attached to the land said she has been shopping to refinance, and she is also appealing the county tax assessor valuation of her property because of declining neighborhood home values. The manufactured home was purchased a few years ago at $115,000. A search of comparable neighborhood home values showed a similar home that recently sold at only $95,000. If the homeowner can refinance her existing loan at a lower interest rate, her monthly savings could be significant and soften the sting of declining home values.” U.S. SB 170 is known as the “Helping Responsible Homeowners Act.” Co-sponsored by Sen. Johnny Isakson, R-GA makes this a bi-partisan bill, one Patsky believes would benefit homeowners and the economy.
(Barbara Boxer file photo credit: Wikimedia Commons)