WASHINGTON DC (KDAL) - On Monday, Sen. Al Franken (D-Minn.) plans to introduce legislation – the Helping Homeowners Refinance Act – that would help more homeowners refinance their home mortgages, saving them money and, in many cases, helping them keep their homes.
"The federal government should be making it easier for homeowners to refinance their mortgages, not creating additional hurdles for banks and homeowners. It's time for Fannie Mae and Freddie Mac to stand up and honor their obligation to American homeowners," said Sen. Franken. "This legislation would make it easier for homeowners to refinance, saving them money and helping them keep their homes."
According to a recent report, Freddie Mac has made investments that create a disincentive for the mortgage finance agency to help homeowners refinance their mortgages – which is in direct violation of its mission to create affordability in the housing market. Sen. Franken's legislation would address this practice by requiring the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, to prohibit investments by the mortgage finance agencies that create disincentives to help homeowners and stabilize the housing market.
Additionally, the Helping Homeowners Refinance Act would reduce barriers that prevent banks from helping homeowners refinance their mortgages, streamlining the process and making it easier for millions of American homeowners to refinance.