Boxer calls for support of homeowners legislation

U.S. Senator Barbara Boxer, Democrat in California, recently called for support of her Helping Responsible Homeowners Act of 2011, which would help homeowners refinance their mortgages on homes whose value have dropped below the mortgage rate.

Boxer hopes to eliminate the obstacles homeowners with non-delinquent, Fannie Mae or Freddie Mac-backed mortgages are facing when trying to refinance, and offer them lower rates to save families money.

Fannie Mae and Freddie Mac do offer refinancing options for homeowners whose homes have lost value in the market, but participants must pay fees as high as 2 percent of the loan. Boxer's legislation would eliminate the risk-based fees on refinancing, remove refinancing limits on underwater properties, assist borrowers with two mortgages in refinancing and ensure borrowers receive a fair interest rate if they continue to pay their mortgage payments on time.

"By helping these homeowners refinance at lower rates, we will put thousands of dollars back in the pockets of families and strengthen our economy," Senator Boxer said.

This legislation is in line with the public's lack of confidence in the flailing housing market. A recent Rasmussen Report found 35 percent of homeowners say their home is worth less than their mortgage, and 89 percent say it is not likely they will miss or be late on a mortgage payment in the next six months.  

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