NAFCU participated in a call Monday with White House officialsregarding proposals to modify the Home Affordable Refinancing Program, run through Fannie Mae andFreddie Mac, and implement a streamlined refinancing program at theFederal Housing Administration.

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The Obama administration is supporting three bills introducedlast week that address mortgage modifications and refinancing, which include a bill that would allow non-GSE andnon-FHA guaranteed loans to be refinanced. They include:

  • S. 3047, to implement the FHA streamlined mortgageproposal;
  • S. 2909, to require Fannie and Freddie to cover the closingcosts of loans refinanced under HARP; and
  • S. 3085, to expand the availability of affordable refinancingsof loans held by Fannie and Freddie.

All three bills await action of the Senate BankingCommittee.

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Tessema Tefferi, NAFCU's regulatory affairs counsel, and JillianPevo,the association's senior associate director of legislative affairs,represented NAFCU in the call.

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The administration earlier this year asked Congress forlegislation that would permit eligible homeowners to refinancethrough Fannie, Freddie and the FHA if the loans to be refinancedhad characteristics similar to the conforming loan standards inplace at FHA and the government-sponsored enterprises; and theamount of the refinanced loan did not exceed 140% of the propertyvalue.

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Between 3 million and 4 million households would be eligible forthe programs. More than 1 million people had already refinancedthrough HARP before this January, the White House reported.

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