Obama's proposal to refinance mortgages met with resistance - KWWL - Eastern Iowa Breaking News, Weather, Closings

Obama's proposal to refinance mortgages met with resistance

Obama's proposal to refinance mortgages met with resistance


The president is calling on Congress to quickly approve an expansion of the home affordable refinance program.

It's specifically aimed at homeowners who are "underwater," meaning they owe more than the home is worth.

The President said he wants Congress to pass an expanded refinancing program that will let "responsible" homeowners take advantage of low interest rates, despite owing more on their homes than the current value.

U.S. Secretary of Housing and Urban Development Shaun Donovan said 30,000 Iowa families would benefit from this refinancing proposal.

The refinancing program is already available to those with a Fanny May, Freddy Mac, or FHA mortgage, but the Obama administration said this proposal would expand eligibility to millions of U.S families.

"We need Congress to act to make sure that those families who don't have a government guaranteed mortgage can refinance and save $3,000 a year," Donovan said.

But the proposal is already meeting resistance.

House Speaker John Boehner said it's been done before.

"None of these programs have worked, and I don't know why anyone would think that this next idea's going to work, and all they've done is delay the clearing of the market," Boehner said. "The sooner the market clears and we understand where the prices really are will be the most important thing we can do in order to improve home values around the country."  

Boehner said he is open to working with President Obama on any plan if "it makes economic sense, and if it's fiscally responsible."

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