Congresswoman Chellie Pingree said today she will support President Obama's proposal to help homeowners refinance mortgages at a lower rate.
"I've heard from far too many people who are current on their mortgages, have good credit and equity in their houses but banks won't talk to them about refinancing at a lower rate. It's frankly outrageous, especially since a lot of these banks were bailed out at taxpayer expense," Pingree said. "If this program is approved I don't think banks will have any excuse not to refinance responsible borrowers."
Obama's proposal, which has to be approved by Congress, would provide streamlined refinancing for borrowers who are current on their mortgages, even if they are "underwater." The program would be run by the FHA and financed by a small fee on the biggest banks. According to the President's proposal, borrowers would be eligible if:
* They are current on their mortgage payments.
* They meet a minimum credit score of 580.
* They have a loan that is no larger than the current FHA conforming loan limits in their area.
* The loan they are refinancing is for a single family, owner-occupied principal residence.
The application process would also be streamlined, and not require a new appraisal or tax return.
Pingreealso said she hopes the plan gets bipartisan support in Congress.
"This should be a no-brainer because not only will it save homeowners an average of $3,000 a year, but that money islikely to go directly back into the local economy," Pingree said.