Today, Congressman Joe Baca (D-Rialto) introduced legislation that directs the Government Sponsored Housing Entities, Fannie Mae and Freddie Mac, to offer 50 year mortgage refinance terms to qualified homeowners. The Flexible Refinancing for American Families Act establishes a mortgage plan that would allow homeowners to receive immediate, short-term relief in the form of low monthly mortgage payments.
"With the number of home foreclosures still far too high, families in the Inland Empire and across the nation need help," said Rep. Baca. "I am proud to introduce the Flexible Refinancing for American Families Act, which I believe can be a part of the solution. By directing Fannie and Freddie to offer a 50 year mortgage plan to struggling homeowners, we can ensure more Americans stay in their homes and help to further stabilize the recovery in our housing markets."
In addition to directing Fannie and Freddie to offer 50 year mortgage refinance terms, the Flexible Refinancing for American Families Act also provides that any 50 year agreements would be callable after thirty years. By making the mortgage callable after thirty years, this product would encourage a subsequent refinancing into a more conventional loan once the personal finances of the homeowner have stabilized.
"After discussions with many of my constituents, I decided to pursue this course of action," concluded Rep. Baca. "Over the past year alone, California has seen over 118,000 homes foreclosed on. It is imperative that Congress works to provide as many tools as possible to allow hardworking Americans to recover and build for a better tomorrow. This responsible legislation is a step in the right direction that will hopefully help to get our housing market back on track."