A bill introduced this week by U.S. Rep. Dennis Cardoza, D-Calif., would allow virtually any owner-occupant with a mortgage backed by Fannie Mae or Freddie Mac to refinance at today's low rates -- regardless of whether they are underwater or in default.
HR 6218, The Housing Opportunity and Mortgage Equity (HOME) Act, would affect up to 30 million mortgages held or backed by Fannie and Freddie, Cardoza said in a press release announcing the bill's introduction.
Language in the bill would prohibit Fannie and Freddie from requiring appraisals of properties to be refinanced. Loans servicers would be paid fees of up to $1,000. Fees for refinancing would be rolled into the mortgage and penalties would be waived.