Senate approves Richardville legislation to help homeowners avoid foreclosure and obtain affordable housing
LANSING - The Senate today unanimously approved bipartisan legislation that will allow Michigan homeowners to refinance their home loans at lower interest rates to avoid foreclosure and help more state residents qualify for affordable housing loans, said Sen. Randy Richardville.
"Homeowners are facing difficult times with the state's poor economy, and they are struggling to make mortgage payments," said Richardville, R-Monroe. "This legislation will serve as an economic stimulus by helping them secure home loans with lower interest rates. We are trying to help more residents take advantage of the housing programs offered by the state and boost the state's economy."
Senate Bill 1133, sponsored by Richardville, will expand the total family income cap threshold for those seeking a loan offered by the Michigan State Housing Development Authority to $108,000. It will also allow state residents to have increased access to MSHDA programs.
Other legislation, House Bills 5443 and 5446 and Senate Bills 948, 950 and 951, will allow MSHDA to create the ARM Assistance Refinance Program and the MSHDA Rescue Refinance Program. These refinancing programs will help homeowners who are in good standing refinance their loans at a lower interest rate.
The legislative package includes a three-year limit on the refinancing programs and requires MSHDA to provide an annual report to the Legislature. These amendments were developed when the measures were before the Senate Banking and Financial Institutions Committee, chaired by Richardville.
"The committee added these requirements to the legislation to ensure that MSHDA will regularly inform lawmakers about the program's progress," Richardville said. "This will allow the Legislature to reevaluate the program to determine if it is really helping state homeowners. We can then decide if the program should continue."
The bills will now advance to the House for consideration.
Posted: Thursday, March 06, 2008
Print friendly version Email this page