HUD secretary backs refinance reform bill

New York /
May.May 09, 2012 05:30 PM

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, is pushing for mortgage refinancing reform and supporting a proposed bill to eliminate certain refinancing barriers, according to DS News. The Federal Housing Administration convened with the Senate Banking Committee yesterday where Donovan made his case that lower fees, simpler underwriting guidelines and manual appraisals for borrowers would increase refinance opportunities for homeowners.

“Frankly, we think it doesn’t make a lot of common sense that a homeowner who actually has more equity in their home is a lower-risk borrower… [than] homeowners who may be underwater on their homes,” Donovan said. “It’s a question of fairness to make sure refinancing is available across the board.”

The refinancing reform bill, introduced by Senators Barbara Boxer and Robert Menendez, has met political opposition. Senator Richard Shelby voiced skepticism over the position, asking Donovan, “Do you share my overall concern about the solvency of FHA?” Donovan responded that the FHA is taking “a number of broad steps to protect the fund.” [DS News]


Related Articles

arrow_forward_ios
A photo illustration of Douglaston Development CEO Jed Resnick (Getty, NYC Department of Finance, LinkedIn/Jed Resnick)
Douglaston CEO sees 421a dead until 2026
Douglaston CEO sees 421a dead until 2026
HUD's Marcia Fudge and President Joe Biden (Getty, iStock)
Biden unveils 5 steps to reduce racial bias in appraisals
Biden unveils 5 steps to reduce racial bias in appraisals
Chicago City Hall and the old Cabrini-Green housing (Getty, WikiMedia / Victorgrigas)
Feds probe Chicago aldermen’s veto power over affordable housing
Feds probe Chicago aldermen’s veto power over affordable housing
Phoenix Realty acquires Spencer Equity’s Bronx Section 8 complex for $91M
Phoenix Realty acquires Spencer Equity’s Bronx Section 8 complex for $91M
Phoenix Realty acquires Spencer Equity’s Bronx Section 8 complex for $91M
Bronx Section 8 housing, West Village dorm top mid-market sales
Bronx Section 8 housing, West Village dorm top mid-market sales
Bronx Section 8 housing, West Village dorm top mid-market sales
HUD secretary Marcia Fudge (Getty)
HUD sells flood-prone homes without informing buyers
HUD sells flood-prone homes without informing buyers
From left: Camber Property Group principals Rick Gropper, Andrew Moelis, Harlem Congregation for Community Improvement president Malcolm Punter and 104-110 West 144th Street in Harlem (Photos via Camber, Harlem Congregation, Ariel Property Advisors)
Affordable housing developer Camber Property buys 60-unit Harlem complex
Affordable housing developer Camber Property buys 60-unit Harlem complex
NYCHA Chairman Gregory Russ and NYCHA federal monitor Bart Schwartz. (NYCHA Monitor)
NYCHA overhauling management system
NYCHA overhauling management system
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...