The National Association of Realtors announced it supports the proposed Responsible Homeowners Refinance Act of 2012, introduced earlier in May.
The act would offer relief to responsible homeowners in good credit standing, helping a greater number of Americans to avoid foreclosures.
According to NAR, the proposed legislation would extend refinancings; eliminate loan-to-value ratios for well-performing loans and up-front fees and appraisal costs; improve competitive market practices for lenders; and create penalties for second lien holders and mortgage insurers who reject eligible refinancing borrowers. These changes would lift some of the current Fannie Mae and Freddie Mac eligibility requirements.
NAR reports that the legislation will help promote additional growth in the housing market, helping consumers to gain better control over their financial situations and giving them greater purchasing power and consumer confidence.
"As the leading advocate for homeownership, Realtors knows that helping consumers remain in their homes must be a priority if we are going to move the housing market and our nation from a fragile recovery to long-term prosperity," said NAR president Moe Veissi.
