WASHINGTON - U.S. Senators Robert Menendez (D-NJ) and Barbara Boxer (D-CA) applauded today's action by the Federal Housing Finance Agency (FHFA) to extend the Home Affordable Refinance Program (HARP) by two years to December 31, 2015 and underscored the need for Congress to pass their legislation, which would further reduce barriers to refinancing for responsible homeowners who are underwater.

"With today's action to extend the HARP program, the FHFA is rightly giving millions of underwater borrowers with Fannie and Freddie loans a chance to take advantage of historically low interest rates," said Senator Menendez. "That's an important piece of our plan to help responsible homeowners refinance, but there is more we must do. That's why I will continue to push to pass our bill to further reduce barriers like high appraisal costs and up-front fees."

"I am pleased that FHFA has taken a key provision of the Menendez-Boxer bill to extend the HARP program that is helping responsible underwater borrowers to refinance," said Senator Boxer. "There's more we must do, including passing our legislation. The housing recovery has begun, but there are still far too many struggling homeowners who deserve the chance to refinance at today's low rates."

Extending the program will continue to provide borrowers opportunities to refinance, give clear guidance to lenders and reduce risk for Fannie Mae, Freddie Mac and taxpayers.
Earlier this year, Menendez and Boxer reintroduced their Responsible Homeowner Refinancing Act which removes the barriers preventing Fannie Mae and Freddie Mac borrowers from refinancing their loans at the lowest rate possible.

Today's announcement also addressed FHFA's intent to launch a nationwide campaign to inform homeowners about HARP, another key goal of the Menendez-Boxer legislation.

There are nearly 12 million responsible borrowers in loans guaranteed by Fannie Mae and Freddie Mac who could benefit from refinancing at today's low interest rates. While changes to the Home Affordable Refinance Program (HARP) were a step in the right direction, there remain barriers that keep millions of borrowers trapped in higher interest loans. The Responsible Homeowner Refinancing Act further expands opportunities to access historically low interest rates for borrowers who make their mortgage payments on time.

The bill would:

• Ensure that streamlined refinancing is available and consistent for all Fannie and Freddie borrowers, regardless of whether they are underwater or not

• Reduce up-front fees on refinances

• Eliminate appraisal costs for all borrowers

• Remove additional barriers to competition

• Further streamline refinancing application process

###