The Senate Banking and Financial Institutions Committee last week approved legislation which will allow Michigan homeowners to refinance their home loans at lower interest rates to help save their homes from foreclosure, said Sen. Randy Richardville, committee chair.
"As the governor reiterated in the State of the State address, the Senate is working in a bipartisan manner to help alleviate the state's foreclosure crisis," said Richardville, R-Monroe.
"Too many homeowners in Michigan are hurting from mortgages they can no longer afford. We need to move these bills through the Legislature to providemore assistance for residents who are facing foreclosure."The legislative package, House Bills 5443 and 5446 and Senate Bills 948, 950 and 951, will allow the Michigan State Housing Development Authority (MSHDA) to implement the "Save the Dream" program, which will helphomeowners, who are in good standing, refinance their loans at a lower interest rate.
State Rep. Pam Byrnes, D-District 52, believes the plan will help homeowners at risk of foreclosure to secure more affordable, fixed-rated loans through MSHDA.
"It provides loans that are financed through the sale of tax-exempt and taxable bonds and notes to private investors - not from state tax revenues," Byrnes said. "This package of bills will expand MSHDA's ability to provide financing for not only first time home-buyers, but also home-owners who are finding themselves in over their heads with the skyrocketing costs of adjustable rate mortgages.
"My hope is that our efforts will help more Michigan families avoid losing their homes."
According to MSHDA, the refinancing program will help approximately 2,400 people in the first year."This is a great program that will really benefit some state residents, but it would be better if the program could help even more," Richardville said. "I am looking at ways to expand the legislation so that more people can receive help during these troubling economic times."
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