NAMB Supports Home Loan Guarantee Reforms
Feb 27, 2008
McLean, Va. – February 21, 2008 – The National Association of Mortgage Brokers (NAMB) today announced its support for a plan to reform the U.S. Department of Agriculture’s single family housing loan guarantee program. S. 2008, the “Home Ownership Made Easier Act” (HOME Act) introduced by Senator Mary Landrieu (D-LA), would expand eligibility for mortgage refinancing.
Currently, the USDA program does not allow the borrowers to refinance an existing non-USDA mortgage into the USDA program. This bill will allow borrowers to refinance into USDA-backed loans regardless of the type of residential mortgage loan they currently have.
“There are a lot of consumers who need immediate assistance,” said NAMB President George Hanzimanolis, “but we have a scarcity of good programs out there that can help.”
The bill would allow refinancing to eligible borrowers in order to pay off first or second mortgages, finance rehabilitation projects on their homes, cover closing costs or consolidate other debt.
Mortgage brokers stand in a unique position to bring these reforms into reality for consumers. By working through an approved lender, brokers give consumers access to an expanded selection of loan products including the refinancing opportunities made possible under S. 2008.
“I think we’ll see the biggest impact from this bill in rural areas and in other neighborhoods that have struggled with recent declines in market values,” said Hanzimanolis.
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