Los Angeles News
Struggling Southern California homeowners may get refinancing help
DOWNTOWN LOS ANGELES (KABC) -- California Sen. Dianne Feinstein, U.S. Housing and Urban Development Secretary Shaun Donovan and Los Angeles Mayor Antonio Villaraigosa met Wednesday to discuss how refinancing at today's historically low interest rates would help responsible California homeowners who are underwater on their mortgage.
So-called underwater mortgages are when borrowers owe more than their homes are worth. Feinstein has authored one of three bills to help homeowners refinance at the current lower home mortgage rates.
"There are 1.1 million homeowners who are eligible for this program in California and we believe 800,000 of them are in Southern California," Feinstein said.
The Feinstein bill would let homeowners refinance who are current on their mortgages, their loan doesn't exceed 140 percent of the value and they meet a minimum credit score on their principal residence.
"Ninety percent of underwater homeowners are current on their loan and are locked out through no fault in their own from benefiting from the lowest interest rates on a 30-year loan in the history of the country," Donovan said.
The legislation would be financed through a 0.1 percent increase on fees paid by mortgage lenders.
"This does not impact the deficit and the debt, and so all the folks who talk about cutting and just want to focus on eviscerating the safety net, there is really no reason not to be for this," Villaraigosa said.
Feinstein's bill was only recently introduced in the Senate. It's too early to assess how much support the bill will or will not get.
real estate, housing market, finance, los angeles news, john north
- Tornadoes strike Midwest; storms to persist 16 min ago
- UC hospital workers to strike over higher pay
- Greuel, Garcetti meet with LA churchgoers
- Deputies gun down armed man during fight
- Man's body found in vacant apartment in IE
- Man shot, killed in Victorville; 1 arrested
- Hollywood High honored for musical theatre 24 min ago
- Suspect killed in Alhambra PD station ID'ed
- 2 FBI agents killed in Va. training accident
- 6.5-mag quake hits coast of Chile; No tsunami
- abcnews: Hofstra student killed in police standoff
- Yahoo buys Tumblr in $1.1 billion deal
- Taylor Swift wins big at Billboard Awards
- Photos: Selena Gomez stuns at Billboard Awards
- Latest weather with Garth Kemp
54 min ago