WASHINGTON A sharply divided Congress isnt likely to jump at President Barack Obamas challenge for quick passage of a mortgage-refinancing bill that supporters say could help millions of homeowners save big each year and boost the economy.
Obama praised the legislation in his State of the Union speech last week, saying the proposal would help more homeowners with mortgages backed by Fannie Mae and Freddie Mac take advantage of low interest rates and refinance their loans.
Even with mortgage rates near a 50-year low, Obama said, too many families that have never missed a payment and want to refinance are being turned down.
Thats holding our entire economy back, and we need to fix it, the president said. Right now, theres a bill in this Congress that would give every responsible homeowner in America the chance to save $3,000 a year by refinancing at todays rates. Democrats and Republicans have supported it before.
The economys slow recovery from the recession gives the idea urgency, Obama said. Send me that bill, he told members of Congress listening to his speech in the House chamber.
The proposal is part of a push by Democrats and the White House to help homeowners take advantage of low interest rates as a way to help the housing market recover and to give the economy a shot in the arm.
While the bill could gain traction in the Democratic-controlled Senate, it faces a rough road in the GOP-run House, where many Republicans favor scaling back the governments role in the housing market as a way of aiding the economy. Similar versions of the measure died in the House and Senates lame duck sessions last year.
At the moment, its an uphill battle, said Rep. Peter Welch, D-Vt., who plans to file the House version of the bill.
Welch said he will reach out to Republicans this year in hopes of building more support, but the bills association with the government-controlled Fannie Mae and Freddie Mac, the federal housing agencies partly blamed for the collapse of the housing market, hurts its support base among GOP lawmakers.
The American taxpayers have already sunk $190 billion dollars into the operations of Fannie and Freddie, said Rep. Randy Neugebauer, R-Texas, a member of the House Financial Services Committee. Its time that we wind their operations down instead of using them as a piggy bank for failed programs that further delay the housing recovery.