LANSING - State Representatives Kate Ebli (D-Monroe) and Kathy Angerer (D-Dundee) today voted in support of an aggressive, bipartisan initiative to help more working families keep up with mortgages and avoid losing their homes. The plan - which is another example of their commitment to take a broad approach to boost the state's economy and create jobs today for our residents - passed the House on Wednesday and now heads to the Governor's desk to be signed into law.
"The foreclosure crisis that has swept our nation has hit Michigan hard, and our working families are paying the price," Ebli said. "By fighting the epidemic of foreclosures, we will strengthen our communities, provide a boost to our state's economy, and create jobs now."
The plan will fight the epidemic of foreclosures by establishing programs to allow homeowners saddled with risky adjustable-rate mortgages (ARMs), and those who have missed mortgage payments, to refinance and secure a fixed-rate loan. The initiative empowers the Michigan State Housing Development Authority (MSHDA) to refinance mortgages; currently, MSHDA can only make mortgages, not refinance them.
MSHDA provides loans financed through the sale of tax-exempt and taxable bonds and notes to private investors - not from state tax revenues.
Under the plan, borrowers who meet income and credit score requirements could avoid dramatic increases in their housing expenses by securing a fixed-rated loan. It would allow homeowners who have missed payments on their adjustable-rate mortgages, and who are unable to work out an agreement with their lender to avoid a foreclosure, to apply for a fixed-rated loan.
"Each time we help prevent a foreclosure notice from being issued, we are helping to build stronger communities," Angerer said. "An entire neighborhood suffers whenever a family is forced out of their home. Our residents work hard every day for their piece of the American Dream, and we must do everything we can to support our working families and keep them in their homes. This plan does that."