Two Senate Democrats renew push for refinancing bill

Two Senate Democrats touted broad support for a bill that would allow millions of homeowners to refinance, calling on Republicans to join them in passing the measure before the November elections. 

Sens. Robert Menendez (N.J.) and Barbara Boxer (Calif.) urged on Monday for quick passage this month of the revised legislation they crafted to address all of the issues raised by the housing industry, the Obama administration and their congressional colleagues.

The lawmakers argue the measure is needed quickly, before mortgage rates start to tick up from historic lows, to allow homeowners with government-backed mortgages to refinance, thus freeing up more of their income for other expenses, lowering the risk to the federal government and providing a boost to the economy. 

Although Menendez and Boxer support a Senate Banking Committee markup, they cautioned, once again, that any amendments need to remain focused on refinancing and not on other hot-button issues such as winding down government-controlled mortgage giants Fannie Mae and Freddie Mac. 

"Some want to have a whole debate over whether Fannie and Freddie should exist but that's an argument for another day," Menendez said. 

Those types of amendment would be "poison pills" on a bill with broad support, he said. 

"I hope we can overcome the challenge of extraneous amendments and that reasonable minds prevail."

Negotiations are under way between Banking Chairman Tim Johnson (S.D.) and ranking member Richard Shelby (R-Ala.) over the committee process, the lawmakers said. 

“I recognize that with an election approaching we are at the peak of the political season, but I implore my congressional colleagues to recognize that politics have no place in this debate. American families deserve this relief now, and the Senate and House should move forward quickly to pass this bill," Johnson said in a statement. 

With an agreement on amendments, Menendez said the banking panel could dispense with the legislation in a day, leaving it for Senate Majority Leader Harry Reid (D-Nev.) to bring to the floor. 

Menendez called the bill a "priority" for Reid. 

With Congress back in session for a scheduled eight days, Menendez and Boxer said they will lobby their GOP colleagues for support.

They expressed a willingness to stay in Washington to "get the bill done" before leaving town for the election season. 

The Boxer-Menendez bill makes changes to the Home Affordable Refinance Program (HARP) that eliminates appraisal costs, removes barriers to competition and opens eligibility to those current on their payments regardless of equity level.

Recently, President Obama called again on Congress to pass the bill, which is on his to-do list. 

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