Frank Looking to Speed Up Hope Amendments

House Financial Services Committee chairman Barney Frank, D-Mass., is looking to attach major amendments to the Hope for Homeowners program, the economic stimulus bill or any bill that is moving quickly. "It is a major priority for us," committee spokesman Steve Adamske told MortgageWire. The amendments to the Hope program would revamp the Federal Housing Administration refinancing program to make it more attractive to borrowers and servicers. The changes would eliminate the 3% upfront insurance premium, cut the 1.5% annual premium in half and drop shared appreciation where the government could take 50% of the price increase when the house is eventually sold. For servicers, the bill ensures they will receive a fee for refinancing underwater mortgages and eliminates liability for a first payment default. Rep. Frank incorporated the Hope changes in a bill that spells out how the new Obama administration should spend the remaining $350 billion of the Troubled Asset Relief Program funds. The House passed the TARP bill (H.R. 384) by a 260-166 vote on Wednesday. But the Senate is not expected to consider H.R. 384. So Rep. Frank is looking for alternative legislative vehicle for the Hope amendments. The Senate already passed a resolution that allows the new administration to use the remaining $350 billion TARP funds and House action is unnecessary.