Calling his first meeting with GSE regulator Edward DeMarco "disappointing," the chairman of a House task force on housing stabilization wants more answers from the regulator – plus he wants to see the agency's national refinancing plan before it's announced publicly.
The Obama White House – working with both the Federal Housing Finance Agency and HUD – has yet to unveil its proposal to refinance underwater GSE borrowers, though it's expected by month's end.
Rep. Elijah E. Cummings, D-Md., who chairs the Housing Stabilization Task Force, on Friday asked DeMarco to return to Congress "with a more aggressive approach to the housing crisis." He wants a meeting no later than October 26, next Wednesday.
DeMarco met with Cummings and 17 other Congressman in early October to discuss the Obama refi plan which hinges, in large part, on FHFA's approval because of its role as conservator of Fannie Mae and Freddie Mac.
As NMN went to press a spokeswoman for DeMarco had not returned a telephone call and email about the matter.
Fannie and Freddie will allow underwater borrowers to refinance loans with LTVs as high as 125% and recently DeMarco hinted he may increase that threshold plus waive certain origination fees.
In a letter to the regulator, Cummings writes, “You indicated that FHFA was considering increasing the program's loan-to-value ratio limit beyond 125%, as well as addressing problems with refinancing fees, home appraisals, and representations and warranties, but you provided no details.”
The Congressman adds: "Given the urgency of ensuring that the President's proposal is implemented effectively and efficiently, we request that you meet with us on Wednesday, October 26, 2011, at 2:00 p.m. or sooner to ensure that Members are consulted about your proposals before you announce them publicly."
