President Obama urged Congress in his State of the Union speech on January 24th to pass a plan to help millions of underwater home owners refinance into loans with historically low interest rates by charging banks a fee to help expedite the transactions.
"I'm sending this Congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage by refinancing at historically low rates," Obama announced. "No more red tape. No more runaround from the banks. A small fee on the largest financial institutions will ensure that it won't add to the deficit and will give those banks that were rescued by taxpayers a chance to repay a deficit of trust."
This isn't the first time Congress considered a proposal to charge banks a fee to help homeowners who remain underwater, but it's not clear from the details Obama provided how similar this plan is to the one Congress has previously looked at.
If you're looking for help refinancing your current loan with your existing lender and have questions, I'd be happy to help!