WASHINGTON - A House of Representatives panel approved legislation yesterday that eases some requirements for the $300 billion HOPE for Homeowners lending program that has refinanced just 25 loans since it began in October.
The legislation, which goes to the full House as early as next week, lowers the costs for banks and borrowers participating in the program, which was originally designed to assist 400,000 struggling borrowers within three years.
The legislation yesterday, sponsored by House Financial Services Committee chairman Barney Frank, a Massachusetts Democrat, would let the Department of Housing and Urban Development loosen price restrictions and cut the amount of losses banks would have to take in some instances.
HOPE for Homeowners offers federally insured mortgages to borrowers if they agree to share their current equity and future appreciation with the federal government when they sell the property. Lenders are also required to write down as losses the outstanding loan balance to 90 percent of the value of the home.
The legislation passed on a voice vote.
