H.R. 830, The FHA Refinance Program Termination Act:
H.R. 830, introduced by Rep. Robert Dold (R-IL) on February 28th, terminates the FHA Refinance Program and protects taxpayers from having $8 billion of their money from being spent on this ineffective program.
In March 2010, the Administration announced the creation of the FHA Refinance Program to refinance underwater loans into the FHA. The program is funded with $8 billion in TARP funds. According to Treasury’s TARP Progress Report, only $50 million of this $8 billion had been disbursed as of February 3. The Administration originally estimated this program would help between 500,000 and 1.5 million homeowners. However, only 44 loans have been refinanced as of mid-February and only 245 applications have been submitted, according to FHA Commissioner David Stevens. Without action by Congress, the FHA Refinance Program will continue until December 31, 2012.
Click here to view a copy of the legislation.