This bill gives the Michigan State Housing Authority (MSHDA) the ability to assist those having trouble paying their mortgages.

Below is the blog I wrote about this bill. It was also posted at http://www.senate.mi.gov/dem/blog.php?id=9.

Senate Must Act on MSHDA Refinancing Bills to Keep Consumers in Their Homes

January 30, 2008 by Senator Buzz Thomas

It was good to see the Senate Banking and Financial Institutions Committee today take testimony on my Senate Bill 951. This bill is a part of a 10 bill package (five House bills, five Senate bills) that would allow the Michigan State Housing Authority (MSHDA) to help homeowners refinance their mortgages. Specifically, MSHDA would focus on two groups of people:

People who have an ARM mortgage; People with a fixed or adjustable rate mortgage ARM if they have problems with their credit.

Both will focus on low to moderate income people and both will offer a job security clause, that would assist those who lost their jobs through no fault of their own (in other words, people who did not screw up at work and get fired.)

Currently MSHDA assists families to purchase their homes, but MSHDA cannot assist those that already have a mortgage or have mortgage problems. Our bills would give MSHDA the ability to help those that have a mortgage and have difficulty paying it. The other interesting policy aspect of these bills is that it will not cost the state any money. MSHDA will use bonds to raise the money to assist families.

We all have seen stories about the mortgage crisis in the U.S. and heard that it is affecting money markets throughout the world. It is interesting to learn how a housing crisis the U.S. can have a detrimental affect in Tokyo and London, and I am not going to pretend that my bill will affect these markets, but I do think that it would help Michigan’s families keep their homes.

We need to offer relief ASAP to homeowners and when it comes to the sub-prime loan crisis Detroit is one of the hardest hit cities in the nation. MSHDA says that these bills, dubbed Save the Dream, could assist thousands of people throughout Michigan.

Since the Committee only took testimony today they said they would vote on them next week, February 6, at 9:00 AM in room 210 Farnum. The five House bills already passed the House and these bills need to pass the Senate soon.

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