{
  "id": "R42577",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "R42577",
  "active": false,
  "source": "EveryCRSReport.com",
  "versions": [
    {
      "source": "EveryCRSReport.com",
      "id": 412031,
      "date": "2012-09-11",
      "retrieved": "2016-04-06T23:56:58.527464",
      "title": "An Economic Analysis of Large-Scale Mortgage Refinancing Proposals: A Brief Overview of S. 3522 and S. 3085",
      "summary": "The bursting of the housing bubble in 2006 precipitated the December 2007-June 2009 recession and a financial panic in September 2008. With the housing market seen as a locus for many of the economic problems that emerged, some Members of Congress propose intervening in the housing market as a means of improving not only the housing market itself but also the financial sector and the broader economy. Critics are concerned that further intervention could prolong the housing slump, delay recovery, and affect outcomes based on the government\u2019s preferences. One frequently discussed proposal for the housing market is expanding the Home Affordable Refinance Program (HARP) to refinance mortgages for borrowers shut out of traditional financing methods.\nLarge-scale refinancing helps borrowers who are current on mortgage payments to refinance into a new mortgage with a lower interest rate. Because refinancing generally helps borrowers who are current, it is unlikely to have a major effect on the housing market, but it may prevent some foreclosures that could occur in the absence of a refinance. In addition, refinancing has the potential to have a larger effect on the economy by stimulating consumer spending. A mortgage refinance could lower a borrower\u2019s monthly payment, freeing up more income for non-housing-related spending. Some of the additional spending of borrowers may come at the cost of the financial sector. Although some financial institutions may lose investment income from refinancing, others could benefit from the increased business associated with refinancing.\nPresident Obama, in his 2012 State of the Union address, proposed streamlining the existing program to refinance Fannie Mae and Freddie Mac loans and establishing a new mass refinancing plan for non-Fannie Mae and non-Freddie Mac loans. Congressional proposals for large-scale refinancing of Fannie Mae and Freddie Mac loans include H.R. 363, S. 170, and S. 3085.\nS. 3085 and S. 3522 are commonly referred to as the \u201cMenendez-Boxer\u201d bills.",
      "type": "CRS Report",
      "typeId": "REPORTS",
      "active": false,
      "formats": [
        {
          "format": "HTML",
          "encoding": "utf-8",
          "url": "http://www.crs.gov/Reports/R42577",
          "sha1": "837a9ce8e7ae28251c23bbc1a4f8680054c3682f",
          "filename": "files/20120911_R42577_837a9ce8e7ae28251c23bbc1a4f8680054c3682f.html",
          "images": null
        },
        {
          "format": "PDF",
          "encoding": null,
          "url": "http://www.crs.gov/Reports/pdf/R42577",
          "sha1": "f2e63cf7c8edaa445b5ecfac79e61b7c7311f7f0",
          "filename": "files/20120911_R42577_f2e63cf7c8edaa445b5ecfac79e61b7c7311f7f0.pdf",
          "images": null
        }
      ],
      "topics": []
    }
  ],
  "topics": []
}