Termination of FHA Short Refinance Program Clears House, with Oregon's Schrader Joining Republicans.

The House passed a bill (HR 830) that would terminate the FHA short refinance program.  The vote was largely along party lines with some Democrats joining the Republican majority, including Oregon Rep Curt Schrader.  

The Administration says that they will veto the bill if it is passed by the Senate.

The CBO cost estimate for this bill HERE says that the program costs $13,000 per mortgage, that it would eliminate 13,000 possible refinances, and save $175 million from 2011-2021:

As of January 31, 2011, about 40 loans have been refinanced under the program. Based on data from the Department of Housing and Urban Development, CBO estimates that the refinanced loans cost the government an average of $13,000 on a present- value basis. CBO estimates that enacting H.R. 830 would prevent the refinancing of about 13,000 mortgages under the program. In total, CBO estimates that enacting the bill would reduce direct spending by $175 million over the 2011-2021 period.

Originally created and posted on the Oregon Housing Blog.