Rep. Tranel’s WHEDA Refinancing Bill Moves Forward
Madison - Today, Rep. Tranel’s bill (AB 158) allowing existing Wisconsin Housing and Economic Development Authority (WHEDA) loan holders to take advantage of lower interest rates by refinancing, passed the Committee on Housing and Real Estate.
“I would like to thank the committee for moving this important legislation forward,” said Tranel. “Giving WHEDA borrowers the ability to refinance will positively affect the lives of thousands of Wisconsin citizens in need of financial relief during these challenging economic times.”
Currently, WHEDA homeownership mortgage loans may not be made to finance the purchase or replacement of an existing mortgage unless the existing mortgage is a construction loan, temporary financing, or a loan made to finance a rehabilitation project. With these guidelines in place, WHEDA is prevented from allowing its own borrowers to refinance for lower-rate loans. Nearly 80% of all legislative contacts WHEDA receives are due to this restriction imposed on its borrowers.
“I am looking forward to moving this common sense legislation through the full Assembly soon, and greatly appreciate Senator Farrow’s leadership on the companion bill in the State Senate,” said Tranel.