Tranel’s WHEDA Refinancing Bill Gets Hearing
MADISON – Today, State Representative Travis Tranel (R-Cuba City) testified before the Assembly Committee on Housing and Real Estate in support of his bill (AB 158) to allow existing Wisconsin Housing and Economic Development Authority (WHEDA) loan holders to take advantage of lower interest rates by refinancing.
“There are 17,000 citizens in Wisconsin that would benefit from allowing a refinancing option,” said Tranel. “By passing this legislation we would be helping many low-to moderate income working families, in my district, reduce their home mortgage payments.”
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.
“The bill has 29 legislative co-sponsors and strong bi-partisan support in both houses,” said Tranel. “This is common sense legislation that helps people and my hope is the committee will bring AB 158 up for a vote in the near future.”