Thursday, Feb. 7, 2008 | 6:18 p.m.
WASHINGTON -- Nevada and other states could take out bonds to help sub-prime borrowers refinance their mortgages under a bill introduced by Republican Rep. Jon Porter.
The bill would allow states to take as much as $15 billion in bonds over three years to refinance homeowners’ loans. Adjustable rate mortgages on nearly 2 million homes are to increase this year, potentially putting monthly payments out of reach. Currently, local governments can issue bonds to finance loans for first-time homebuyers only. Porter’s office says his bill would temporarily change the regulations so states or cities could bond for refinancing loans as well.
Porter's office touts the bill as an alternative to Democratic proposals to freeze adjustable rates temporarily.
Porter’s Southern Nevada district is among those hit hard by the mortgage crisis with rising foreclosures. His office estimates that the bill could help refinance 80,000 loans nationwide, sparing homeowners from the high rates due under their existing mortgages.
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