Calif. Democrats Urge Obama to Refinance Mortgages

California Democrats are urging President Barack Obama to help get all mortgages owned by the federally subsidized lenders Fannie Mae and Freddie Mac refinanced to take advantage of current low interest rates.

They also want rates to be decreased for five years for homeowners who are behind on mortgage payments and have filed for bankruptcy protection, reports CNSNews.com.

"There is no reason why we can't allow Fannie and Freddie to refinance all the mortgages that meet certain basic criteria,” said Rep. Lois Capps, D-Calif., at a press conference on Wednesday.

The Democrats also are pushing for a “Homeowner’s Bill of Rights” that, among other things, would loosen rules on when homeowners are allowed to refinance. Currently they may do so only if they are delinquent on payments.

“There is no reason why we can't streamline the system and eliminate needless obstacles. There is no reason why we can't help homeowners before they fall behind on their payments," said Capps.

Capps and her Democratic colleagues in California said the White House’s response to the mortgage crisis has been lackluster.

“Everything to date, as well intended as it may have been, has not provided the assistance that we need,” said Rep. Mike Thompson.

“The challenges that we are facing are exacerbated by an administration that has simply not gotten it right over and over and over,” said Rep. Dennis Cardoza.