On Thursday Senators Robert Menendez (D-NJ) and Barbara Boxer (D-CA) introduced a new legislation called Responsible Homeowner Refinancing Act of 2012, which aims to further take out the barriers to refinancing through the Home Affordable Refinance Program (HARP).

The key point of this legislation is to encourage competition by allowing a different servicer to refinance a mortgage on the same terms that apply to the current servicer. It also proposed the expansion of HARP 2.0 to cover loans originated between June 2009 and May 2010.    Royal Bank of Scotland analysts think that there are many reasons that Congress will probably not pass the Menendez-Boxer legislation.

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