A proposal put forward by federal regulators to define “safe” mortgages would raise refinancing costs for half the nation’s homeowners with home loans, a coalition of industry and other advocacy groups has said.
The Coalition for Sensible Housing Policy says that 25 million homeowners could be affected by a rule that would effectively require borrowers to have at least 25 percent equity in their homes to qualify for the best terms when refinancing a mortgage. The number amounts to more than half of U.S. homeowners who currently have a mortgage.