Legislation was re-introduced in the U.S. Senate this week to encourage refinancing, and the revamped bill could be harder for Republicans to oppose - although it is unclear whether the bill has significant Republican support to pass the Senate.

The measure is part of a housing reform package called for by President Obama earler this year which is intended to make it easier for certain homeowners who are current on their loans to take advantage of low interest rates and reduce their monthly mortgage bill, even if they owe more than their home is worth.

The revised bill removes penalties for lenders and mortgage insurers who stand in the way of refinancing. A provision was also removed that would have broadened the pool of eligible borrowers to those whose loans originated through June 2010, instead of the previous cutoff of June 2009.