Washington, DC – Today 32 Members of the California Democratic Congressional Delegation, led by Rep. Zoe Lofgren (D-CA), released the following statement in response to Acting Director of the Federal Housing Finance Agency (FHFA) Ed DeMarco's decision to prevent Fannie Mae or Freddie Mac from offering mortgage principal write-down relief for underwater homeowners:
"The American people, and our economy, are the real losers today with FHFA Acting Director DeMarco's decision. Economists from left to right in the political spectrum have called for targeted mortgage principal write-downs to help underwater homeowners stay in their homes. Even FHFA's latest analysis, as reported in the Wall Street Journal, says write-downs would yield $3.6 billion in savings and help 500,000 borrowers stay in their homes. By doing so, we could stop new waves of foreclosures from eroding surrounding neighborhood property values or adding to the multi-billion dollar mortgage debt weighing down our recovery.
"It is astonishing that Mr. DeMarco refuses to save taxpayers billions of dollars while boosting our economy and helping to keep hundreds of thousands of American families in their homes. This decision has no credibility or basis in fact and should make Americans question what Mr. DeMarco's real reasons are for not acting on his authority to help responsible families stay in their homes.
"In times of crisis we expect government officials to lead in the best interest of our country. Rather than make a case against allowing write-downs, Mr. DeMarco today has cemented the case for his own incompetency and failure to lead. Sadly, the American people will pay the price for his failures."
The California Democratic Congressional Delegation has been actively involved trying to address the foreclosure crisis, repeatedly calling for action to help homeowners and resuscitate the housing market, including a letter in February signed by 116 Members of Congress.
This statement is from the following Representatives: Joe Baca; Karen Bass; Xavier Becerra; Howard Berman; Lois Capps; Judy Chu; Jim Costa; Susan Davis; Anna G. Eshoo; Sam Farr; Bob Filner; John Garamendi; Janice Hahn; Mike Honda; Barbara Lee; Zoe Lofgren; Doris Matsui; Jerry McNerney; George Miller; Grace Napolitano; Laura Richardson; Lucille Roybal-Allard; Linda Sanchez; Loretta Sanchez; Adam Schiff; Brad Sherman; Jackie Speier; Pete Stark; Mike Thompson; Maxine Waters; Henry Waxman; Lynn Woolsey
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