Thirty-three members of California's Democratic congressional delegation have sent a letter to President Obama urging him and the Federal Housing Finance Agency (FHFA) to present a plan that addresses the problems facing the housing market.
‘Our current economic crisis began in the housing market,’ said the representatives in their letter. ‘Until the housing market is stabilized, our economy will not be able to fully recover. We hope you will act in the best interest of the American people who are facing extreme hardships to keep homeowners in their homes and stabilize the economy.’
The representatives offered a list of initiatives to pursue, including giving ‘all mortgages currently owned or guaranteed by Fannie Mae and Freddie Mac that meet basic criteria the opportunity to refinance at historically low market rates.’ They also called for the creation of a ‘Homeowner's Bill of Rights’ that would apply to the U.S. Department of Housing and Urban Development, the U.S. Department of Veterans Affairs, the Home Affordable Mortgage Program, the FHFA and private servicer modification programs.
Rep. Mike Thompson, D-Calif., noted that his constituents are among the hardest hit by the housing crisis, and he faulted the White House and the FHFA for not acting with greater speed.
‘Our economy will continue to suffer and taxpayer confidence will never return if we do not help hard-working families navigate through this mortgage nightmare,’ says Thompson. ‘Nothing the FHFA or the administration has done is working and Californians are the ones who are suffering. Families are living paycheck to paycheck, struggling to keep roofs over their heads. Doing nothing is not an option. Today we are calling on the White House and the FHFA to step up and take immediate action to help our communities and hard-working middle-class families who just want to keep their homes.’