Progressive champions and Congressmen Raul Grijalva and Keith Ellison joined activists around the nation to ask the Federal Housing Finance Agency to assistant struggling homeowners by writing down mortgage principals.
The agency, run by acting Director Edward DeMarco, oversees Fannie Mae and Freddie Mac. Together the two own or guarantee more than half of the mortgages in the country.
“Twelve million Americans owe more money than their home is worth,” Grijalva and Ellison said. “The American people have been duped, lied to, and kicked out of their homes, and now it’s time for Mr. DeMarco to stand up and do right by them.”
By writing down the mortgages, the two co-chairs of the Congressional Progressive Caucus believe homeowners would have a better chance of staying put. Millions of American families have found themselves without a roof over their heads after banks failed to work with them.
“Underwater homeowners need justice,” Grijalva and Ellison said. “Write downs are about keeping families in their homes and saving taxpayers money by preventing foreclosures. Simple, straightforward principal reductions are a good way to prevent the foreclosure crisis anchor from dragging down the U.S. recovery.”
Home values plummeted along with the economy and families are currently paying more for their homes than they are worth. Keeping these families in their homes makes good moral and economic sense. Adding a foreclosure to their credit history places an incredibly burden on future purchases and it throws them into disarray.
Photo by Nick Bastian