WASHINGTON, D.C .– Congressman Dennis Cardoza (CA-18) said he reintroduced legislation to stop the onslaught of foreclosures that continues to devastate communities in California’s Central Valley and nationwide.
The Housing Opportunity and Mortgage Equity (HOME) Act, H.R. 363, would allow as many as 30 million homeowners with mortgages backed by Fannie Mae or Freddie Mac to benefit from the current historically low market interest rates and refinance for up to 40 years at a fixed rate. Refinancing would significantly lower the homeowner’s monthly mortgage payments, resulting in fewer foreclosures, and stabilizing the housing market and our economy, according to a news release from Cardoza's office.
“The HOME Act would provide a light at the end of the tunnel for the millions of homeowners struggling to make their monthly house payment,” said Congressman Cardoza. “The Band-aid solutions our government has offered so far have done little to stem the growing tide of foreclosures in this country, and we must take bold action if our economy is ever going to recover.
“The HOME Act is a far-reaching solution that will dramatically reduce the number of foreclosures at little to no cost to taxpayers. With the start of a new Congress, lawmakers from both parties must redouble our efforts and join together in seriously tackling the housing crisis by passing this bill.”
Since the HOME Act’s first introduction in January 2009, Cardoza's office said there have been several improvements to reflect input from leading economists and changes in the housing market. Moody’s Analytics Chief Economist Mark Zandi and Columbia Business School Senior Vice Dean Christopher Mayer both contributed their expertise and have spoken in support of the HOME Act as a comprehensive approach to stabilizing the housing market.
“The HOME Act will jump-start more mortgage refinancings, quickly helping stressed homeowners make their mortgage payments and avoid foreclosure, at little or no cost to taxpayers,” said Zandi today.
The HOME Act would come at little to no cost to taxpayers, according to the news release, because the fees for refinancing would be rolled into the new mortgages and penalties would be waived. Furthermore, since the federal government is ultimately liable for the mortgages issued by Fannie and Freddie, the HOME Act would help reduce that liability by reducing the number of foreclosures.
The HOME Act would also reinvigorate the economy by giving millions of Americans a reduced mortgage payment, resulting in more money to spend on purchases, the news release continued Morgan Stanley and JP Morgan Chase have evaluated potential savings from a refinancing program like the HOME Act and have estimated it would reduce mortgage payments by $50 billion or more annually.
Cardoza’s congressional district (Merced, Modesto, Stockton) has been ground-zero for the housing crisis, struggling with some of the highest foreclosure rates in the country.
The HOME Act has 22 co-sponsors, in addition to Cardoza.
E-Mail
Print
