WASHINGTON, D.C .– Rep. Dennis Cardoza (D-Merced) called on President Barack Obama to include a far-reaching mortgage refinancing program such as his proposal, the Housing Opportunity and Mortgage Equity (HOME) Act (H.R. 383), in his soon-to-be-released national jobs initiative. President Obama will be addressing a joint session of Congress and the nation next Thursday, Sept. 8, to announce his economic proposal.
Cardoza's HOME Act would help up to 30 million struggling homeowners with mortgages backed by Fannie Mae or Freddie Mac to benefit from current historically low market interest rates and refinance for up to 40 years at a fixed single-digit rate, according to a news release from his office. This would significantly lower the homeowner’s monthly mortgage payments, resulting in fewer foreclosures, while stabilizing the housing market and the national economy.
In a letter to the President sent today, Cardoza urged the Administration to take decisive action to stem the ongoing foreclosure and economic crises that continue to devastate California's Central Valley and communities nationwide. Cardoza wrote,
“The three biggest cities in the area, Merced, Stockton, and Modesto, all have foreclosure rates ranking in the top 10 of cities nationwide. These cities also rank in the top six cities in the country for highest unemployment rates. Quite simply, the foreclosure and economic crisis affecting the Valley I love has reached a catastrophic level, and nothing short of a major refinancing initiative from the federal government will stem this crisis.”
“Mr. President, as you have stated, the time is now to take decisive action to shore up our nation’s economy by stabilizing the housing crisis. With this in mind, I strongly believe that the HOME Act is the common-sense plan desperately needed to give millions of struggling homeowners the economic assistance they have been hoping for.”
“None of the current housing programs have managed to turn the tide in this crisis, and it has become abundantly clear that only large-scale solutions will make a dent in our housing and economic problems. Narrowly designed programs deliver narrow results. We cannot afford more of the same, and time is not on our side. The longer we wait the more costly the impacts will be on the American people.”
“Our country needs the leadership that only their President can provide. Mr. President, I urge you to answer the call and act boldly.
“When you deliver your speech to Congress next Thursday, I will be sitting in the House Chamber listening attentively for your new proposals to solve the housing crisis. I know the people of California’s Central Valley – and millions of Americans across the country – will be watching for your leadership as well.”