Rep. Chu Calls for Justice for Underwater Mortgage Holders

Mar 1, 2012 Issues: Housing and Foreclosures

Washington, D.C. – Congresswoman Chu, a member of the Congressional Progressive Caucus (CPC), joined advocates in New York, Washington, D.C. and Southern California in calling on Edward DeMarco, the Acting Director of the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, to write down principal amounts for struggling homeowners.

“Twelve million Americans owe more money than their home is worth,” Congresswoman Chu 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.”

Combined, Freddie Mac and Fannie Mae own or guarantee more than half of all mortgages in the country. DeMarco has faced calls for his resignation for refusing principal reduction, sometimes called “debt forgiveness,” for Freddie and Fannie mortgage holders.   

“Underwater homeowners need justice,” Congresswoman Chu 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.”

This call echoes that of a coalition of progressive organizations and families struggling to keep their homes. The coalition includes Bowie, Maryland homeowner Bertina Jones, U.S. Marine Arturo de los Santos in Southern California, and advocates for Mr. de los Santos in New York. Protests were held yesterday at regional Freddie Mac offices demanding fair negotiations for themselves and other Americans who have been evicted from their homes.