Congresswoman Barbara Lee & CA Democratic Members respond to Multi State Housing Settlement
Contact Kristal DeKleer: (202) 225-1882
WASHINGTON, D.C. – Today Congresswoman Lee, joined Rep. Zoe Lofgren and 29 members of the California Democratic Congressional Delegation, to release the following statement in response to the announced $25 billion multi-state housing settlement announcement:
“The settlement announced today is a step forward. Attorney General Harris fought hard to ensure that Californian homeowners would receive significant relief—a minimum of $12 billion to rebuild home equity, half of all the money in the settlement will come to California. We are also pleased that the agreement includes extensive mechanisms to hold the banks to their commitments.”
“However, as President Obama, Attorney General Harris and others have noted, this is not a complete solution to the foreclosure crisis in California. In fact, only a minority of California homeowners are eligible for this relief, which is limited to mortgages owned by the five banks involved in the settlement. Sixty-percent of California mortgages are held by Fannie Mae and Freddie Mac, and that is why we have consistently called for FHFA Acting Director Edward DeMarco to offer underwater homeowners principal reductions. The Federal Reserve and leading economists agree that principal reductions offer the best hope for stabilizing the housing market and minimizing creditor losses from foreclosures. In light of the commitments to principal reductions made by the banks in today’s settlement, it is clear that Acting Director DeMarco’s obstinance against principal reductions is misguided and untenable.”
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