With the number of home foreclosures still far too high, families in the Inland Empire and across the nation need help. Too many American families have fallen victim to the predatory lending practices that dominated much of the home mortgage market in the past decade.
In efforts to keep our children's futures safe and financially secure, I have reintroduced legislation that creates a new entity within the federal government that will be responsible for financing loans to families currently in foreclosure or serious default. The Family Foreclosure Rescue Corporation (FFRC) Act reinstitutes a Depression era concept to provide emergency refinance assistance to families who can no longer afford their mortgage payments.
The Family Foreclosure Rescue Corporation Act reintroduces a concept instituted by President Franklin Roosevelt during the Great Depression. President Roosevelt established the Home Owner's Loan Corporation to provide emergency refinance assistance to families who could no longer make their mortgage payments. Now, as our economy continues its slow recovery from the recent financial crisis, the FFRC will function under the same principles and allow families to refinance their mortgage through a government administered loan with a set interest rate.
My legislation establishes that:
* The FFRC will serve as a temporary entity that only accepts loan applications for three years. After the initial three years, the FFRC will function only to finish the administration of loans in the program;
* The FFRC will be run under the direction of a seven member board composed of appointees from the President, the Speaker of the House, and the Majority Leader of the Senate; and,
* In order to cover costs involved with the FFRC, the government will sell treasury bonds.
Our economic recovery is not complete until the housing market is back on track. Please know that I will continue to work to ensure that every American is given a fair opportunity to buy and keep their homes, even in times of economic decline.
JOE BACA, Congressman
43rd Congressional District