Congressman Wm. Lacy Clay (D) Missouri, Ranking Member on the House Financial Services Subcommittee on Domestic Monetary Policy, and a leading member of the Congressional Progressive Caucus, joined advocates in New York, Washington, D.C. and Southern California today 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," Congressman Clay 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 Maeown 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 deserve justice," Mr. Clay said. "Write downs are about keeping families in their homesand saving taxpayers money in the long run 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 from across the nation who are struggling to keep their homes. Protests were held yesterday at regional Freddie Mac offices demanding fair negotiations for themselves and other Americans who have been evicted from their homes.