Congresswoman Linda T. Sánchez (CA-39) today released the following statement regarding the decision by Fannie Mae and Freddie Mac to participate in the "Keep Your Home California," the state-run program which helps homeowners at-risk of foreclosure. Currently, Fannie Mae and Freddie Mac own roughly 62% of outstanding mortgages in California.
"I am encouraged by the long overdue decision by Fannie Mae and Freddie Mac to sign on to "Keep Your Home California.' It is a positive first step in helping more homeowners stay in their homes," said Congresswoman Sánchez. "Principal reduction is an important tool in foreclosure prevention because it means lower monthly mortgage payments for underwater homeowners. While much more work needs to be done to solve the housing crisis, I am hopeful this decision by Fannie and Freddie will help provide much needed relief for California homeowners."