Nadler Urges Justice For Underwater Mortgage Holders

The following is a press release from the office of U.S. Rep. Jerrold Nadler:

WASHINGTON, D.C. – Today, Congressman Jerrold Nadler (D-NY), a member of the Congressional Progressive Caucus, 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.

“The nation is still facing a tremendous obstacle to economic recovery: some 12 million Americans owe more money than their homes are worth,” said Nadler.  “After so many homeowners have been taken advantage of and afforded little opportunity to extricate themselves from financial ruin, it is critical to provide the justice and relief that we can.  Mr. DeMarco must do everything within his power to provide that justice.  Write downs on mortgages will keep struggling Americans in their homes, provide relief for middle class families, and save taxpayer money through preventing foreclosures.”

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.

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.

U.S. Rep. Jerrold Nadler represents New York’s 8th Congressional District, which includes Manhattan’s Upper West Side, Hell’s Kitchen, Chelsea, SoHo, Greenwich Village, TriBeCa, the Financial District and Battery Park City. In Brooklyn, the 8th District includes parts of Borough Park, Red Hook, Sunset Park, Bay Ridge, Bensonhurst, Coney Island, Brighton Beach, Gravesend, Dyker Heights, Bath Beach and Seagate.