With over 11 million families drowning from underwater mortgages, homeowners need solutions yesterday. Today, Ed De Marco delayed relief for millions by announcing the FHFA was indefinitely postponing its decision on principal reduction. Read Rebuild the Dream’s statement on the delay:
Rebuild the Dream response to FHFA's delays:Ed DeMarco's foot-dragging is irresponsible and unjustifiableThe FHFA announced today that they are indefinitely postponing a widely anticipated decision regarding whether they will implement principal reduction as a solution for underwater homeowners.Rebuild the Dream finds this delay irresponsible and unjustifiable, in the face of a mountain of evidence favoring principal reduction, and after calls for principal reduction from economists, experts, HUD Secretary Sean Donovan, Treasury Secretary Timothy Geithner, and countless members of Congress. Even Fannie Mae and Freddie Mac -- the enterprises Mr. DeMarco oversees -- disagree with him on the issue of principal reduction. Studies released a month ago by Fannie Mae and Freddie Mac show that principal reduction is a workable, net-positive solution for taxpayers and for struggling homeowners."Rebuild the Dream's membership includes thousands of underwater homeowners across the country. These struggling homeowners tell us they are appalled and deeply distressed by how slowly FHFA is moving on this critical issue," said Ian Kim, Director of Campaigns at Rebuild the Dream. "These homeowners and their families are drowning, and Mr. DeMarco has a lifeline, called principal reduction. He should be moving heaven and earth to help save these homeowners. Instead he's dragging his feet and taking his time."Since February, Rebuild the Dream has been calling on Mr. DeMarco to move forward on principal reduction, or else be removed as Director of the FHFA."With or without Mr. DeMarco, the Obama Administration must implement broad-scale principal reduction, without delay," said Ian Kim. "Principal reduction is key to allowing underwater homeowners to stay in their homes and communities, and it is key to unshackling our nation's economic recovery."
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