Every day, 2,225 Americans lose their homes. With each passing day Ed DeMarco stalls making a decision on principal reduction that will save millions of underwater homes across the country, over 2,000 Americans are evicted from their homes. The PICO National Network's Gordon Whitman reports that DeMarco's logic for refusing principal reduction no longer makes economic sense.
Housing experts have eviscerated DeMarco's analysis. At a March 15, 2012 Senate Hearing Laurie Goodman, Senior Managing Director at Amherst Securities pointed to three fundamental flaws in his calculations and called on DeMarco to reverse his blanket opposition to writing down mortgage balances. I've heard that economists who work for DeMarco and the entities he regulates have told him that principal reduction is a no-brainer. According to well-respected report by Moody's Investment Services, even without the increased subsidies, reducing principal makes financial sense because it increases the chances that homeowners will stay current on their mortgages.
By allowing homeowners to do principal reductions, the loans will more secure, worth more to investors and help millions of homeowners across the nation. In the meantime, each day DeMarco refuses principal reductions for underwater homeowners, 2,225 Americans will lose their homes, ruin their credit and be further away from achieving their American Dream. Take action today. Sign the petition to tell President Obama to fire Ed DeMarco and appoint someone who is willing to help homeowners underwater on their mortgages.