Congresswoman Doris Matsui (CA-05) voted in favor of legislation today that brings assistance and fairness to the millions of American families who are facing foreclosure. The Helping Families Save Their Homes Act, H.R. 1106, will help homeowners in the hardest hit areas in the country, including Sacramento. The bill also included an amendment offered by Rep. Matsui, which strongly encourages financial institutions not to foreclose on any principal homeowner until the loan modification program included in this bill - and the President Obama’s Homeowner Affordability and Stability Plan - are implemented and deemed operational by the Department of Housing and Urban Affairs (HUD) and the Department of the Treasury.
“Sacramento has one of the highest rates of foreclosure in the country, and the approval of this bill demonstrates Democrats’ commitment to helping communities like ours’ reduce the foreclosures that are hurting our neighborhoods,” stated Congresswoman Matsui. “This legislation goes to the root of our current economic problems by making it easier for homeowners to afford their mortgage payments, and consequently reducing the number of foreclosures. It should incentivize financial institutions to modify a greater number of troubled loans than they have done to date. One of my top priorities in Congress is to ease the burden on homeowners as quickly as possible, and help local residents avoid foreclosures and financial ruin,” said Rep. Matsui.
Rep. Matsui has been a national leader on this issue, and was the first Member of Congress to introduce legislation calling for a moratorium on foreclosures. In June of 2008, she introduced H.R. 527, the Home Retention and Economic Stabilization Act of 2009, which called for a time-out on additional foreclosures. Also, last month, Congresswoman Matsui and House Financial Services Committee Chairman Barney Frank sent a letter to U.S. Treasury Secretary Timothy Geithner, urging financial institutions to halt foreclosures until the Administration’s plan is in place; JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., and Wells Fargo & Co., quickly followed suit.
The Helping Families Save Their Homes Act gives bankruptcy judges the ability to modify existing mortgages for families who file for Chapter 13 bankruptcy as an incentive to spur lenders into voluntarily modifying loans. It gives lenders the confidence to modify loans by protecting them from some lawsuits, and it spurs mortgage refinancing by fixing the Federal Housing Administration’s Hope for Homeowners Program, reducing fees and offering new incentives for lenders. By including homeowners with a single home, this bill will make the difference between thousands of Americans keeping their homes, without spending a single cent of federal funds.
“I will continue to work with President Obama, HUD Secretary Donovan, and my colleagues in Congress to further bring about comprehensive housing reform, and provide fast relief for Sacramento families and responsible homeowners around the country, ”said Rep. Matsui.
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