The Mortgage Crisis
The foreclosure crisis has affected millions of Americans, including hundreds of thousands in the 18 th district of California. For many of my constituents, mortgage payments are simply too expensive for them to pay, and they are left with few options other than foreclosure.
 As you know, the U.S. housing market is in turmoil, and foreclosure rates across the country have skyrocketed to historic levels. The Central Valley, particularly Stockton, Modesto, and Merced, has been among the hardest hit areas in the nation. In San Joaquin County, for example over 6,000 homes are in pre-foreclosure, and nearly 3,000 have been foreclosed upon this year alone. Since January 2007, more than 7,000 have been foreclosed upon. Over 4,000 homes in Stanislaus County and more than 2,000 in Merced County are also in pre-foreclosure, making the 18 th district one of the worst hit by the foreclosure crisis in the entire country.
Foreclosures have uprooted families and pushed homeownership beyond the reach of many of my constituents. Abandoned houses are crumbling under the weight of vandalism and disrepair. Neighborhoods face steep declines in home equity, and lenders have been reluctant to lend in regions with foreclosure rates as high as the Valley's. Unfortunately, this crisis appears to be far from over, and families already burdened by high gas and food costs need some relief.
In response to this foreclosure epidemic, the House passed the Housing and Economic Recovery Act. This legislation, signed into law by President Bush, addresses the housing crisis on multiple levels. It includes a program that allows borrowers to restructure their mortgages into a fixed rate, 30-year loan backed by the Federal Housing Administration. It provides $4 billion to state and local governments to purchase foreclosed homes and sell them to low-income homebuyers. It also includes $180 million to fund foreclosure prevention counseling and tax credits to help first-time homeowners take advantage of low market rates.
This law will not fix the entire housing crisis, but it will offer some relief to my constituents struggling to make their mortgage payments. Although I did not agree with all of the legislation's provisions and believe more needs to be done, I strongly support any efforts to help my district and the country recover from this economic crisis. I will continue to pursue initiatives that help my constituents overcome these difficult times without unnecessarily increasing spending or bailing out borrowers and lenders.
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Priorities
• Helping my constituents at risk of foreclosure to stay in their homes by encouraging increased communication between lenders and borrowers.
• Support local government efforts to increase financial literacy so that individuals are equipped with the necessary knowledge to navigate the complicated house-buying process.
• Assisting my constituents with the post-foreclosure burdens of finding housing and returning to financially stable ground.
• Making sure the loan limits for government-backed loans are high enough to reflect California 's expensive housing market. |
Accomplishments
• I offered an amendment to H.R. 1852, the Expanding Homeownership Act, that would increase the loan limits for the government sponsored enterprises so that individuals in California could also take advantage of these government-backed mortgages, despite the state's expensive housing market.
Press Release on Cardoza Amendment
See bill as passed.
• I strongly supported HR 3221, the Housing and Economic Recovery Act of 2008, and will work to help my constituents take advantage of the FHA loan workout provisions..
See bill as passed.
• I have held a number of workshops where constituents could meet with lenders to discuss loan restructuring options.
Press Release on March Workshop |
