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start text Baltimore, Md. — startwidainctext Below are the prepared remarks of Congressman Elijah E. Cummings (Md.-7), a member of the Joint Economic Committee, delivered at a press conference in Baltimore this afternoon to discuss President Obama's Homeowner Affordability and Stability Plan.
Congressman Elijah E. Cummings
Press Statement on
President Obama’s Homeowner Affordability and Stability Plan
February 18, 2009
Further, another 55,693 households are projected to experience foreclosures in the next two years.
The spillover effects of these foreclosures are expected to touch another 1.2 million surrounding homes, which are projected to experience an average loss of $9,941 in individual property values, resulting in a statewide loss of $12 billion in home values.
The primary reason that I voted for the bailout plan for Wall Street was because I was assured by President Obama that some relief would be given to my constituents on Main Street who were losing their houses.
The President today kept his promise to the American people by extending a helping hand to our neighbors who are desperately trying to remain in their homes by introducing the Homeowner Affordability and Stability Plan.
This plan provides a road map that will enable us to stabilize our communities by reducing foreclosures.
President Obama has made it clear that we can no longer just talk about our nation’s problems and debate possible solutions.
We must begin to take bold action.
To that end, the plan he introduced today will help up to 9 million families restructure or refinance their mortgages to avoid foreclosure.
Among other steps, the plan will increase funding for Fannie Mae and Freddie Mac to enable them to carry out ambitious efforts to ensure mortgage affordability for responsible homeowners, and provide forward-looking confidence in the mortgage market.
The plan also provides $75 billion to help stabilize homes against continuing declines in home values.
Through the measures it creates, the plan will help not only those at immediate risk of foreclosure, but also those whose homes are now worth less than the value of the mortgages on those homes.
Together with the American Recovery and Reinvestment Act, which the President signed yesterday, this plan will help us begin to stabilize our communities and our national economy and help restore the dream of homeownership to millions of Americans.
The key components of the plan are:
I. ) Refinancing for Up to 5 Million Responsible Homeowners to Make
Their Mortgages More Affordable.
II. ) A $75 Billion Homeowner Stability Initiative to Reach Up to 4 Million
At-Risk Homeowners.
III. ) Supporting Low Mortgage Rates By Strengthening Confidence in Fannie
Mae and Freddie Mac
For many families, a low-cost refinancing could reduce mortgage payments by thousands of dollars per year.
The average homeowner could see his or her home value stabilized against declines in price by as much as $6,000 relative to what it would otherwise be -- without the Homeowner Stability Initiative.
The Obama plan is crucial in helping families who are facing foreclosure, as well as in assisting in the recovery of communities that have been harmed by the results of the foreclosure crisis.
Thank you.
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Today, President Obama laid out a decisive plan to help the millions of Americans who have lost or who are in jeopardy of losing the American dream of homeownership because of our country’s devastating foreclosure crisis.
Unfortunately, Maryland is not immune to this crisis. A drive down any street in Baltimore will lead past an increasing number of foreclosure signs placed in front of homes where families once lived comfortably.
In January, nearly one out of every 627 homes was in default in Maryland.
