Rep. Lofgren & CA Democratic Members respond to Multi-State Housing Settlement

Washington, DC – Today 29 members of the California Democratic Congressional Delegation, led by Rep. Zoe Lofgren (D-CA), released the following statement in response to the $25 billion multi-state housing settlement announcement:

"The settlement announced today is a step forward. Attorney General Harris fought hard to ensure that Californian homeowners would receive significant relief—a minimum of $12 billion to rebuild home equity, half of all the money in the settlement will come to California. We are also pleased that the agreement includes extensive mechanisms to hold the banks to their commitments."

"However, as President Obama, Attorney General Harris and others have noted, this is not a complete solution to the foreclosure crisis in California. In fact, only a minority of California homeowners are eligible for this relief, which is limited to mortgages owned by the five banks involved in the settlement. Sixty-percent of California mortgages are held by Fannie Mae and Freddie Mac, and that is why we have consistently called for FHFA Acting Director Edward DeMarco to offer principal reductions for these loans. The Federal Reserve and leading economists agree that principal reductions offer the best hope for stabilizing the housing market and minimizing creditor losses from foreclosures. In light of the commitments to principal reductions made by the banks in today's settlement, it is clear that Acting Director DeMarco's obstinance against principal reductions is misguided and untenable."

This statement is from the following Representatives: Joe Baca; Karen Bass; Xavier Becerra; Howard Berman; Lois Capps; Judy Chu; Susan Davis; Anna G. Eshoo; Sam Farr; Bob Filner; John Garamendi; Janice Hahn; Mike Honda; Barbara Lee; Zoe Lofgren; Doris Matsui; Jerry McNerney; George Miller; Grace Napolitano; Laura Richardson; Lucille Roybal-Allard; Linda Sanchez; Loretta Sanchez; Jackie Speier; Pete Stark; Mike Thompson; Maxine Waters; Henry Waxman; Lynn Woolsey