Congresswoman Maxine Waters Reacts to President Obama's Housing Proposal Released Today
Today, Rep. Waters released the following statement in response to President Obama's plan to help responsible homeowners and heal the housing mark.
"I think the plan announced by the President today has a lot of potential to help homeowners and our broader housing market. Allowing homeowners to refinance into FHA and improving the refinance process for those with GSE-backed loans, can result in savings for homeowners which they could use to rebuild equity or to stimulate consumer spending. However, I must note that while refinancing is helpful for a certain segment of borrowers, principal reduction remains the most effective means to assist underwater borrowers. It's the only approach that hasn't been tried yet and I call on the administration to fully implement a principal reduction program. Yesterday, I introduced legislation, H.R. 3841, the Principal Reduction Act, to require Fannie Mae and Freddie Mac to reduce principal on mortgages they own or guarantee. I hope that this legislation gets a serious look in Congress. I'd also like to commend the President for proposing a homeowners' bill of rights, which includes provisions similar to legislation I introduced last year, H.R. 1567, the Foreclosure Prevention and Sound Mortgage Servicing Act. It's time for Congress to focus on solving the housing crisis and I call on my Republican colleagues to stand behind America's homeowners through this proposal."