Much as the state’s U.S. Senators did yesterday, members of the California Democratic Congressional Delegation today urged President Obama to act immediately to address the troubled housing market.
The letter, drafted by delegation chairwoman Rep. Zoe Lofgren, D-San Jose, calls on President Obama to urge the Federal Housing Finance Agency to establish a plan to refinance all mortgages owned or guaranteed by Fannie Mae and Freddie Mac, and to push for a major principal reduction plan for underwater homeowners, such as modifications in coordination with Chapter 13 bankruptcy filings.
It also asks the president to institute a “Homeowner’s Bill Of Rights” that would apply to HAMP, FHFA, HUD, VA and private servicer modification programs. The lawmakers want this to make the process homeowner-friendly by ensuring a single point of contact; requiring servicers to review documents within a timely fashion and disclose information; and banning “advanced fees.” They also want it to eliminate obstacles to effective modifications by allowing for flexibility in the debt-to-income ratio; ending the requirement that homeowners be delinquent in order to be eligible for a loan modification; ending dual tracking; and requiring that servicers not report adverse credit information while trial or permanent modification is underway.
Finally, they want this bill of rights to ensure accountability and establish an appeals process by creating an Office of Consumer Advocate, authorizing random audits of modifications, and establishing an independent appeals process for homeowners who believe their modification has been improperly rejected or handled in violation of program rules.
Among those joining Lofgren at a Capitol Hill news conference announcing the letter this morning were Rep. Barbara Lee, D-Oakland; Rep. Pete Stark, D-Fremont; Rep. Jerry McNerney, D-Pleasanton; Rep. John Garamendi, D-Walnut Grove; Rep. Jackie Speier, D-Hillsborough; and Rep. Anna Eshoo, D-Palo Alto.
Read the letter, after the jump…