For Immediate Release
May 1, 2008 |
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FOR MORE INFORMATION:
Cullen Schwarz
Office: 202.225.4961 |
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House Committee Approves Legislation to Help Struggling Homeowners |
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Legislation Co-Sponsored by Rep. Levin Would Help
Refinance Home Loans
Oakland, Macomb and Wayne County Foreclosure Rates
Among Highest in U.S. |
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(Washington D.C.)- In response to the nationwide economic downturn caused by the housing and credit crisis, members of the House Financial Services Committee today approved legislation to combat the unprecedented rise in foreclosures and help struggling homeowners refinance their mortgages.
“The housing crisis is central to the economic turmoil we are now facing,” said Rep. Levin, an original co-sponsor of the legislation. “To fully address this crisis, Congress must come to the aid of struggling homeowners, not just the financial markets. This legislation is particularly beneficial to Southeast Michigan, where foreclosure rates have been among the highest in the nation.”
According to RealtyTrac, Inc., Macomb and Oakland Counties’ foreclosure rates are currently third and sixth highest among all counties in Michigan, with Wayne County’s rate the highest. All three counties’ rates are in the top 5% among all counties in the nation. In 2007, the Detroit-area had the highest foreclosure rate in the United States. RealtyTrac announced Tuesday that nationwide foreclosure filings in the first quarter of 2008 are more than double what they were last year.
The legislation approved today, H.R. 5830, the FHA Housing and Homeowner Retention Act, would allow the Federal Housing Administration to insure up to $300 billion in new loans to help borrowers at risk of foreclosure refinance into viable mortgages. The Financial Services Committee estimates the ultimate cost of the program to be between $3 and $6 billion.
The new insurance would be offered only if lenders agree to accept 85% of the home’s current value as payment in full. While lenders would take a loss by accepting less than the full amount of the original loan, the costs of foreclosure for lenders is almost always greater.
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To Contact Congressman Levin: -
Email Congressman Levin In Michigan: 27085 Gratiot Ave, Roseville, MI 48066 | (586) 498-7122 | (248) 968-2025
In Washington: 1236 Longworth House Office Building, Washington, DC 20515 | (202) 225-4961
