Congressman Dennis Cardoza
18th Congressional District of California

WASHINGTON, DC – Congressman Dennis Cardoza announced acceptance today of an amendment he proposed that would require the Treasury Secretary to evaluate all federal foreclosure programs to make sure they are providing relief in the hardest-hit areas.  Additionally, the step could provide a significant avenue for enacting his proposal to stabilize the foreclosure crisis with fixed, lowered mortgages rates.

“This by no means is the end to our problems,” Congressman Cardoza said. “But this amendment is intended to ensure federal foreclosure prevention programs are working in the areas that need them most, areas like the Central Valley. Above all else, this amendment aims to direct TARP funds toward the original intent as they were proposed by Treasury Secretary Hank Paulson in October – to purchase toxic mortgage assets that have lead to the foreclosure crisis.”

Specifically, the amendment calls on the Treasury Secretary to establish “Housing Disaster Areas” and to assess whether federal programs are substantially reducing foreclosure rates in those designated regions. Housing Disaster Areas are defined as the areas with the highest foreclosure rates and the greatest decline in home prices. The amendment also requires the Treasury Secretary to consider alternative foreclosure prevention proposals if existing programs are not working. 

One alternative proposal the amendment asks the Secretary to consider is the same plan outlined in Congressman Cardoza’s bill, the Housing Opportunity and Mortgage Equity (HOME) Act, H.R. 230.  The HOME Act would make available 30-year, 4-percent fixed-rate mortgages to all eligible homeowners and homebuyers, using the conservatorship of Fannie Mae and Freddie Mac.  

“This amendment is a step toward getting more support for the HOME Act,” he said, “and I will continue to work to build more support for my bill.”

Congressman Cardoza’s amendment was included in legislation that was introduced last week by Financial Services Committee Chairman Barney Frank. That bill aims to direct TARP economic recovery funds toward foreclosure prevention efforts and seeks to increase transparency and accountability in the TARP program.

During floor debate on Frank’s legislation, Chairman Frank complimented Congressman Cardoza for his continued work on behalf of those facing foreclosure, stating that Congressman Cardoza’s “eloquence on behalf of the people facing foreclosure cannot fail to move anyone who listens to him.” In September, Chairman Frank conducted a joint field hearing with Congressman Cardoza on the Valley’s foreclosure crisis in Stockton. During the floor debate this week in Washington, Chairman Frank expressed his commitment to working with Mr. Cardoza on the housing foreclosure crisis.

“I am very pleased to see my amendment included,” said Congressman Cardoza. “I am grateful for Chairman Frank’s support. I will continue to pursue every possible avenue to put an end to the foreclosure crisis and turn this economy around.”