Congressman Dennis Cardoza
18th Congressional District of California

WASHINGTON, DC – Congressman Dennis Cardoza convened a bipartisan meeting with newly-appointed Housing Secretary Shaun Donovan Tuesday to share his concerns over the Central Valley’s housing crisis. Congressman Cardoza requested the meeting to express his concerns that the communities most in need of federal foreclosure assistance have not received it.

Cardoza was joined by 10 other Republican and Democratic members representing areas similar to the Central Valley with significant foreclosures.

“The devil is in the details of the President’s plan, but I am encouraged by what I heard from the Housing Secretary,” said Congressman Cardoza, explaining that Secretary Donovan had provided further details about President Obama’s foreclosure proposal. “This is a good first step. Areas that have been hit the hardest by the foreclosure crisis, such as the San Joaquin Valley, may finally see some relief.”

Congressman Cardoza was told that a portion of President Obama’s plan will be specifically aimed at areas like the Central Valley. The Secretary stated that $75 billion in federal funds will be allocated for loan modifications for people who are under water, where the equity in their homes has plummeted and the house is worth far less than the size of the mortgage. The Secretary said people would be able to refinance at historically low interest rates on mortgages up to 150 percent of the current value of the home.

In January, Congressman Cardoza introduced the HOME Act. The bill sought to reward those who have consistently paid their mortgages while also providing assistance to those who need it. The HOME Act calls for refinancing mortgages at fixed 4-percent interest rates for up to 40-year terms.

“I believe the HOME Act would have had a more far-reaching impact on the housing crisis and our economy,” said Congressman Cardoza. “However, I believe President Obama’s plan is a step in the right direction of addressing the hardest hit areas.”

Congressman Cardoza expressed his appreciation to the housing secretary for attending the meeting and welcoming a bipartisan group of congressional representatives.

“I appreciate President Obama’s and Secretary Donovan’s willingness the past few months to listen to my concerns about inadequate foreclosure assistance in economic disaster areas such as the Central Valley,” said Congressman Cardoza. “I left this meeting with a feeling that Secretary Donovan is willing to work with us to ensure the hardest hit areas are not overlooked.”

Further details regarding President Obama’s housing plan will be made available in March.