WASHINGTON, DC -- Congressman Chaka Fattah (D-PA) applauds today’s move by several of the nation’s largest mortgage lenders to place a 30 day moratorium on foreclosing for homeowners who are severely delinquent on monthly payments. 

“The move,” Fattah said, “offers a lifeline to millions of American families sinking under the swelling current of debt.”

In a letter months ago, Fattah called on the mortgage industry and the Administration to work out a plan providing a 90 day moratorium on foreclosures. While today’s move falls short of that goal Fattah said, “It’s a sign that lenders are beginning to listen. There is not one single action that will solve our current housing crisis but today’s action by the industry is a significant step in the right direction.”

The mortgage companies decided to halt the escalating foreclosures in an effort to give borrowers and lenders an opportunity to work out payment plans.

Congressman Fattah says 30 days is not enough time to adequately address the growing foreclosure crisis.  “Until the Administration and industry leaders agree to a long term relief plan, more homeowners will fall further behind on their monthly obligations. The housing dam has broken; we can’t use a plug to stop it.”

Click here to view a copy of the letter sent to the White House on November 16, 2007, calling for a 90 day moratorium on foreclosures.