WASHINGTON, DC -- The news is alarming, the rate of mortgage foreclosures – already at historic heights - is expected to remain above normal levels for the next 18 months.  Recognizing the unprecedented crisis, Congressman Chaka Fattah (D-PA), Chairman of the Congressional Urban Caucus, says extreme measures must be taken to address the severe foreclosure problem. He is calling on the President to have the mortgage industry declare a short term moratorium on all foreclosures and to convene a national summit of congressional, industry and community leaders to develop a long term strategy that would effectively resolve the foreclosure crisis.

Below is a copy of the letter Congressman Fattah remitted to the President:

November 16, 2007

The Honorable George W. Bush
President
United States of America
The White House
1600 Pennsylvania Avenue
Washington, DC  20500

Dear Mr. President;

As you are keenly aware, hundreds of thousands of Americans are facing a devastating financial crisis. All around the country, residents are losing their homes to foreclosure at alarming rates.  In Stockton, California, 1 in every 31 homes is being foreclosed on, and in Detroit it’s one in every 33 homes.  As Chairman of the Congressional Urban Caucus, I am urging that you convene a bi-partisan summit of congressional, industry and community leaders to deal with the mortgage dilemma and that you call on the industry to declare a six month moratorium on all foreclosures.  The moratorium would be a stop gap measure until long term strategies can be implemented to address this national crisis.

While I commend your Administration for the diligent work it has undertaken to help alleviate the rising number of foreclosures with programs such as the Hope Now Alliance, respectfully, more must be done. Time, Mr. President, is of the essence.

As foreclosures continue to spiral out of control, various steps have been taken to address the problem, including a vote by the House of Representatives to make lenders responsible for knowing whether borrowers can repay loans, and fining them for steering people to risky subprime loans when other funding is available. Again, more must be done to assist the homeowner and stave off this growing crisis.

Across the country, numerous states are facing unprecedented foreclosure rates.  Nearly 45, 000 homes in Pennsylvania financed with subprime mortgages are predicted to go into foreclosure by the end of 2009. In response, Governor Rendell has initiated the Refinance to an Affordable Loan, or REAL, and the Homeowner Equity Recovery Opportunity, or HERO.  Both are statewide programs to assist owners in their pursuit to save their homes.

Four years ago when the subtle rise in the foreclosure rate began, I introduced the Homeowner’s Emergency Mortgage Assistance Act, legislation that would assist homeowners experiencing unavoidable, temporary difficulty making payments on their mortgages.  I introduced and saw passed identical legislation while serving in the Pennsylvania State House. To date, the plan has enabled more than 30,000 residents to retain ownership of their homes.    

With more than 2 million mortgages nationwide scheduled to readjust by the end of 2008, we must act now. I look forward to working with your Administration to keep the dream of homeownership from turning into a nightmare for millions of struggling Americans.

Very truly yours,

Chaka Fattah
Member of Congress