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Washington, DC—Congressman Elijah E. Cummings (Md.-07), a member of the Joint Economic Committee released the following statement today in response to President Bush’s plan to freeze a small selection of subprime interest rates over a period of five years:
“The subprime lending crisis and its subsequent effects on our overall economy is a very complex problem that requires some level of government intervention. There are 1.4 million families who lost their homes to foreclosure this year, and another 2 million families are at risk. In that its very conception acknowledges these facts, the President’s plan should be applauded. However, we must not mistake this for anything more than it is: not enough.
“The President’s plan will help only one small group of the millions of families who are in danger of losing their homes, leaving the remaining 80 percent of people—many of whom are minorities—literally out in the cold. We need to enact a permanent solution that will help everyone who is struggling through this crisis—not just a five year plan assisting a select few.
“To truly help all of the families in this bind, we need a plan that includes help for those unfortunate enough to have found themselves a month behind on their mortgages. We need to protect our neighbors from losing their homes due to the unforeseen doubling of payments caused by adjustable rate mortgages that are occurring right now—not just those whose ARMs reset next year. We need a clear definition of what constitutes an ability to continue making mortgage payments at higher rates. Will young families continue to be trapped making skyrocketing mortgage payments at the expense of paying off credit card bills or student loans because they are deemed able to afford the higher payments? The President’s plan does not seem to address these essential needs.
“Furthermore, I am concerned that the vast majority of the President’s address to discuss his plan was nothing more than another grossly misleading speech taking a cheap shot at Congress. This unnecessary partisan pettiness is illustrative of the stubbornness and refusal to compromise that is preventing America from getting back on the right track. It upsets me greatly that President Bush would try to play politics with millions of hardworking families who are helplessly standing by watching their American dreams of homeownership crumble into nightmares. It is my hope that he will immediately revisit this issue to expand the assistance to all who are suffering, and I look forward to working with him when he does.”
Congressman Cummings encourages any constituents struggling with mortgage problems to call the NeighborWorks Hopeline at 1-888-995-HOPE.
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