News From…
Congressman Dennis Cardoza
18th Congressional District of California
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Congressman Cardoza praises Paulson’s action and requests next steps |
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| FOR IMMEDIATE RELEASE November 23, 2008 |
CONTACT: Mike Jensen (202) 225-6131 |
| WASHINGTON – Today Congressman Dennis Cardoza praised Treasury Secretary Henry Paulson’s announcement that he would heed the request of the congressman and other top House leaders to purchase up to $600 billion in toxic mortgages that have clogged the nation’s credit system. Congressman Cardoza further requested that the plan be part of a larger stimulus package that would allow refinancing of mortgages by all credit-worthy Americans.
“I have long said that bad mortgages are at the heart of our economic crisis and I have in no uncertain terms demanded Treasury Secretary Paulson follow through on his initial plans to purchase these bad assets,” said Congressman Cardoza. “Although I am pleased with his response today, I am still calling on the Treasury to not only assist Freddie Mac and Fannie Mae with faulty mortgages, but also to allow all credit-worthy Americans to refinance their mortgages for up to 30 years at interest rates of 4.5 percent.”
Even before the economic meltdown, Congressman Cardoza advocated strongly to his colleagues and House leadership to pursue this far-reaching plan as a way to stabilize the housing market and to achieve tangible economic recovery for cities such as Los Banos, Merced, Modesto and Stockton. “Plain and simple, allowing a homeowner who has a 6 or 7 percent interest rate to refinance at 4.5 percent puts money in their pocket, which in turn leads to more spending and a direct infusion of cash into our economy,” Congressman Cardoza said. “I am pleased my message finally got through to Secretary Paulson. Now he must follow through and ensure that every step is taken to rework mortgages and reign in the spiraling foreclosures.” On Monday, former Republican presidential candidate and publisher Steve Forbes appeared on CNN and made the case for the same principle of lowering mortgages rates for mortgages held by government owned Fannie Mae and Freddie Mac. |
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