Congressman Dennis Cardoza
18th Congressional District of California

WASHINGTON – Congressman Dennis Cardoza introduced legislation today that seeks to reverse the housing crisis by significantly reducing homeowners’ mortgage payments. Under the Housing Opportunity and Mortgage Equity (HOME) Act, all current homeowners and qualified borrowers could receive a fixed 4-percent interest rate with a fixed 30-year term.
 
“Plain and simple, at the root of this recession is the nation’s housing crisis,” said Congressman Cardoza. “We cannot continue to throw money into the wind in hopes of turning our economy around. We must strike at the heart of the economic downturn and that means taking far-reaching action to reverse the housing crisis.”

Congressman Cardoza said the legislation would benefit all homeowners and would-be owners. Many homeowners have faithfully paid their bill each month but have not been able to refinance their mortgage due to lost equity. Other homeowners are struggling to meet their payments. Such homeowners, and buyers, would be assisted through the legislation.

Last year, the federal government became the conservator of mortgage holders Fannie Mae and Freddie Mac. Congressman Cardoza’s legislation would use the conservatorship of Fannie and Freddie to purchase mortgages from lenders who are willing to refinance or offer home loans at a 4-percent rate with 30-year terms. Many have suggested that such a method provides the greatest value to the taxpayer when compared to other stimulus and tax-cut programs being considered.

“Such government intervention would have been unimaginable a year ago,” said Congressman Cardoza of his legislation. “However, we have reached a situation where such action is vital. This legislation provides direct benefit to the economy, to homeowners and to banks.  And it’s the only economic stimulus package that will provide the long-term housing and economic stabilization this country needs.”