Backs MA Congressmen, Attorney General Coakley Calling on Federal Housing Finance Agency to Take Action To Prevent Unnecessary Foreclosures
BOSTON – It is past time for the Federal Housing Finance Agency (FHFA) to step up and help prevent unnecessary foreclosures in Massachusetts, said Consumer Advocate Elizabeth Warren, reinforcing calls from members of the Massachusetts Congressional delegation and Attorney General Martha Coakley.
Warren, one of the nation’s experts on bankruptcy, credit and housing finance, said she is speaking out to amplify calls from Congress and the Massachusetts Attorney General and to increase pressure on the FHFA to take action.
"The foot-dragging in Washington has stalled economic recovery and has hurt our families," said Warren. "We need a housing policy that fires on all cylinders: principal write-downs, refinancing options, cash for keys, and short sales."
Warren long has advocated for the federal government to take more aggressive actions to stabilize the housing market. As the principal architect of the Consumer Financial Protection Bureau, a government watchdog agency that protects consumers from the financial tricks and traps hidden in mortgages, credit cards, and other financial products, Warren pushed for greater accountability and oversight of foreclosure practices nationwide. "We must never forget that this economic crisis began one lousy mortgage at a time," Warren said.
Last week, Massachusetts Attorney General Martha Coakley called for the FHFA to change its position and expand loan modification programs, including principal write-downs, to stabilize the housing market and prevent unnecessary foreclosures. U.S. Reps. Barney Frank, Michael Capuano, and Stephen Lynch have all urged the FHFA to follow the Attorney General’s call for action.
"Foreclosures don’t just harm the families that lose their homes. They also have powerful effects on whole communities, depressing home values and putting a drag on local economies," said Warren.