SUPPORTING Rebuilding American Homeownership

            WHEREAS, housing remains the biggest impediment to economic recovery; and

            WHEREAS, over four million homes have been foreclosed upon since the housing crisis began in 2007, with a forecast of four to eight million more foreclosures over the next five years; and

            WHEREAS, a substantial share of these foreclosures will come from the many millions of families trapped in higher-interest loans because their homes are “underwater,” which means the families owe more than their homes are worth; and

            WHEREAS, the loss of family wealth through foreclosures and devalued homes is estimated at seven trillion dollars, or roughly $100,000 for every homeowner in America. According to a Federal Reserve survey, 71% of the decrease in family assets between 2007 and 2010 was due to the decline in the value of housing; and

            WHEREAS, mortgage-related foreclosures have resulted in an unprecedented number of not-for-sale, long-term, inadequately maintained vacant properties that contribute to an increase in crime, decrease neighboring property values, and stall recovery of the retail housing market; and

            WHEREAS, according to a 2010 survey conducted by The U.S. Conference of Mayors, there are an average of 2,247 abandoned residential properties resulting from the mortgage foreclosure crisis per city, with some larger cities reporting over 10,000 such properties in their jurisdiction; and

            WHEREAS, families would benefit from loans that rebuild their equity more quickly or that reduce substantially their monthly payments; and

            WHEREAS, he reduced rate of foreclosures that would result would strengthen communities and help to stabilize or grow housing prices, improving the home construction economy and other sectors tied to the housing market; and

            WHEREAS, the greater spending power of these families would help improve the overall economy,

            NOW, THEREFORE, BE IT RESOLVED, Congress should pass and the President should sign legislation to provide additional mechanisms for mortgage refinancing for homeowners who are current on their mortgage payments and meet basic underwriting standards, but find themselves still “underwater;” and

            BE IT FURTHER RESOLVED, Congress should pass the Rebuilding Equity Act to offer families whose loans are guaranteed by Fannie Mae or Freddie Mac an opportunity to more quickly restore equity in their home.