Building on Housing Resource Fair, Cicilline Urges Fairness For Underwater Mortgage Holders

WASHINGTON - Following his successful Housing Resource Fair, which connected Rhode Islanders with area banks, housing organizations, and non-profits, Congressman David Cicilline (D-RI) joined his colleagues in the Congressional Progressive Caucus (CPC) today in calling on Edward DeMarco, the Acting Director of the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, to write down principal amounts for struggling homeowners.

“Rhode Islanders who are facing the threat of foreclosure deserve to know that they will have the assistance they need to remain in their homes,” said Cicilline. “I am joining with colleagues today to urge Mr. DeMarco to ensure that Fannie Mae and Freddie Mac do the right for Rhode Island homeowners.”

Combined, Freddie Mac and Fannie Mae own or guarantee more than half of all mortgages in the country. DeMarco has faced criticism, with some observers calling for his resignation following his refusal to allow principal reductions for Freddie and Fannie mortgage holders.  

“At my Housing Resource Fair last Saturday, I heard from many Rhode Islanders who are frustrated that more than three years after the financial crisis on Wall Street, they are still underwater and many are still at risk for foreclosure,” Cicilline added. “Directing Fannie and Freddie to engage in write downs would help stop foreclosures and protect hardworking families from losing their homes.”

Cicilline, a member of the Congressional Task Force on Housing Stabilization, has made housing security a priority during his first term in Congress, as the rate of foreclosures has remained higher in Rhode Island than the rest of the nation.  Last Saturday, Cicilline held a Housing Resource Fair at East Providence High School for constituents who are interested in learning more about resources to avoid foreclosure.