Cartwright & Horsford Draft Letter to FHFA Director Mel Watt Urging Foreclosure Moratorium

WASHINGTON, D.C. – March 31, 2014 – (RealEstateRama) — Today, U.S. Congressmen Matt Cartwright (D-PA-17) and Steven Horsford (D-NV-4) sent a letter cosigned by 75 Democratic House colleagues to Federal Housing Finance Agency (FHFA) Director Mel Watt urging him to impose a moratorium on foreclosures for individuals who have lost their emergency unemployment compensation (EUC) due to congressional inaction.

The letter requests that FHFA Director Watt direct the Government Sponsored Enterprises (GSEs) – Fannie Mae and Freddie Mac – to implement a six-month forbearance on loan payments of GSE-guaranteed mortgages for borrowers who have lost their unemployment insurance. Borrowers must have been in good standing prior to losing their unemployment insurance.

“Foreclosures are an impediment to our economic recovery. Therefore, we urge Director Watt to utilize his authority and stop foreclosures now,” said Cartwright. “Since December 28, due to congressional inaction, more than 2 million Americans have lost unemployment insurance. These hardworking, responsible Americans lost their jobs, and now their last lifeline–unemployment insurance–through no fault of their own. They should not lose their homes as well.”

This month, Cartwright introduced the Stop Foreclosures due to Congressional Dysfunction Act, which would enact the aforementioned policy as law.