Senator Has Long Called For The Obama Administration To Establish A Principal Reduction Program To Help Struggling Borrowers Stay In Their Homes
WASHINGTON, D.C. – (RealEstateRama) — U.S. Senator Dick Durbin (D-IL) today said that an announcement by the Federal Housing Finance Agency (FHFA) could benefit up to 33,000 families that have been struggling to avoid foreclosure and stay in their homes in states – including Illinois – that have been hardest hit by the financial crisis. The new program will offer a one-time principal reduction to borrowers whose loans are owned or guaranteed by Fannie Mae or Freddie Mac and who meet specific eligibility criteria. Additional information on today’s announcement can be found HERE.
“The nationwide recession ended long ago, but its effects are still being felt by families across the country and in my state of Illinois. Millions of people are still faced with everyday economic challenges that jeopardize their ability to continue owning a home,” said Durbin. “Foreclosing on these families and damaging communities is not an acceptable outcome. I am glad for the leadership today from Director Watt in taking these steps to stabilize our real estate market, protect families and communities and ultimately save taxpayers money.”
For years, Durbin has urged the FHFA to establish a principal reduction program to help homeowners and save taxpayers billions. His letter to FHFA Director Melvin Watt in 2014 can be found HERE and his letters to FHFA Acting Director Edward DeMarco in 2011 and 2012 can be found HERE and HERE.