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Housing Problem Far From Over

Housing Problem Far From Over

Americans Continue to Struggle With Lenders & Homeownership

(Washington, D.C.) – Today the President left Washington for another "campaign-style" speaking engagement as part of his summer tour on the economy. The President spoke in Arizona about improvements in the housing market in that state. The speech was billed by the White House as an effort to spell out a plan for helping homeowners and replacing the Federal National Mortgage Agency (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC). These are generally referred to as Fannie Mae and Freddie Mac. Arizona, Florida, Nevada, and California were hardest hit by the housing bubble and foreclosures of 2008. And even though Arizona has seen home sale prices on the rise, the housing problem is far from over as many families continue to struggle to get lenders who are now requiring perfect credit and big downpayments to provide loans.  

Daniel Garza, Executive Director of The LIBRE Initiative released the following statement:

"Even as the President hopes that buying a home will have a ripple effect on the economy, the reality is that Americans all over the country are struggling to keep a roof over their heads. Those who can't afford to stay must sell their homes for way below market value with 'short sales' to avoid foreclosure, and some neighborhoods are seeing a rise in rentals.

You cannot turn around the housing market without a strong and sustainable jobs market. Leadership must  hammer out a plan to stop bailouts, protect taxpayers from billions in losses, and help hard-working Americans get access to affordable housing. That's the best way to lay a solid foundation for real growth and real job creation."

Former Treasury Secretary Timothy Geithner delivered a policy speech two-and-a-half years ago, calling for a major reduction in the role of the federal government in the housing market. Geithner said, "we need to wind down Fannie and Freddy and substantially reduce the government's footprint in the housing market." In the 30 months since then, the White House appears to have made little progress toward spelling out and enacting a specific plan.

For interviews with a LIBRE representative, please contact: Judy Pino, 202-578-6424 or Brian Faughnan, 571-257-3309.