For Immediate Release
April 15, 2016
Community Organizing Groups Applaud FHFA Principal Reduction Policy
Yesterday, the Fair Housing Finance Agency announced a principal reduction modification program that will help up to 33,000 borrowers. In response, Alliance for a Just Society and National People’s Action released the following statement:
“The Alliance for a Just Society and National People’s Action applaud the Fair Housing Finance Agency (FHFA) for beginning to provide relief to thousands of families trapped in underwater mortgages.
These homeowners were left owing more than their houses were worth when the housing market crashed almost ten years ago due to the reckless behavior of the country’s big banks.
Since the crash, the Alliance for a Just Society, National People’s Action, their affiliates and allies have mobilized families around the country to call on the FHFA to provide justice for homeowners left in the lurch.
Because of these efforts, FHFA is now making principal reduction available to approximately 33,000 homeowners, helping them get back on their feet and assisting communities struggling to recover from the ongoing devastation of the financial crisis.
While many more families need relief, and while the help will come too late for too many, the action represents a significant step forward in families’ fight for real solutions. We will continue to urge the FHFA Secretary Mel Watt and the Obama Administration to build on this progress.”
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National People’s Action is a network of 29 grassroots organizations in 18 states working together to advance a racial and economic justice agenda for a new economy and true democracy.
Alliance for a Just Society is a national policy, research and organizing network that focuses on social, economic and racial justice.