Foreclosure concerns draw the ire of House members unhappy with lack of progress

The House Committee on Financial Services Subcommittee on Housing and Community Opportunity held a hearing concerning foreclosure prevention and sound mortgage servicing.

The committee interrogated a panel of governmental housing program leaders including Laura Maggiano, Deputy Director of the Office of Single Family Asset Management at the Department of Housing and Urban Development (HUD). Maggiano defended HUD’s assistance to families unable to finance their homes amid strong criticism from each congressional representative at the hearing, particularly Chairwoman Maxine Waters (D-CA).

Rep. Emmanuel Cleaver (D-MO) told the panel that with our country experiencing “approximately 20,000 foreclosures a week” that we have“more than a casual problem”.

Maggiano’s defense emphasized that her department was trying hard to both help keep borrowers informed about the housing contracts they were agreeing to pay, and ensuring loaners that could receive the money they distribute.

Also, Judy Caden, answering questions on behalf of the US Department of Veterans Affairs (VA), argued in her defense that not all foreclosures were the result of bad loans being distributed.

Conference Call compares House and Senate housing relief tax packages

The Center on Budget and Policy Priorities held a conference call today to compare the House and Senate housing relief tax packages. Call participants voiced their concerns about the lack of success both chambers of Congress have had to date in helping families decimated by the crisis concerning housing foreclosures and subprime mortgage rates.

Call participants discussed how the packages Congress has implemented to address the growing rate of housing foreclosures facing Americans “don’t meet the needs” of families seeking government aid. The discussion also focused on the importance of providing struggling families with tax credit, something the Senate bill does not address. Policy analyst Aviva Aron-Dine discussed how there are too many provisions that the relief package bills include (particularly the Senate version) that do not have anything to do with the housing crisis. Call participants explained that tax cuts the bills include for the wealthy are of no assistance to the poor who do not benefit from them.

Aron-Dine described the Senate bill as “extremely disappointing” and noted that while the House version is better, it still does not go far enough toward helping families in dire need of governmental aid. Aron-Dine explained that 60% of the Senate bill has nothing to do with helping solve the foreclosure problem. Call hosts also interestingly noted that forclosures destroy community life as well as family life, and that people renting homes have been affected by the crisis as well.

McCain campaign addresses housing crisis response

Senator John McCain’s (R-AZ) presidential campaign held a conference call today to discuss his recent comments regarding economic policy. Carly Fiorina, RNC Victory 2008 Chair, outlined McCain’s proposals to help homeowners. Specific plans included the Homeowner Program, where “worthy” homeowners could apply for governmental assistance to restructure debt. Fiorina said McCain also called for a Department of Justice task force to investigate lenders and speculators who may have contributed to the housing crisis. McCain also called for the government to stop filling the strategic petroleum reserve in order to alleviate gas and food prices, and he called for a comprehensive reform of the unemployment insurance program.

Some callers expressed opinions that McCain took a more aggressive stance towards the mortgage refinancing than he has in the past, but Fiorina responded that his new policies are consistent with his values and he is most committed to securing a bipartisan solution to the problem. Fiorina also said that McCain’s policy goes further than the Federal Housing Administration’s, with a 10 percent negative equity opportunity as opposed to the FHA’s 3 percent. Fiorina reinforced that McCain’s plan is focused on helping responsible homeowners.