House members want answer on ways to help housing recover

Two House Democrats demanded answers on Thursday from an independent federal regulator on ways to help struggling homeowners who are underwater on their mortgages. 

Rep. Elijah Cummings (Md.), ranking member on the House Oversight and Government Reform Committee, and Rep. Dennis Cardoza (Calif.), co-chairman of the Housing Stabilization Task Force, sent a letter on behalf of more than two dozen House lawmakers to the Federal Housing Finance Agency (FHFA) following what they called a "disappointing" and "frustrating" meeting with agency officials. 

"Along with other Members who attended today’s meeting, we expressed our profound frustration with the apparent lack of urgency shown by your agency and by agencies within the Administration in addressing the foreclosure crisis," they wrote in the letter. 

The letter specifically requests a meeting with FHFA Acting Director Edward DeMarco to discuss ways to implement President Obama’s proposal to help homeowners avoid foreclosure.

Cummings and Cardoza said during a press conference Thursday afternoon following the meeting that FHFA officials hadn't provided them with any answers on how to jump-start the depressed housing sector. 

"In response to our questions, they [FHFA staff] also explained that since they are not political appointees, they were not in a position to make high-level decisions about these issues. They emphasized, however, that you are personally committed to addressing these issues," the letter said. 

A week ago, DeMarco said the independent federal agency "is carefully reviewing the mechanics of the Home Affordable Refinance Program (HARP), created in 2009, to determine whether there are 'frictions' that can be eased that will help borrowers while reducing risks for Freddie Mac and Fannie Mae, the government-sponsored enterprises (GSE) which FHFA oversees. The program only covers loans guaranteed by Fannie and Freddie.  

"We look forward to hearing about your availability to meet with us to discuss how to overcome the 'impediments' you have identified in order to implement a large-scale, comprehensive refinancing program that helps the greatest number of American families in need," the wrote. 

Sens. Barbara Boxer (D-Calif.) and Johnny Isakson (R-Ga.) have teamed up on legislation that would allow homeowners who are on time with their mortgage payments but underwater on their mortgages to refinance into lower rates, in an effort to help them avoid losing their homes.