Cummings Pushes for Loans To Protect Americans In Danger of Foreclosure

December 9, 2009
Press Release

December 9, 2009


Cummings Pushes for Loans To Protect Americans In Danger of Foreclosure


Cummings Pushes for Loans To Protect Americans In Danger of Foreclosure
Bridge loans would enable thousands of American families to stay in their homes.

(Washington, DC) – Efforts by Congressman Elijah E. Cummings, (MD-07) to provide hope for American families threatened with foreclosure have proven fruitful.

Legislation in the manager’s amendment to H.R. 4173, the Wall Street Reform and Consumer Protection Act of 2009, would amend that bill to provide $3 billion from TARP to be used to create “bridge loans” for Americans who have lost their jobs and are in danger of foreclosure. H.R. 4173 is scheduled for a final vote this week.

The proposed loans would be temporary, low-interest loans, facilitated through The Department of Housing and Urban Development for foreclosure assistance for the unemployed. The legislation is partially as a result of a letter Congressman Cummings sent to HUD Secretary Shaun Donovan in November.

Cummings’ letter said in part, “…We must find a way to assist those who have fallen victim to circumstances beyond their control. There are untapped viable policy options, and I wholeheartedly encourage you to not close the door on any mechanism that may allow an economic recovery for all Americans.”

Congressman Cummings is pleased Maryland residents and Americans throughout the nation, could finally have a way of emerging from the danger of losing their American dream.

“Nothing matters more than the fact that we are giving families hope that they won’t lose their homes,” said Cummings. “There is nothing more devastating, financially, than having a home and the stability it brings, then having that stability ripped away. Our national economy is showing signs of recovering, but for millions of people, who lost their jobs through no fault of their own, and then lost their homes, recovery will be excruciatingly slow. These loans would help minimize future foreclosures and protect American homeowners.”

A recent study by the Federal Reserve Bank of Boston found a 1 percent increase in the unemployment rate increases the probability of a 90-day mortgage payment delinquency by 10-20 percent.