PRESS STATEMENT

NCLR Applauds Creation of New FHFA Program to Help Families Reduce Their Mortgage Principal

April 15, 2016

Contact:
Julian Teixeira
jteixeira@nclr.org
(202) 776-1812

WASHINGTON, D.C.—NCLR (National Council of La Raza) today applauded the Federal Housing Finance Agency’s (FHFA) announcement of its new Principal Reduction Modification program, which will allow mortgage write-down—a reduction in estimated value—on loans owned by Fannie Mae and Freddie Mac, which hold most of the nation’s home loans.

“While many areas of the country are experiencing a housing market rebound, there are millions of Hispanic families who still have the burden of mortgage balances higher than the value of their homes,” said Janet Murguía, NCLR President and CEO. “For years we have urged FHFA to extend foreclosure relief to Latino families using principal reduction, which evidence shows is one of the most effective tools for keeping people in their homes, and we have presented countless stories on how such an action would stabilize both households and communities.

“We applaud FHFA Director Mel Watt for this important step to help families who are still recovering from the housing crisis. This long-overdue action will put millions of households on the road to economic recovery and we look forward to working with the administration to implement even more solutions to help struggling homeowners,” concluded Murguía.

NCLR—the largest national Hispanic civil rights and advocacy organization in the United States—works to improve opportunities for Hispanic Americans. For more information on NCLR, please visit www.nclr.org or follow along on Facebook and Twitter.