(Washington, DC) On Wednesday October 29th at 11:00 a.m, hundreds of homeowners will demonstrate and take other actions at Fannie Mae’s Headquarters, 3900 Wisconsin Avenue. NACA, which provides the best solution for homeowners, is taking this action given Fannie Mae’s dominant position and refusal to provide long-term solutions for at-risk homeowners.
Fannie Mae sets the standard for the industry’s foreclosure procedures. Fannie Mae owns or guarantees 30% of the home loans in America and determines the “Accepted Servicing Practices” for the industry. After the trillion dollar bailouts failed to address the financial collapse and massive foreclosures, there is now a focus on providing real solutions for at-risk homeowners.
Fannie Mae is the major roadblock. For the vast majority of at-risk homeowners, they refuse to permanently restructure mortgages based on what the homeowner can afford due to the following (more detail provided on enclosed letter to James Lockhart Chair of OFHEO which oversees Fannie Mae):
- Requiring the homeowner to be four months late
- Refusal to permanently reduce the interest rate to less than current market rate.
- Refusal to reduce the outstanding principal amount.
- Providing short-term solutions
- Encouraging predatory practices such as Interest only solutions
Fannie Mae which is now owned by the American taxpayer is best positioned to provide real solutions for millions of homeowners at risk of foreclosure without taxpayer funds. “While Congress and the Administration pour massive amounts of taxpayer dollars for ineffective solutions and bailouts of Wall Street and lenders, they refuse to implement the most effective solution to the foreclosure crisis, states Bruce Marks – NACA CEO. “FannieMae is the most resistant to affordable solutions. In effect, FannieMae, owned by the American taxpayer, is unnecessarily foreclosing on the American taxpayer”.
NACA and Shelia Bair, Chairperson of the FDIC, have shown the way by restructuring unaffordable mortgages. The restructure solution permanently reduces the interest rate and/or outstanding principal based on the homeowner’s budget. NACA has done this primarily through legally binding agreements with the top three lenders/servicers and the FDIC through their ownership of IndyMac.
NACA will personalize the issue through this direct action with hundreds of homeowners.
WHAT: Call to Action against Fannie Mae
WHEN: Wednesday, October 29, from 11:00 a.m. –
WHERE: Fannie Mae Headquarters, 3900 Wisconsin Avenue, NW Washington, DC
WHY: Fannie Mae refuses to restructure mortgages to make them affordable
It’s Fannie Mae that’s become the stumbling block to getting their mortgage, and thousands of others restructured to an affordable payment. That’s why the Neighborhood Assistance Corporation of America (NACA) will mobilize hundreds of homeowners at-risk of foreclosure to show Fannie Mae what it feels like to get foreclosed upon.
“We will create a foreclosure city right in front of Fannie Mae headquarters in Washington, DC,” said NACA CEO Bruce Marks. “We will drop furniture and luggage in front of Fannie Mae to symbolize the devastating impact the mortgage company is having on hard working Americans.”
NACA has been in the forefront of restructuring unaffordable mortgages. In our historic Save the Dream Event in Washington from July 19th – 23rd at the Capital Hilton Hotel we had over 20,000 people attend and restructured thousands of loans. The restructure of these unaffordable mortgages is based on a homeowner’s documented budget with the interest rate permanently reduced to an affordable payment. NACA now has legally binding agreements with the country’s three largest mortgage servicers to restructure mortgages and is successful with many others. If homeowners are denied a modification, the servicing company is required to let us know who the investor is.
While we continue to get affordable solutions for many homeowners investor Fannie Mae has become the obstacle because it refuses to support long-term affordable solutions. Fannie Mae sets the industry standard. So, all investors and banks follow its lead.
Taxpayers bailed out the predatory mortgage guarantor and investor and now Fannie Mae thanks them by forcing homeowners out of their homes. Similar actions, at Fannie Mae offices in Chicago, Charlotte, and Atlanta will also take place on Wednesday, October 29th.
With no taxpayer dollars Sectretary Paulson could require Fannie Mae to set the standard by implementing the following for owner-occupants:
- Moratorium on foreclosures
- Stop interest rate increases.
- Permanently Restructure Mortgages to an affordable payment.