On Wednesday October 29th at 11:00 a.m., hundreds of homeowners will demonstrate and take other actions at the headquarters of Fannie Mae, 3900 Wisconsin Avenue in Washington, DC. NACA, which provides the best solution for struggling 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 government 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 only 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 into 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. “Fannie Mae is the most resistant to affordable solutions. In effect, Fannie Mae, 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