REP. MIKE THOMPSON WELCOMES PRESIDENT’S HOUSING PROPOSAL, BUT SAYS IT’S ONLY HALF OF THE EQUATION
Washington, DC – January 26, 2012 – (RealEstateRama) — Congressman Mike Thompson (CA-1), joined by Democratic Members of the California Congressional Delegation, today welcomed the President’s proposal from the State of the Union to provide responsible homeowners with the opportunity to refinance at historically low rates, but said this is only half of the equation.
“Last night in the State of the Union, the President proposed giving responsible homeowners the opportunity to refinance their mortgages at historically low rates – a proposal I have supported for a long time,” said Thompson. “This simple refinancing would on average put $3,000 back in the pockets of middle class Americans, which by some estimates could be a $50 billion a year economic stimulus, something that our economy could certainly use. However, this is only half of the equation. The Administration and FHFA needs to join our push for a significant principal reduction plan for underwater homeowners. The largest asset most middle class families have is their home, and our economy will continue to suffer and consumer confidence will never return if we do not help these hard working families navigate through this mortgage nightmare.”
At a press conference today, Thompson and the other members requested a meeting with the President to discuss policies that would reduce foreclosures and provide relief to homeowners. In California, more than 34 percent of homeowners with mortgages are considered “underwater” because they owe more on their homes than their homes are worth.
Congressman Mike Thompson is proud to represent California’s 1st Congressional District, which includes the Counties of Del Norte, Humboldt, Lake, Mendocino, Sonoma, Napa, and Yolo. He is a senior member of the House Ways and Means Committee and the House Permanent Select Committee on Intelligence. Rep. Thompson is also a member of the fiscally conservative Blue Dog Coalition and sits on the bipartisan, bicameral Congressional Wine Caucus.
