Washington, DC - Congressman John D. Dingell (D-MI15) voted in favor of legislation today that brings fairness and hope to families who are facing foreclosure.  A record 5.4 million homeowners were either behind on payments or in foreclosure at the end of last year, according to an industry survey, making it vitally important that the nation’s housing crisis be addressed. H.R. 1106, the “Helping Families Save Their Homes Act,” will put in place a key first piece of President Obama’s comprehensive Homeowner Affordability and Stability Plan.  The President announced details of his plan yesterday, which can be seen at www.financialstability.gov.

“As President Obama mentioned during his address to the Congress last week, the federal government can and must pursue measures to mitigate the effects of this terrible economic blight upon the Nation’s citizens.  With the painful memories of the Great Depression still clearly in mind, I offer my wholehearted praise and support for the President’s call to action.  Additionally, as the representative of a congressional district with one of the Nation’s highest foreclosure rates and most dramatic decline in housing values, I feel it imperative that we move swiftly to stabilize the housing market to keep people in their homes.”

The Helping Families Save Their Homes Act gives bankruptcy judges the ability to modify existing mortgages for families, who file for Chapter 13 bankruptcy, as an incentive to spur lenders into voluntarily modifying loans.  It gives lenders the confidence to modify loans by protecting them from certain types of lawsuits.  Moreover, it spurs mortgage refinancing by fixing the Federal Housing Administration’s Hope for Homeowners Program, reducing fees, and offering new incentives for lenders.

H.R. 1106 is critical to the overall recovery of our economy.  Home prices dropped 18 percent in the last quarter of 2008.  More than 14 million homeowners owe more on their mortgage than their home is worth, and they cannot refinance.  Many are facing foreclosure through no fault of their own. This is an important step in helping America recover.

“We are in the midst of the gravest recession in recent memory and hear daily of countless foreclosures across the Nation, particularly in my home state of Michigan.  I am proud to support this legislation that offers a fair approach to our housing crisis and will help keep millions of struggling Americans in their homes.”