Washington - Today, government-controlled mortgage giants Fannie Mae and Freddie Mac announced a plan to freeze some foreclosures between November 26 of this year and January 9, 2009. It is estimated that the plan would only prevent up to 16,000 foreclosures. In October there were 279,561 foreclosure filings - if this keeps pace there will be more than a half million foreclosure filings by the end of the Bush administration.
U.S. Senator Robert Menendez (D-NJ), a member of the Senate Banking Committee who has consistently pushed the Bush administration to take more assertive action to stem foreclosures, said the plan would not save nearly enough families from losing their homes. He released the following statement:
"Once again, the Bush administration is like a fire department showing up late with only a garden hose. Preventing up to 16,000 foreclosures is better than nothing, but at least half a million families will join those already facing foreclosure if stronger action isn't taken between now and the Obama administration. Last week, the Bush administration announced a plan to modify mortgages for only a small segment of struggling homeowners, and now we see a freeze on an extremely limited number of foreclosures. Clearly, if they don't understand by now that stabilizing the housing market helps stabilize the entire economy, they never will. It is time for this administration to listen to these struggling homeowners and take Shelia Bair's plan seriously."
# # #
