WHAT WOULD YOUR STATE NEED TO STOP DROWNING?
NUMBER OF HOMES UNDERWATER
VALUE OF HOMES UNDERWATER
Relief for homeowners if there were widespread principal reduction:
How much is your state underwater? Hover your mouse over each state on the map to get the latest statistics.
HELP MAKE A DIFFERENCE
Remove the roadblock to economic relief
The housing crisis is strangling America's economic recovery. Leading economists agree that getting more homes back to fair market value is essential to getting all of us back on our feet.1
But one man is standing in the way: Ed DeMarco, acting director of the Federal Housing Finance Agency (FHFA). A holdover from the George W. Bush administration, DeMarco is in charge of Fannie Mae and Freddie Mac, which are behind more than half of all U.S. mortgages.
DeMarco is singlehandedly blocking an important step to recovery. He has repeatedly sided with big banks against homeowner relief.2 A Bloomberg editorial called DeMarco's position "wrong" and his arguments "incomprehensible."3
We need an FHFA Director who will support a better economy for all Americans—not just banks. Sign the petition and urge President Obama to fire DeMarco today.
A Real Solution for the Housing Crisis
Today 15.7 million Americans own homes that are "underwater," or worth less than their mortgages. Strangled by the same big banks who caused the housing crisis, many homeowners now find their banks unwilling to negotiate—even when they can pay.4
Few families will ever be able to pay off their inflated mortgages. Many will default. As long as this $700 billion in underwater mortgages remains on bank books, foreclosures will increase, the housing market will struggle, and our entire economy will stall.
But there's a solution: Through principal reduction—rewriting underwater mortgages to reflect their fair market value—experts agree we could jumpstart the housing market and the economy.
Mark Zandi, Chief Economist at Moody's Analytics, said that principal reduction has "the best odds of ending the housing crash quickly and definitively."5
Big banks must write down at least $300 billion in underwater homes. That's not enough to bail out vacation homes and investment properties. It's enough to put money back in the pockets of struggling middle and low-income families. And it's enough to right the market.
MEET THE MOST POWERFUL MAN IN HOUSING
Ed DeMarco, the director of the Federal Housing Finance Authority (FHFA) and in charge of Fannie Mae and Freddie Mac, is single-handedly standing in the way of principal reduction and keeping the housing market underwater.
The most powerful man in housing, DeMarco refused to allow Fannie and Freddie to participate in the recent $25 billion settlement with big banks.2 That settlement was just a drop in the bucket, but it was a step in the right direction—and if DeMarco hadn't blocked it, that small step would have been much more significant.
The FHFA is supposed to do everything in his power to help Americans avoid foreclosure. But DeMarco, a holdover from the Bush Administration, has refused. He's consistently sided with big banks against the rest of us.
Economists, lawmakers, and President Obama have called on Demarco to change his position and provide relief to homeowners.6 Numerous media and leaders have joined the call. Now, it’s up to Americans like you. Sign the petition today to oust DeMarco.
1.Editorial Board, Bloomberg, 2/29/12
2.Peter S. Goodman, "Ed DeMarco's Refusal on Principal Reduction Grounds for Firing," The Huffington Post, 3/12/12
3.Editorial Board, Bloomberg, 2/29/12
4.See families being shut out by banks here: http://america-underwater.tumblr.com/
5.Mark Zandi, "To Shore Up the Recovery, Help Housing," Moody's Analytics, 5/25/11
6.Mike Lillis, "Rep. Frank joins calls for top Fannie, Freddie regulator to be replaced," TheHill.com, 3/11/12