To: President Donald Trump, Fannie Mae, Freddie Mac, The US Treasury, The United States House of Representatives, and The United States Senate
Tell Fannie to Allow Write Downs
Banks are now allowed to write down mortgages for any loans backed by Fannie or Freddie but are being given government money to write down loans NOT backed by Fannie or Freddie. This is another break for the rich, because they are the ones with jumbo mortgages not backed by Fannie and Freddie. Please demand that Fannie and Freddie allow write downs of mortgages for underwater homes so that homeowners can sell, move, or start building equity in their homes. The underwater home situation was caused by the bubble. The people who bought homes at that time thought that someone at the top had a handle on things and they are now just stuck; stuck paying for a home that may never be worth what they owe in their lifetime. They can't move to seek a better job and they are broke from their pay being decreased but their mortgage staying at 2007 prices.
Why is this important?
Underwater homes were caused by the bubble that the banks created. People are stuck with homes that they cannot sell for what they owe. They can't move for a better job, they can't downsize to meet the current economy. Our government is now allowing for and reimbursing banks for writing down mortgages, all except those backed by Fannie Mae and Freddie Mac. People who have jumbo loans on second homes can get their mortgage written down to the current value (conditions apply), so the government is bailing out those homeowners and their banks (again), but middle class citizens who have their primary homes underwritten by Fannie or Freddie are out of luck. This is SO wrong. No help for the middle class repeated.