FHFA, Remove the Roadblocks to Recovery for Millions of Struggling Americans

Today American Friends Service Committee joined the Home Defenders League and Occupy Our Homes Atlanta in an effort to deliver a letter and petitions to Georgia Congressmen John Lewis, David Scott, and Hank Johnson. Similar deliveries are happening in 15 states today concerning the very serious issue of our governments approach to housing; more specifically Fannie Mae and Freddy Macs unwillingness to work with struggling Americans.

Fannie Mae and Freddie Mac were created as government sponsored enterprises (GSEs) with the mission of expanding access to homeownership and affordable housing. After the housing bubble burst in 2008, Fannie and Freddie were bailed out with $180billion of tax-payer funds and placed under the conservatorship of the newly established Federal Housing Finance Agency. Fannie Mae and Freddie Mac, which together are now 79% tax payer owned, own or control over half of all mortgages- over 90% of new mortgages- in the United States.

In the time since the crisis began the FHFA, under the leadership of acting director Ed DeMarco, served as a roadblock in the path to recovery, instituting policies that harm families, hurt communities, and violate federal law. For example, Fannie Mae and Freddie Mac have refused to offer principal reduction for underwater homeowners, a move that according to the Congressional Budget Office (CBO) would save the federal government $2.8 billion, pump $101.7 billion back into the economy, and prevent tens of thousands of foreclosures.Additionally, Fannie Mae and Freddie Mac have refused to allow buybacks of homes post-foreclosure or accept rent from former homeowners, choosing to sell the homes to investors for pennies on the dollar instead. These are just a few examples of current polices in place at the FHFA that continue displace families and destroy communities across our city and as an organization dedicated
to housing justice in Atlanta, we see this impact firsthand every day.

Today, with the help of the American people, Fannie Mae and Freddie Mac have returned to profitability, earning the US Treasury billions of dollars. In January, after a two year campaign to remove acting FHFA director Ed Demarco, North Carolina Congressman Mel Watt- was confirmed as the new permanent director of the FHFA, signaling the possibility for changes at the agency. While some progress has been made, for many struggling homeowners, relief is not coming fast enough. The changes we are calling for immediately include:
• Accepting rent from tenants and former owners after foreclosure
• Providing loan modifications that include principal reduction to the current market value
• Selling homes back to occupants post-foreclosure at the current market value
• Donating vacant homes to community organizations to create affordable housing
• Putting more than $570million into the National Housing Trust Fund that has been withheld by Mr.
Watt’s predecessor, Ed DeMarco.
• Reject legislation or proposals that would mandate discrimination by federal agencies against mortgage
loans made in communities that may implement local principal reduction programs.

After delivery a letter and a petition to pressure Mel Watt, we also left petitions with each congressman that were for individual local housing justice campaigns that were in their perspective districts. I hope you will consider signing each of those petitions!
Nancy Daniells
Zannie Jackson
Nazim Abdul-Latif

Struggling Residents From Across the Southeast Storm Senator Isakson's Office to Demand No Filibuster of FHFA Director Confirmation Vote

Today struggling homeowners fighting mortgage giants Fannie Mae and Freddie Mac, along with housing justice activists from across the southeast, converged at the office of Senator Johnny Isakson in Atlanta to demand that he does not block a vote to confirm a permanent director for the Federal Housing Finance Agency (FHFA) which oversees Fannie Mae and Freddie Mac.

 This group includes Mark Harris, a Desert Storm veteran evicted at gunpoint by Fannie Mae last August from his home in Avondale Estates, Nancy Daniell, a senior citizen whose Duluth home was wrongfully foreclosed on by Nationstar on behalf of Freddie Mac, and Zannie Jackson, a Fannie Mae homeowner and dialysis patient worried about keeping a roof over his head in addition to fighting for his life. Monday's action is the culmination of Atlanta's Housing Justice Academy, a three day training in home defense and non-violent direct action, attended by homeowners, renters, and activists from around the Southeast organized by the American Friends Service Committee and Occupy Our Homes Atlanta.  

At around 1pm fourty home defenders, many of whom are at risk of losing their homes, entered Johnny Isakson's office building where we were immediately told that we would not be allowed into his office despite the fact that folks had driven hundreds of miles to meet with someone from the Senator's office. Finally we decided to go up to the senator's office anyway. Once outside his office we were refused admittance and told no one would meet with us today, which didn't stop us. We stood outside the office until someone met with us. A staff opened the door and offered to meet with us in the doorway without allowing us through the door. They basically wanted to take whatever information we had on paper and be done with us, instead we had a line of struggling residents ready to tell their stories and let Senator Isakson's staff understand what appointing a permanent FHFA director could mean for folks. After several residents shared their story's we then unrolled a large banner that said "#not1moreeviction".

The group spent another hour or so outside the senators office holding signs and granting press interviews.

A vote in the Senate to confirm a new director of the FHFA will happen early this week.  As this confirmation hearing approaches residents are advocating for a confirmation of a permanent Director of the FHFA. Since Senator Isakson and his fellow Republican congresspeople have threatened to filibuster Watt's confirmation, the residents staged a "filibuster" at Isakson’s office, by sharing the laundry list of violations and injustices of the FHFA. The confirmation of a permanent director FHFA  could mean principal reduction for hundreds of thousands of struggling American homeowners. It could also mean the turning over of Fannie Mae/Freddie Mac vacant properties over the community organizations for the use of affordable housing.

Similar protests will be taking place around the country on Monday as part of a national day of action to demand that there is "Not 1 More Eviction" until a new permanent director is confirmed by the Senate. These actions are part of the larger movement to "Dump Ed DeMarco," acting Director of FHFA, and reverse his policies that have been devastating to both homeowners and renters.  More than half of all mortgages in the US are managed by Fannie Mae and Freddie Mac. Even with all the current talk of housing recovery, 13 million homeowners are still underwater.FHFA’s continued  refusal to reduce principal to current value has hurt the economy, pushing millions of homeowners into the streets.  

Click here for Mark Harris' story and petition. 

Click here for Nancy Daniell's story and petition. 

Click here for Zannie Jackson's story and petition. 

Click here for Sherri Joubert's story and petition.

Click here for more information on the Housing Justice Academy. 

Desert Storm Veteran Takes His Fight To Fannie Mae Executive's Home

The Past Wednesday Desert Storm veteran Mark Harris held a Candle light vigil and prayer service at the home of Catherine "Candy" Lasher, the regional director of Fannie Mae. Candy can decide whether or not to throw Mark Harris out of his home.

 Around twenty people Joined Mark for the somber event. After canvassing Candy Lasher's neighborhood to make sure everyone knew why we were there and that there was no need for folks to be afraid, Pastor David Rice led the group in prayer not only for Mark Harris but the millions of people struggling with a housing issue.

We had a candlelighting ceremony in which everyone in attendance shared their hopes, dreams, and concerns.

For me personally the issue of national security was on my mind this evening. I belief in national security, I think It should be our top priority as a national community.


A nation that is truly secure would see all of it's residents with a place to call home, food to eat, and a decent paying job. The sad irony in that we have all the resources to make the dream a reality. Our economic crisis has never been about resources, there's is and always has been enough to go around. Our crisis is about economic priority.

If we continue to believe that developing enough weapons to bomb the world a dozen times over and recruiting young people to go bomb other poor countries somehow makes us more secure, then we will continue to live in economic insecurity while those that profit from our manufactured fears make record profits.


Mark Harris and millions of others are in crisis, and we need to start seeing corporate greed and a historic military budget for what they are; robberies from our communities and real threats to real human security.

One simply place to start prioritizing  national security is for President Obama to do what he has said he would do on the election trail and fire FHFA director Ed Demarco. Demarco could single handidly bring relief in the form of the greatest people's bailout in my generation with mortgage principle reduction. Demarco has widespread support for this measure but has refused to move forward claiming that it's would be morally wrong to relieve people like Mark Harris of their dept.

It's time to let go backwards thinkers like Ed Demarco and appoint someone who has the courage and compassion to take our communities out of the hostage situation they've been in for years.

Sign Mark's online petition

Come support Mark in Atlanta Friday 4/12



Tim Franzen
American Friends Service Committe

Fannie Mae Break Through

After a year solid direct action and public pressure campaigns from grassroots organizations all over the country, Fannie Mae agreed to meet with us this past week to, discuss policies that many believe are holding our communities hostage, to discuss 98 homeowner/tenant campaigns that need to be resolved asap, and to develop a direct line of communication moving forward.

I was invited to attend the meeting along with 12 other housing justice organizers. I was especially excited that Mark Harris, a homeowner with an active campaign against Fannie Mae, was able to travel with me from Atlanta to Washington DC to represent his case in person and to deliver his online petition.

We were set to meet with three high level Fannie Mae officials; The communication’s Director, the vice president of sales, the vice president of REO fulfillment.

 

One thing that was made clear at the beginning of the meeting was that any principle reduction was off the table. Fannie may was put under federal conservatorship after the government bailed Fannie Mae out. That means that Fannie Mae is now overseen and forced to comply with FHFA, which is run by Ed DeMarco. Ed DeMarco has said that he believes that principle reduction presents a moral hazard for America despite moderate voices like President Obama and Secretary of Treasury Timothy Geithner calling for some sort of mass principle reduction that would act as a people’s bailout.  

Our crew represented!  Melonie Griffiths facilitated fantastically, and each Fannie Fighter (Marcia Iza, Marilyn Elazegui, Rose McGee, Mark Harris, and Kenneth Brown--representing his mother) was powerful in sharing their story and demands.  Fannie Mae agreed to continue formal communications and to look at cases (including new ones) and certain policy areas with us.  They said a clear NO to principal reduction but did show a willingness to work with us on some areas including donation of properties for $1 or low cost and tenant issues.  They will be give us an update in writing by the end of next week on the post-foreclosure cases we submitted (pre-foreclosure they say will take more time to get us responses.) 

" I went to D.C. to get principle reduction. That did not happen, but i did learn more about the process. This action is like chopping down a tree. Each sing of the ax weakens the tree and at that very instant the tree falls under its own weight. I lean not to my own understanding!!!" stated Mark Harris after the meeting.

Many of the systemic changes we have been pushing for are above the heads of those we were meeting with, so the fight must continue. Ultimately the removal of Ed Demarco would be a major victory, and it’s been heard through the grapevine that Obama said he would do it after the election. It’s up to us to make sure he doesn't put that on the back burner.