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

Mel Watt Welcoming Party!

After over a year of pressure from grassroots organizations like Occupy Our Homes Atlanta, former head of the Federal Housing Finance Agency (FHFA) Ed DeMarco has been fired. There’s a new boss overseeing mortgage giants Fannie Mae and Freddie Mac, and his name is Mel Watt.

Today American Friends Service Committee joined members of Occupy Our Homes Atlanta, including struggling homeowners Zannie Jackson and Nancy Daniell who are facing foreclosure at the hands of Fannie and Freddie respectively, in  throwing a welcoming party for Director Watt at the Atlanta regional office of Fannie Mae. Like any good party there was cake, balloons, and even a great big greeting card for Mel Watt.  

Residents and community members spoke about Mel Watt’s potential to help communities around the country, and what we believe should be his main priorities at the FHFA.

 

We know that Mel Watt has the potential to be a great community partner and work to keep people in their homes. However, we want him to know that we plan on holding him accountable every step of the way. While Mel Watt has already taken steps to distance himself from DeMarco, we want to make sure he starts working on the things communities need right away.

Mel Watt has the power to relief struggling homeowners of dept that insures loans will remain underwater for years if not forever. We hope that Watt will also turn over vacant properties to community groups to be used for affordable/transitional housing units. As city's like Atlanta continue to see the number of homeless increase, it's painful to see empty homes in struggling communities.

 

After we gathered in front of Fannie Mae's regional head quarters, signed our cards, and each shared our hope and dreams for Mel Watt, we decided it was time to deliver our giant greeting card, the cake, and the balloons! Zannie and Nancy also delivery copies of their online petitions to save their homes. Well, it turns out the surprise was on us! Fannie Mae decided to tell the private security force not to allow us in the building, and not to accept our greeting card.

 

Never ones to leave the job undone,  we simply went around the side of the building and delivered our package at the building loading dock, where it was gladly accepted!

Please sign Zannie Jackson and Nancy Daniell's online petition's by clicking on their names.

Fannie Mae Wastes Taxpayer Money Prosecuting Nonviolent Home Defense of Veteran Mark Harris

Yesterday former congressman Mel Watt took office as the head of the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac. Today, Fannie Mae is taking four people to court with charges of criminal trespassing for working peacefully and nonviolently  to keep Desert Storm veteran Mark Harris in his Avondale Estates home of 16 years.

Under the direction of Ed DeMarco, the former interim director of the FHFA, Fannie Mae refused principle reduction to current market value for many struggling homeowners like Mark, resulting in an unprecedented rate of foreclosures across the nation. Instead of helping struggling homeowners, Fannie Mae chose to waste public tax dollars on expensive eviction procedures. In August, Fannie Mae had Mark Harris evicted at gunpoint at spent tens of thousands on 24/7 private security. This money could have gone to helping Mark work out a deal he could afford. Fannie Mae is now set to spend even more taxpayer money to prosecute four people that, along with over ten thousand people who have signed petitions supporting Mark Harris, didn't want to see another veteran on the streets.

In court today, the four arrestees plead not guilty to charges of criminal trespassing levied against them by Fannie Mae, forcing Fannie Mae to justify their actions in a court of law.

Fannie Mae, under the direction of Mel Watt's FHFA, has a choice to make. We ask that Mel Watt direct Fannie Mae to drop the charges against our peaceful and nonviolent arrestess who fought to keep a veteran housed and save American taxpayers and homeowners billions by correcting mortgages to current market value.

We are grateful for the legal assistance from the Davis/Boazman law firm who continues to tirelessly step up for the Atlanta community good over and over again.

Sign Mark Harris' online petion