Conyers asks Watt for 6-month ban on foreclosures

JConyers-web
John Conyers

May 16, 2014 – Rep. John Conyers, D-Mich., this week asked Federal Housing Finance Agency Director Mel Watt to consider having Fannie Mae and Freddie Mac set a six-month moratorium on foreclosures for some homeowners.

Noting the Chapter 9 bankruptcy proceeding in Detroit, Conyers said the moratorium should apply to Fannie- and Freddie-guaranteed mortgages for homeowners who were current on payments before the beginning of the city’s Chapter 9 proceedings last year.

He also urged FHFA to do all it can to ensure local borrowers access to any mortgage loan modifications needed to prevent future foreclosures and evictions that would worsen Detroit’s difficulties.

Conyers, who has pursued legislation in the past to allow mortgage cramdowns in bankruptcy, sent his letter in follow-up to Watt’s speech Tuesday at the Brookings Institution. In that speech, Watt said FHFA will not be reducing loan limits for enterprise-backed loans or tightening debt-to-income requirements, as NAFCU has urged.

NAFCU, during debate on mortgage cramdowns, opposed the concept, noting credit unions have a record of working closely with their members facing financial difficulties.

 

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