News from
The Michigan Democratic Party
 
FOR IMMEDIATE RELEASE
February 19, 2010
Contact: John Tramontana
517-371-5410
 
Brewer Lauds President Obama’s Announcement of Housing Market Assistance
Program Will Help Michigan Homeowners
 
LANSING – Today in Nevada, President Obama announced a new program that will help homeowners in struggling housing markets where home prices have fallen more than 20% from their highest point.  Funds to help struggling homeowners will be administered through housing finance agencies and will be used with local challenges in mind.  In response to this announcement, Michigan Democratic Party Chair Mark Brewer issued the following statement:
 
“President Obama’s announcement is welcome news for homeowners in Michigan who are still struggling to make ends meet. It is also further evidence that the President and Democrats like Governor Jennifer Granholm and Congressmen Mark Schauer and Gary Peters are serious about helping the middle class and will not rest until the American Dream is restored.  This program is an important step toward stabilizing Michigan’s housing markets and helping middle class families stay afloat in these difficult times. I want to thank President Obama for his continued attention to the challenges facing Michigan families.  And I call on Republicans like Senator Mike Bishop and Congressman Pete Hoekstra to stop playing politics and blocking progress at every turn, and instead start working with Democrats to get our economy back on track.”
 
The program will help in the following areas:
 
1) Unemployed borrowers
2) “Underwater” borrowers—those who owe more on their home than their home is worth.
3) Borrowers with second liens—borrowers who have a home equity line of credit on their home and problems associated with that.
 
This new program will help housing finance agencies to take new steps in struggling housing markets to help homeowners stay afloat.  Under this new initiative, $1.5 billion of funds made available under the Emergency Economic Stabilization Act of 2008 (EESA) will be used to improve and expand the work of state and local Housing Finance Agencies (HFA)s.  The new initiative will apply to states where housing prices have dropped by 20% or more.  This program will be administered with the utmost regard for transparency and accountability and in accordance with existing EESA funding requirements.