CALIFORNIA–(ENEWSPF)–November 4, 2011. Homeowners and faith leaders from PICO California and The New Bottom Line join with Attorney General Kamala Harris in making a strong call on both the nation’s largest banks and Fannie Mae & Freddie Mac to do mass principal reduction to keep families in their homes and help heal the economy.
“It has become clear to me that the only way to keep distressed California homeownersin their homes is through meaningful principal reduction,” Attorney General Harris said in a statement on Thursday. AG Harris suggested that the current regulator of Fannie and Freddie, Edward DeMarco, should step aside if he continues to oppose helping homeowners through principal reduction.
“Attorney General Harris needs to be a champion for homeowners across California and the nation,” said Rev. Lucy Kolin of PICO. “The big banks want to reach a settlement with the state Attorneys General that lets them off the hook for their illegal actions but helps just a tiny fraction of the 2 million California homeowners who are underwater on their mortgages as a result of big bank fraud. It’s time to hold these banks truly accountable, including Fannie Mae and Freddie Mac who continue to keep more than one million California families trapped in unsustainable debt.”
AG Harris recently pulled out of the 50-state settlement negotiations because the proposed deal failed to provide enough relief to California homeowners. PICO California and The New Bottom Line call on her to continue to take a strong stand to hold big banks accountable and win a settlement that will address the full scope of the problem.