Published: February 10, 2012
New Housing Settlement to Provide Relief to Struggling Homeowners
Praises relief from foreclosures, but emphasizes more work ahead
Noting that our economy cannot fully recover without a strong housing market, Congressman Jim Langevin (D-RI) applauded the settlement agreed to today by Rhode Island Attorney General Peter Kilmartin and his counterparts across the country to provide relief to struggling homeowners.
According to Kilmartin's office, Rhode Island, which has been particularly hard hit by the housing crisis and the dramatic reduction of home values, will receive $172 million in the $25 billion deal with five big mortgage lenders. Moving forward from the settlement, Langevin is urging his fellow policymakers to recognize that while this is one step in the right direction, it should be viewed as an opportunity to take further action.
More information on the settlement is available at http://www.nationalmortgagesettlement.com/
"I am pleased that Attorney General Kilmartin and his counterparts throughout the nation have reached a settlement that will begin to restore some of the damage these banks caused through reckless foreclosure practices, and will serve as an essential step toward turning around the housing market," said Langevin. "While this will not solve all of our housing challenges nor fully penalize the banks, it allows for more damages to be collected in the future and recognizes that we must act immediately to stem the tide of foreclosures, which is dragging down home values and our overall economy, by helping underwater homeowners.
"In addition, the uncertainty of what requirements would emerge from these negotiations has been an obstacle to implementing other programs established by Congress and the Administration. Banks now know their obligations as related to this case. Moving forward, we need to take further steps to ensure affordable housing for struggling families, knowing that the rate and extent of our economic recovery depends in large part on the strength of our housing market."
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