On March 14, Representative Matt Cartwright (D-PA) introduced a bill to protect individuals and families whose unemployment insurance (UI) benefits have expired from foreclosure on their homes. The bill was referred to the Committee on Financial Services.
Approximately 1.4 million people who were receiving long term UI had their benefits terminated on December 28 when Congress failed to grant them an extension. Despite ongoing negotiations, no consensus has emerged on how to pay for the extension on which Republicans have conditioned their support.
In a press release, Mr. Cartwright stated, “these Americans worked hard, played by the rules, and lost their jobs through no fault of their own. They should not lose their homes as well due to congressional dysfunction.”
The bill, H.R. 4255, would require that the Federal Housing Finance Agency (FHFA) direct Fannie Mae and Freddie Mac to establish a six-month moratorium on foreclosures of guaranteed mortgages for borrowers who had been in good standing on their mortgages before losing their unemployment insurance. NLIHC has endorsed the bill.
Mr. Cartwright and several of his colleagues also will encourage FHFA Director Mel Watt to establish the moratorium administratively.
Read Mr. Cartwright’s press release at: http://1.usa.gov/1dl1LSC