Mayor Raul Martinez Calls on Lincoln Diaz-Balart (ONCE AGAIN)

Soon the House will vote on the most comprehensive response yet to the American mortgage crisis. The package of housing measures will help families facing foreclosure keep their homes, help other families avoid foreclosures in the future, and help the recovery of communities harmed by empty homes caught in the foreclosure process. As most Americans’ primary investment is their home, ending the foreclosure crisis is vital to the American economy recovery.

The legislation, authored by Committee Chairman Barney Frank, will expand the FHA program to help refinance at-risk borrowers into viable mortgages. The bill also requires the Federal Reserve Board to conduct a study on the need for an auction or bulk refinancing mechanism. The legislation now moves to the full House for consideration.

“I haven’t studied this sufficiently”

Unfortunately this is what Lincoln Diaz Balart told the New York Times last month when asked about possible solutions. He once again failed to show any leadership on this issue.

However, now that Mayor Martinez has repeatedly brought this to his attention and asked him to “study” the two and a half year old crisis we hope he can follow other Republicans and the Democratic leadership.

Other Florida Republicans have studied the crisis and concluded:

Florida Republican Ginny Brown-White, recently said: “when you look at the number of foreclosures in Florida alone and in other states, the role of government certainly isn't to bail them out, but to give them a helping hand.”

Other Republican Congressman:

Republican Steven C. LaTourette of Ohio warned his congressional colleagues by stating that: Lawmakers who fail to work together on a solution to this housing crisis will do so “at their peril.” We sincerely hope that Lincoln Diaz–Balart will heed Congressman LaTourette’s advice.

The Expanded FHA Refinance Program, which is encapsulated in this new housing legislation, is a voluntary program would permit FHA to provide up to $300 billion in new guarantees to help refinance at risk borrowers into viable mortgages. This $300 billion is the total amount of outstanding loans that may be insured under the program. The government would only have liability if a borrower defaults and the amount recovered in foreclosure is below the outstanding principal.

Congressman Barney Frank recently stated that his legislation aims to “reduce the number of foreclosures both as a matter of alleviating the pain for some individuals and stabilizing some neighborhoods…this legislation will restore some stability to the housing market, put liquidity back in the market, and not interfere with the market, but help restore it,” Mayor Martinez’s perspective is that “homeowners need help now, last year almost 19 homes per hour went into foreclosure – the country can not afford anymore partisan stonewalling when it comes to solving the housing and mortgage crisis.”