Congressman Cardoza Stresses Link Between Stagnant Job Market and Housing

09/06/11


WASHINGTON, DC – As today’s national monthly job numbers showed that unemployment remains stubbornly high, Congressman Dennis Cardoza (CA-18) urged the President to recognize the strong link between the ongoing housing crisis and the stagnant job market. The Department of Labor announced today that the economy added no net new jobs in August and the unemployment rate remained at 9.1 percent. The strain on America’s workers is only exacerbated by the collapse of the housing market, Cardoza said. Millions of homeowners across the nation are “underwater,” owing more on their mortgage than their house is worth. In Cardoza’s Central Valley, where, nearly 60% of all mortgages are underwater, the unemployment rate remains between 16-18% -- twice the national average. Cardoza has argued that the distressed economy, caused by the collapse of the housing market, can only begin to recover if the foreclosure crisis devastating middle-income families is first addressed. “Families are trapped by their mortgages,” said Congressman Cardoza. “They can’t pursue new job opportunities because they can’t afford to sell their homes at a huge loss and relocate. As long as the housing market remains in a downward spiral, unemployment will stay stubbornly high. “I urge the President and Congress to get our economy back on the right track by recognizing this link and adopting an aggressive, far-reaching housing assistance program like my Housing Opportunity and Mortgage Equity (HOME) Act.” The HOME Act (H.R. 363) would help up to 30 million struggling homeowners with mortgages backed by Fannie Mae or Freddie Mac to benefit from current historically low market interest rates by allowing them to refinance for up to 40 years at a fixed single-digit rate. This would significantly lower the homeowner’s monthly mortgage payments, resulting in fewer foreclosures, while stabilizing the housing market and the national economy. “This is a national crisis. We need bold solutions to get the economy on the right track,” added Congressman Cardoza. “As we celebrate Labor Day, we should also keep in mind the millions of unemployed workers across the country who cannot find work to support their families, and are struggling to hold on to their homes.” # # #
WASHINGTON, DC – As today’s national monthly job numbers showed that unemployment remains stubbornly high, Congressman Dennis Cardoza (CA-18) urged the President to recognize the strong link between the ongoing housing crisis and the stagnant job market. The Department of Labor announced today that the economy added no net new jobs in August and the unemployment rate remained at 9.1 percent. The strain on America’s workers is only exacerbated by the collapse of the housing market, Cardoza said.

Millions of homeowners across the nation are “underwater,” owing more on their mortgage than their house is worth. In Cardoza’s Central Valley, where, nearly 60% of all mortgages are underwater, the unemployment rate remains between 16-18% – twice the national average. Cardoza has argued that the distressed economy, caused by the collapse of the housing market, can only begin to recover if the foreclosure crisis devastating middle-income families is first addressed.

“Families are trapped by their mortgages,” said Congressman Cardoza. “They can’t pursue new job opportunities because they can’t afford to sell their homes at a huge loss and relocate. As long as the housing market remains in a downward spiral, unemployment will stay stubbornly high.

“I urge the President and Congress to get our economy back on the right track by recognizing this link and adopting an aggressive, far-reaching housing assistance program like my Housing Opportunity and Mortgage Equity (HOME) Act.”

The HOME Act (H.R. 363) would help up to 30 million struggling homeowners with mortgages backed by Fannie Mae or Freddie Mac to benefit from current historically low market interest rates by allowing them to refinance for up to 40 years at a fixed single-digit rate. This would significantly lower the homeowner’s monthly mortgage payments, resulting in fewer foreclosures, while stabilizing the housing market and the national economy.

“This is a national crisis. We need bold solutions to get the economy on the right track,” added Congressman Cardoza. “As we celebrate Labor Day, we should also keep in mind the millions of unemployed workers across the country who cannot find work to support their families, and are struggling to hold on to their homes.”
http://cardoza.house.gov/index.cfm?sectionid=87§iontree=6%2C87&itemid=800