In a letter sent this week, more than 24 members of the House
of Representatives said that the regulators of two giant mortgage firms,
Freddie Mac and Fannie Mae, are planning to help struggling homeowners
by refinancing cheap rated mortgages to avoid foreclosure. According to
them, this will also help to improve the situation of the country by
avoiding foreclosure.

The letter has been sent to the present director of the Federal
Housing Finance Agency, Edward DeMarco by lawmakers who are mainly
Democrats. In that letter, they have requested him to meet regulators
who have described their meeting with the FHFA representatives of the
lower level as disappointing.

In the letter, lawmakers said, “We expressed our profound frustration
with the apparent lack of urgency shown by your agency and by agencies
within the Administration in addressing the foreclosure crisis.”
Maryland’s Representative Elijah E. Cummings, who is the main Democrat
of the House Oversight Committee, and a California Republican and the
leader of the panel, Darrell Issa are co signers of this letter.

In a press release about the economy of the state, the U.S.
President, Barack Obama said something important in his speech which
will help some of the homeowners who are struggling with their
foreclosed properties for long time.

He wants to give more privileges to the homeowners by giving them the
advantage of present low-interest rates, and if the homeowners opt for
this facility, the housing market will surely head towards a boom and
this will also boost up the consumer spending.

Officials of the White House and FHFA members have been in meetings
about the matter to fix up the problems that the nation has been facing
for a decade. They are trying to help those borrowers who are in
years-old programs and owe a mortgage value which is much higher than
their owned properties.

DeMarco suggested than FHFA must think of a plan before its execution
so that the expansion of the program does not bring more losses for
Freddie Mac and Fannie Mae in the near future.

“We made very clear that we want action now, and that the President’s
address was a call to action — to Members of Congress, the
Administration, the banking community, and independent agencies like
yours. It quickly became obvious, however, that a meeting directly with
you is necessary,” mentions the letter written by the lawmakers.