Cartwright Introduces Legislation to Enact Foreclosure Moratorium Due to Recent Congressional Inaction

Washington – Today, U.S. Rep. Matt Cartwright introduced the Stop Foreclosures due to Congressional Dysfunction Act with the support of 55 colleagues. 

The legislation would impose a 6-month moratorium on foreclosures for individuals who have lost their emergency unemployment compensation (EUC) due to recent congressional inaction.

The legislation would require that the Federal Housing Finance Agency direct the Government Sponsored Enterprises (GSEs) – Fannie Mae and Freddie Mac – to establish a 6-month moratorium on foreclosures of GSE-guaranteed mortgages for borrowers provided that the borrowers were in good standing before losing their unemployment insurance.

“I urge my colleagues to support this vital legislation.  Since December 28, due to the inaction of Congress, more than 2 million Americans have been cut off from emergency unemployment insurance,” said Cartwright.  “In my district, people have been particularly impacted by the expiration of these benefits.  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.  This legislation would support struggling Americans who have demonstrated their willingness to repay their mortgage loans.”

This week, Cartwright joined his colleagues in signing a discharge petition, led by Rep. Brad Schneider (D-Ill.), to bring up the Emergency Unemployment Compensation Extension Act (H.R. 3546), championed by Rep. Sander Levin (D-MI).  The bill would extend emergency unemployment insurance for nearly 5 million Americans looking for work through the end of the year.

Cartwright and Rep. Steven Horsford (D-NV) have also drafted a letter to FHFA Director Mel Watt urging him to adopt the aforementioned policy in the event of congressional inaction on Cartwright’s legislation.  The letter will be delivered once Congress reconvenes.