Rep. Keith Ellison Introduces Preserving American Homeownership Act

WASHINGTON, D.C. – September 17, 2015 – (RealEstateRama) — Earlier today, Rep. Keith Ellison introduced the Preserving American Homeownership Act (HR 3519), which will allow Fannie Mae and Freddie Mac to use principal reduction to assist homeowners underwater on their home loan. Currently, Fannie Mae and Freddie Mac offer a number of methods to assist homeowners facing foreclosure – except principal reduction.

The Preserving American Homeownership Act creates a pilot program that would gradually reduce the principal balance of home loans in exchange for a share of the increase in a home’s value when the home is later sold or refinanced.

“Eight years after the housing crisis began, we have yet to properly help millions of American families who were affected,” said Rep. Ellison. “We should be using every resource at our disposal to help these Americans, including principal reduction, which economists and lawmakers on both sides of the aisle support. My bill takes the first step by creating a pilot program to use principal reduction as a means of assistance.”