MONDAY, OCTOBER 11, 2010
KLMNO
BY ARIANA EUNJUNG CHA AND DINA ELBOGHDADY
The Obama administration
does not support a nationwide moratorium on foreclosures at this time, Federal Housing Ad- ministration Commissioner Da- vid Stevens said Sunday in an e-mail response to questions. “We believe freezing foreclo-
sures for all banks in all states, whether we have reason to be- lieve themto be in error or not, is
simply not the prudent step to take in this fragile housing mar- ket,” he said. With approximately one in
four homes sold in the second quarter in foreclosure, adminis- tration officialsworry that amor- atorium could have a significant impact on the economic recovery. “While we understand the ea-
gerness to make sure that no American is foreclosed upon in error, we must be careful not to over-reach and apply a remedy that will make the underlying
problem of foreclosures worse,” he added. Stevens’s comments echoed
those made earlier in the day by White House senior adviser Da- vid Axelrod, who on CBS’s “Face theNation” outlinedthe adminis- tration’s current thinking about the issue as pressure from Con- gress, labor unions and consum- er groups mounts for the federal government to take action. Calling the growing evidence
that lenders have used inaccu- rately prepared and even fraudu-
hurry! Sale Ends today! Holiday Hours: Monday 10/11 9-9
lent documents to foreclose on homes a “serious problem,” he said it had already “thrown a lot of uncertainty into the housing market that is already fragile.” “I’m not sure about a national
moratorium, because there are, in fact, valid foreclosures that probably should go forward, and where the documentation and paperwork is proper,” Axelrod said. He said the administration is
“working closely” with mortgage companies so that they “expedite
EZ SU
Politics & The Nation Obama administration does not support U.S. moratorium on foreclosures
the process of going back and reconstructing these and throw- ing out those that don’t work.” The foreclosure mess has be-
come a hot-button political issue with midterm elections coming up. Many influential Democrats including House Speaker Nancy Pelosi (Calif.) and Senate Majori- ty Leader Harry M. Reid (Nev.) have called on the government to takemore aggressive action. On Sunday, Rep. Eric Cantor
(Va.) became one of the first Republicans to speak out. Ap-
pearing on“FoxNews Sunday,”he warned that freezing the foreclo- sure process would hurt an al- ready struggling housingmarket. “If you impose a moratorium
on foreclosures, what you’re tell- ing people and institutions that lend money is they do not have the protection to take the risk they need to,” Cantor said. Onthe same show,Rep.Debbie
Wasserman Schultz (D-Fla.) said she backs a foreclosure freeze.
chaa@washpost.com dina@washpost.com
A7
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