FOR IMMEDIATE RELEASE
Contact: Tim Lilienthal, PICO, 413-537-0631

Faith network praises Obama Administration's comprehensive strategy to prevent foreclosures

PICO National Network issued the following statement today:

Mesa, AZ - Today, President Obama took an important step in addressing the root causes of the economic crisis by announcing a comprehensive strategy to stabilize communities by helping 7 to 9 million U.S. families restructure their mortgages to avoid foreclosure.

The Administration's plan offers hope to cities and towns across the country that have been hard-hit by the foreclosure crisis, and a lifeline to hundreds of thousands of homeowners who are desperately trying to work with their banks to modify their loans and who, in the words of President Obama, "find themselves navigating a maze of rules and regulations but rarely finding answers."

"My daughter received a so-called modification from her bank and is still paying 62% of her income on her mortgage," said Gloria Cooper, from San Diego, CA who attended the announcement in Mesa, AZ along with six other clergy and community leaders from the PICO National Network.  "Getting her payment down to a third of her income will really help. There is a ray of hope on the horizon."

As a network of faith-based organizations working to prevent foreclosures and help rebuild neighborhoods, PICO believe that, if implemented quickly and effectively, the strategy announced today will give relief to homeowners and communities, including:

• The creation of standard guidelines for loan modification that all banks receiving taxpayer bailout money are required to implement;
• $75 billion to help millions of responsible homeowners avoid foreclosure by lowering their monthly payments to an affordable 31% of income;
• And incentives for servicers to modify loans, not only for families on the brink of foreclosure but also for struggling borrowers before they fall behind on their payments.

The plan also calls on Congress to enact legislation that would empower homeowners whose banks will not work with them to modify their mortgages through bankruptcy court.

"I feel like I can return home to San Diego with something tangible - that I can go home to my community, my friends, and my church and share some good news," said Danryea Hassan-Hall, a PICO leader from San Diego, who also attended the announcement. "I can bring back hope to those who may have lost hope, who thought nothing could be done."

This week PICO clergy and families facing foreclosure are traveling to Washington, DC to meet with Treasury officials and Congressional staff to press for swift action on the foreclosure crisis. 

March 6-9, 2009, PICO will hold a cross-country "Recovery Express" Bus Caravan to highlight successful efforts by cities to prevent foreclosures and stabilize neighborhoods, and to press Members of Congress from both parties to support bold action to keep families in their homes, including fixing the bankruptcy code and changing tax laws to clarify the legal ability of mortgage trust holders to modify mortgages.

During 2008-09, the PICO network has helped lead a national faith-based campaign to stop preventable foreclosures through direct assistance to families at-risk of losing their homes; by developing model city, county and state foreclosure prevention strategies; and by advocating for federal policies to stop more than 3 million preventable foreclosures. 

On February 5, 2009, PICO issued a joint report with the Center for Responsible Lending calling on the Treasury and Congress to create a large-scale, streamlined program to modify home mortgages:  Common Sense Solutions for Saving Homes and Communities.

For more information on PICO's National Campaign to Stop Preventable Foreclosures, visit www.piconetwork.org