As Congress moves to stabilize the economy through a massive bailout of the financial industry, it must protect the interests of Main Street, not just Wall Street, by making sure that any final legislation addresses the root cause of the crisis – the rising tide of home foreclosures.

Congress can prevent foreclosures that are driving down property values and fueling the economic crisis by including provisions that allow families facing foreclosure to modify the terms of their loans so they can afford to remain in their homes. These provisions include (1) allowing the Treasury to buy whole loans or pools of loans so that it is possible to modify mortgages to keep people in their homes and (2) allowing bankruptcy judges to modify loans to reflect the reduced value of properties.  To address the root causes of this crisis, Congress should (3) provide additional resources and tools to communities struggling with large quantities of vacant and foreclosed homes and (4) crack down on predatory lending by limiting the interest lenders are allowed to charge people.

As people of faith we urge Congress, in crafting an effective and just response to this crisis, to hold firm to its role as a steward of public resources and protector of the common good. So far, millions of people have lost their homes as a part of this crisis. Congress must respond with the same sense of urgency to help the millions of homeowners who are just as crucial to the American financial system, and who are suffering from the flip side of this same crisis.

If Congress includes protections that stop the vicious cycle of foreclosures and falling property values, Americans can return to the hard business of rebuilding our communities and the economy.  

Birmingham Area Interfaith Sponsoring Committee, Birmingham, AL
Brockton Interfaith Community, Brockton, MA
Brooklyn Congregations United, Brooklyn, NY
Communities Creating Opportunity, Kansas City, MO
Congregations for Civic Action, North San Diego County, CA
Contra Costa Interfaith Supporting Community Organization, Contra Costa County, CA
Greater Long Beach Interfaith Community Organization, Long Beach, CA
Greater Pensacola Community Organizations, Inc., Pensacola, FL
Interfaith Action, Rochester, NY
Massachusetts Communities Action Network, Boston, MA
Metro Organizations for People, Denver, CO
Moving in Congregations Acting in Hope, Cortland, NY
Peninsula Interfaith Action, San Mateo County, CA
People Acting in Community Together, San Jose, CA
Queens Congregations United for Action, Queens, NY
Sacramento Area Congregations Together, Sacramento, CA
United Interfaith Action of Southeastern Massachusetts, Fall River & New Bedford, MA
Working Interfaith Network, Baton Rouge, LA

Members of PICO National Network

Media Coverage
No Bailout for Romilda - The Boston Globe, September 25, 2008
Congress must bail out struggling homeowners - San Jose Mercury News, September 28, 2008