2.9.2012 Costa Statement on $18 Billion Mortgage Servicer Settlement for California Homeowners

Washington, D.C. – Rep. Jim Costa released the following statement following the announcement that California homeowners would receive $18 billion as a part of the multistate settlement to penalize mortgage servicing misconduct and robo-signing.

“This settlement is a big win for hundreds of thousands of struggling homeowners across the state and especially in the San Joaquin Valley,” said Costa.  “I applaud Attorney General Harris for her tireless work on behalf of California homeowners. However, this is no silver bullet, and there is far more that must be done to connect the dots and stabilize our housing market starting with passing the HOME Act. While our communities are being torn apart by foreclosures, some in Congress refuse to pass legislation that would put thousands of dollars in the pockets of millions of homeowners by allowing them to refinance at historically low rates.”

Further details about the settlement from Attorney General Kamala Harris’ office can be found here.

Costa is an original co-sponsor of H.R. 363, the Housing Opportunity and Mortgage Equity (HOME) Act of 2011, which will allow any borrowers with a Fannie- or Freddie-Backed mortgage to refinance their mortgages at historically low rates. The legislation would allow homeowners to lower their monthly payments and help Americans stay in their homes. This common-sense legislation would be little-to-no cost to taxpayers since fees for refinancing will be added to the mortgage.