Tong Calls Mortgage Settlement Good Start, Seeks More Investigation, Help for Homeowners
February 21, 2012
U.S. Senate Candidate William Tong Calls Mortgage Settlement Good Start, Seeks More Investigation, Help for Homeowners
Democratic U.S. Senate candidate State Rep. William Tong today called the recent $25 billion mortgage settlement a good start, but urged more investigations, including criminal, and more help for underwater homeowners.
Tong, co-chairman of the General Assembly’s Banks Committee, made his remarks after a committee meeting today on the settlement.
“Homeownership is a pillar of the America Dream,” Tong said. “I know because buying a home was a pivotal moment in my family’s rise in America. We didn’t have much growing up, but we had a home. We must tackle this housing crisis in order to save the middle class, the backbone of this country.”
Tong thanked Attorney General George Jepsen and his staff for their hard work on this settlement, which will provide $190 million in relief to Connecticut homeowners and the state. But said that this was just a start and urged more investigations, including criminal, and litigation, if justified.
“This is a good start, but more needs to be done,” Tong said. “I urge state and federal authorities as well as consumers, pension funds and others to keep investigating. Additional investigation, leading to possible litigation and criminal charges, can secure more money and better loan terms for homeowners hurt by financial industry abuses.
“Too often, financial institutions view such settlements as the cost of doing business and break promises to halt illegal activity. Only the threat of additional legal action up to criminal prosecution and prison will stop the greed that sank our economy and impoverished millions.”
As U.S. Senator, Tong said he would do more to assist homeowners and revive the housing market. Homeownership with job creation, education and small business promotion are the four pillars of his plan to restore the American Dream.
“As U.S. Senator, I will fight for underwater homeowners and hold banks and financial institutions responsible for their abuses,” Tong said. “Our economy will not fully recover until the housing market recovers. My plan will help stabilize the housing crisis and help reclaim the American Dream here in Connecticut and around the country.”
Tong’s housing proposals include:
- Set federally backed mortgages at 4 percent, allowing underwater homeowners to refinance at lower interest rates. The program would put more than $2,800 a year into the pockets of Connecticut families and $1 billion into the state’s economy;
- Expand principal relief programs such as those in California and Nevada, enabling homeowners who are underwater but making payments to reduce their debt burden over time;
- Provide homeowners who lose their jobs with short-term bridge loans so they can keep their houses while they search for work.
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