New Report: Iowa Underwater
How President Obama can fix the Housing Crisis and Create Jobs
A new report released today by Iowa CCI and the New Bottom Line coalition delivers a win/win way for President Obama administration to fix the housing crisis and create jobs.
For Iowa, this solution would pump $140 million into our Iowa economy and create 2,000 Iowa jobs.
From the report:
More than 43,000 Iowans have lost their jobs since the start of 2008, and 37,612 are expected to lose their homes by the end of 2012.... But the Obama Administration and the banks can do something right now to change all that. Requiring banks to write down all underwater mortgages to market value could:
Pump $139,123,396 into Iowa's economy every year;
Create more than 2,056 jobs in Iowa;
Save Iowa families an average of $373 per month on mortgage payments;
Decisively fix the foreclosure crisis.
...underwater mortgage debt is one of the primary drags on economic recovery.
The report, calls on the President to:
Allow the state Attorneys General to conduct a full investigation into the fraudulent and illegal activities of the Wall Street banks that caused the foreclosure;
Ensure that the big banks are not let off the hook for their crimes. There cannot be a broad release of claims in any current or future settlement talks with the big banks;
Require a minimum of $200 - $300 billion from the big banks in principal reduction for underwater homeowners.
“In Des Moines alone, 24 percent all mortgages are underwater,” said CCI member Mike McCarthy of Des Moines, “if President Obama required the banks to fix what they broke and write down the principal on all underwater mortgages to current market value, he could inject a direct cash stimulus into State’s economy of $139,123,396 – at no cost to the taxpayers.“
“The banks can afford to write down principal for underwater homeowners and pay restitution to defrauded homeowners,” McCarthy said, “U.S. banks raked in $35 billion in profits this summer alone and are sitting on a historically high level of cash reserves of $1.64 trillion.”