The Federal Housing Administration (FHA), part of the Department of Housing and Urban Development insures millions of mortgages.
In the wake of the housing crisis, FHA created a program called the Distressed Asset Stabilization Program, which is supposed to sell off seriously delinquent FHA insured loans in ways that “stabilize” neighborhoods. Instead, they are selling them off to the highest bidder. And that means Wall Street bankers and private equity firms.
There is an alternative: Non-profit “Community Development Financial Institutions” that have a track record of successfully helping struggling homeowners and developing affordable housing are ready and willing to buy the same assets HUD is selling to Wall Street.
It is appalling to see the one department in our Federal government charged with stabilizing communities and creating affordable housing helping make this happen. This has to stop. Now.
After you sign the petition learn more by reading “The Rise of the Corporate Landlord” a report by The Right to the City Alliance.
To Julian Castro, Secretary of the Department of Housing and Urban Development:
I strongly support HUD’s mission “to create strong, sustainable, inclusive communities and quality affordable homes for all.”
For that reason I am writing to ask that you suspend all sales of mortgages in the Distressed Asset Stabilization Program (DASP) until you can ensure that the program prioritizes what’s good for homeowners and their communities.
1. Increase Access for Non-Profits in the Bidding Process: Credit bidders that have stronger plans to preserve homeownership and create affordable rental housing
2. Strengthen Outcome Requirements to Preserve Homeownership and Create Affordable Rental Housing.
3. Collect and Make Public Detailed Performance Data.
4. Improve the Pre-Sale Process to Better Protect Homeowners.
In its current form, the DASP is unnecessarily undermining the very mission of HUD by selling loans to some of the same reckless actors who cause the financial crisis. With the above improvements, HUD can make the program into one that will strengthen our communities.