Congressman Dennis Cardoza
18th Congressional District of California

MERCED, CA – At the request of Congressman Cardoza , U.S. Housing and Urban Development Secretary Shaun Donovan toured the City of Merced Thursday. During his time here, he informed the San Joaquin Valley that there will be increased eligibility for mortgage refinancing under the Obama Administration’s Home Affordable Refinance Program. The Secretary also praised Congressman Cardoza’s advocacy on the foreclosure crisis and the creative solutions the Congressman has proposed.

“We would not have made this change without the advocacy of Representative Cardoza,” Secretary Donovan said of the expanded eligibility for refinance assistance.

Borrowers whose mortgages are currently owned or guaranteed by Fannie Mae and Freddie Mac, and are up to 125 percent underwater, will now be allowed to refinance those loans under the President’s Making Home Affordable plan. The plan previously allowed borrowers who were up to 105 percent underwater to refinance.

“This announcement is another significant step forward,” said Congressman Cardoza. Merced and the San Joaquin Valley have been among the hardest hit regions by the recession.

Merced, Modesto and Stockton, have had the highest foreclosure rates in the nation. Congressman Cardoza has introduced legislation to lower mortgages and last month received a Congressional Hearing on his proposed legislation that would establish parts of the Valley as Economic Disaster Areas, making them eligible for additional federal aid. Thursday’s tour included walks and drives in neighborhoods throughout both north and south Merced, as well as views of several closed businesses. The Secretary also visited UC Merced while in the community.

“I am grateful for Secretary Donovan’s time and visit to our community,” said Congressman Cardoza. “I also am optimistic that our pleas are being heard. My hope is that Secretary Donovan and I will return to work on this issue in Washington with a renewed sense of urgency.”