Councilwoman: Sell delinquent mortgages to nonprofits, not Wall Street
Last night, Councilwoman Helen Gym added her voice to the list of people across the U.S. calling on Freddie Mac and Fannie Mae to change how they are selling delinquent mortgages.
Gym said she would introduce a resolution to City Council asking that Freddie and Fannie stop all sales in Philadelphia until they meet with council and start selling first to nonprofits.
The resolution mirrors calls across the nation by local lawmakers and community groups for the federal mortgage loaners to prioritize the selling of delinquent mortgages and properties to housing agencies and other nonprofits. Leaders are concerned the agencies are instead going straight to Wall Street investors to sell off the homes.
“Federal housing agencies undermine our local recovery work when they sell troubled mortgages to Wall Street hedge funds and private equity firms,” said Gym in a statement. “We need a better partnership that makes sure communities are protected.”
Rallies and press conferences are planned to be held in various cities in the country today on this issue. These leaders say that over 90 percent of the mortgages that have been auctioned by Fannie and Freddie along with the U.S. Housing and Urban Development authority, are going to hedge funds and and private equity firms.
“I want Fannie Mae to talk with our city and our nonprofit partners before selling off one more troubled mortgage to Wall Street,” said Gym.