O’Malley pleads for ‘urgent action’ to address foreclosure crisis in testimony before Congress

Gov. Martin O’Malley (D) pleaded for “urgent action” to address the national foreclosure crisis during testimony this morning before the House Financial Services Committee in Washington, D.C.

“In Maryland, we have an aggressive strategy to address the foreclosure crisis, but our ultimate success depends on a successful partnership with the federal government to help keep homeowners in their homes,” O’Malley said.

The governor spoke in support of the Federal Housing Administration (FHA) Housing Stabilization Retention Act of 2008, designed to help homeowners avoid foreclosure by enabling the FHA to insure and guarantee refinanced mortgages that have been significantly written down by mortgage holders and lenders.

O’Malley told the panel that “homeownership is the cornerstone of the American dream – a pathway into the middle class for so many who dream of building better lives for themselves, and for their families.”

The governor’s testimony came one-week after he signed emergency foreclosure prevention legislation.

O’Malley’s press office and state Democrats have heralded the agreement as one of the governor’s biggest accomplishments in his 15 months in office.

Today, his testimony focused on the need for the federal government to work with state governments from across the county to address the foreclosure crisis in a stern manner.

Committee Chairman Barney Frank (D-MA) invited O’Malley to speak.

The ex-mayor of Baltimore, O’Malley was joined by several former colleagues from the U.S. Conference of Mayors, including Tom Menino of Boston, Oscar Goodman of Las Vegas, and Adrian Fenty of Washington D.C.

“We must do all we can to strike the appropriate balance between lenders and borrowers so that people purchase homes within their means,” Lt. Gov. Anthony Brown said in a statement. 

“Education is key and I am proud of what our administration is doing to address the foreclosure crisis,” Brown added.