Failing to Renew Unemployment Insurance, After Failing to Renew Unemployment Insurance, Congress Is a Culprit in Foreclosure Crisis, In the immediate aftermath of the nation’s 2008 foreclosure crisis, Congress played a constructive role in keeping Americans in their homes. Lawmakers supported loan modification programs and sweeping financial reforms, and — while many rightfully demanded more action — these efforts eased the effects of the crisis.
Today, the lingering effects of predatory lending and the Great Recession mean that foreclosures remain a serious problem in communities around the country. But, in the national fight to stop foreclosures, one crucial fact has changed: Congress is now a culprit.
By failing to extend emergency unemployment insurance benefits, House GOP leaders have unnecessarily thrust millions of Americans into financial hardship and many, in turn, into foreclosure.
Congress must again be part of the solution. Lawmakers should immediately extend emergency UI benefits. But, if House GOP leaders continue their obstruction, the absolute least lawmakers can do is pass a measure to direct the Federal Housing Finance Agency to impose a six month moratorium on foreclosures for individuals who have lost UI due to congressional inaction.
Because of the GOP’s termination of the federal emergency UI program, more than 2.2 million Americans, including more than 200,000 veterans, have lost access to an essential lifeline that’s rightfully theirs. Unemployment insurance is not a hand-out. Americans who lost their jobs in one of the toughest job markets in memory have largely paid into the emergency compensation program through payroll taxes.