The swift action by the Obama Administration today to address the housing crisis is a welcome and refreshing change.

For more than a year, the Bush Administration ignored calls from the AFL-CIO and others to address a coming foreclosure tsunami.  Tragically, in the months that followed, the deepening housing debacle turned millions of families’ lives upside down and strengthened its chokehold on our economy. 

The Obama plan is designed to help up to nine million homeowners.  The strong plan from the Administration correctly includes changing the bankruptcy laws to allow judges to modify the mortgages of distressed homeowners, including reducing the principal of these loans to the property's current market value. 

The crisis could not be more dire.  An estimated eight million homes will fall into foreclosure over the next four years.  Bankruptcy reform is a critical piece of the solution for working men and women.  The AFL-CIO urges Congress to work with the Administration immediately to pass bankruptcy reform for homeowners.

Contact: Alison Omens 202-637-5018