The Obama administration is taking a fresh look at the housing crisis.  This is welcome news to NCLR.  We have been working for some time with our partners to deliver calls and petitions that challenge the White House and the Department of the Treasury to extend its relief beyond just investors to include families and their neighborhoods.  Finally, it seems they may have gotten the message.  President Obama has conceded that the wait-and-see approach is not working, and he has introduced new policies to stabilize the market.

Not a moment too soon, the recent change in tide will bring relief to unemployed homeowners in particular.  The Treasury established a new policy allowing homeowners to put their mortgage payments on hold for up to 12 months while they secure new employment. This gets at the heart of temporary unemployment being a main cause for losing one’s home.  It also acknowledges the new post-crisis reality that Americans are out of work months longer than in times prior to the meltdown.

Monday’s announcement that the President intends to nominate former Ohio Attorney General Rich Cordray is yet another step in the right direction.  As Ohio’s AG, Cordray went to bat for families and took on deceptive mortgage servicing practices that were robbing families of their homes.  In the process, he recaptured $2 billion for retirees.

The renewed focus on the troubles plaguing the housing market signifies a win for families and validates advocates’ efforts.  While NCLR certainly applauds the administration for this new approach, decision-makers, bloggers, and the public must capitalize on the momentum to inject fresh ideas and ensure that the progress made thus far is not undone by opponents.  There is still work to be done.  Working families throughout the nation continue to face foreclosure each day.  Many are harassed by their banks that lose or even fabricate fraudulent documents.   It is irresponsible and troubling that in such a time the federal government has zeroed out funding for housing counseling—one of the only tools that has been known to decrease a borrower’s chances of defaulting on a loan.

NCLR will continue to closely examine how President Obama guides the recovery of the housing market.  In early 2011, we launched the Home for Good campaign that highlighted the great need for sweeping changes and issued a plea for decision-makers to use their leadership.  So far, more than 6,000 individuals have signed a petition to Treasury Secretary Geithner, urging him to stop wrongful foreclosures, protect affordable housing, and keep safe homeownership available.  This newly found spotlight on housing opens up a real opportunity to empower homeowners and clean up the housing industry for borrowers and honest businesses.