Cardoza: Programs aren't helping valley

WASHINGTON — Government programs and studies intended to solve the foreclosure crisis may look good on paper or from "10,000 feet above reality in Washington," but they are doing absolutely nothing to help those in the Central Valley. That was the message Rep. Dennis Cardoza said he delivered to top officials from the Obama administration Wednesday.

The Northern San Joaquin Valley has been one of the hardest-hit areas of the country during the real estate implosion. Home prices have plummeted while foreclosures have skyrocketed in the past three years.

"I hope that today we can begin a discussion about what steps the administration can take to improve these programs — and what role Congress can play to help facilitate the necessary changes, because we know from our constituents that this crisis is far from over," Cardoza said in a news release.

Cardoza, D-Merced, made the remarks during the second meeting of the newly established Congressional Task Force on Housing Stabilization. He is a co-chairman of the task force along with Rep. Shelley Berkley, D-Nev.

The task force aims to undertake a comprehensive review of housing stabilization efforts, looking at the aspects of programs that have been successful along with those that are in need of changes and improvements, according to the news release.

Wednesday's meeting included top officials from the Treasury, Federal Reserve, Housing and Urban Development Department and Federal Deposit Insurance Corp.

Cardoza took particular issue with the president's Home Affordable Modification Program, the news release said.

The program seeks to assist homeowners in avoiding foreclosure by modifying their loans. The Government Accountability Office, the investigative arm of Congress, recently found that only 31 percent of homes that were eligible for the program had been helped.

The GAO also found several concerns with the program, such as inconsistent treatment of borrowers, too few guidelines and limited tracking of complaints.

This story was originally published July 28, 2010 at 10:33 PM with the headline "Cardoza: Programs aren't helping valley."