August 24, 2007

Dodd Calls on Secretary Paulson, Secretary Jackson to Act Quickly to Modernize FHA

Sends Letter Urging Them to Help Save American Homeowners in Danger of Foreclosure

WASHINGTON, D.C. – Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today sent a letter to Treasury Secretary Henry Paulson and Department of Housing and Urban Development (HUD) Secretary Alphonso Jackson urging them to take the necessary administrative steps to enable the Federal Housing Administration (FHA) to provide more affordable loans to American homeowners in danger of foreclosure due to bad lending practices. Chairman Dodd has also made clear his intention to try to move legislation to modernize the FHA to ensure that more Americans can have the benefits of an FHA loan when Congress reconvenes in the fall.
    “Our nation is experiencing record foreclosures, and an unprecedented number of Americans could lose their homes due to the ‘bad lending practices’ cited by Secretary Paulson,” Dodd said in the letter. “At such a critical time, it is essential that the FHA act effectively and prudentially to preserve homeownership for as many Americans as possible. In addition to being an engine for creating new homeowners, the program could play a very important role in saving from foreclosure American homeowners who have been taken advantage of by unscrupulous subprime lenders and brokers”
This letter comes two days after Dodd convened a meeting with Fed Chairman Bernanke and Secretary Paulson to discuss solutions to the ongoing turmoil in financial markets.
The full text of the letter is available here.