March 06, 2008

DODD: FORECLOSURE DATA DEEPLY DISTURBING

WASHINGTON, DC – Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing and Urban Affairs, today released the following statement on data released by the Mortgage Bankers Association on mortgage delinquencies reported in the fourth quarter of 2007: “The data released this morning on the number of delinquent mortgage loans and foreclosures is deeply disturbing, and underscores the need for aggressive, innovative solutions to the unprecedented challenges we are facing in the housing market. Particularly troubling, although not surprising, is that many of these loans originated in the subprime market, where predatory lending practices victimized homeowners. In fact, data released by the Fed today showed that for the first time on record, homeowners in the aggregate own less than half of the value of their homes. As our economy continues to slow, it is not going to get any easier for homeowners to make their mortgage payments while keeping pace with the rising costs of fuel, food, and other necessities. Put simply, these people need help now – not just “Hope Now.” Unfortunately, the Administration, whose lax oversight led to this crisis, has put only a flimsy plan in place that fails to offer enough of either. I am committed to doing everything in my power as Chairman to help these individuals, and to ensure we have the safeguards in place to prevent this situation from occurring again.”