September 06, 2007

Statement of Chairman Dodd on Foreclosures in Second Quarter

“Today, data released by the Mortgage Bankers Association shows that foreclosures have, for the second quarter in a row, hit historic highs. Unfortunately, today’s information, as heartbreaking as it is for the nearly 290,000 additional American families that face the loss of their homes, is just the leading edge of a tidal wave of foreclosures that is expected to sweep through the communities and neighborhoods of our country in the coming 18 months, when more than 2 million families with subprime loans face the prospect of seeing their home payments jump to unaffordable levels. “These grim statistics underscore two facts: first, the abject failure of this Administration to protect homeowners from unscrupulous and predatory lending practices; and second, the need for tough, comprehensive action to protect homeowners. That is why I will introduce legislation to stop predatory lending. It’s also why I have consistently demanded that the Federal Reserve and its sister agencies become better cops on the beat – to protect homeowners from abusive practices. And it is why I believe it’s so important to modernize the FHA – so homeowners facing foreclosure can find safe, affordable home loans.”