Brown Statement On Mortgage Crisis
U.S. Senator Sherrod Brown (D-OH), a member of the Senate Banking, Housing, and Urban Affairs Committee, released the following statement in response to this morning's speeches by President George W. Bush and Federal Reserve Chairman Ben Bernanke, addressing the mortgage situation:
"Today brought good news and bad news for homeowners struggling to hang onto their homes in the midst of the mortgage crisis.
"The good news is that President Bush has finally decided this issue is important. His support of Senator Stabenow's bill to ease the tax consequences for mortgage write downs, legislation that Senator Voinovich and I have cosponsored, is welcome. And his support for reform of the Federal Housing Administration is also helpful.
"But we are long past the need for more studies. We need tougher regulation of the industry, and more funds for counseling homeowners. And we needed it yesterday. Last year Ohio had 79,000 foreclosure filings. Just in the first half of this year, we've already had 60,000 foreclosure filings.
"That regulation must be issued by the Federal Reserve. So I was disappointed that Chairman Bernanke's remarks this morning -- while making clear that the Federal Reserve has no responsibility to protect lenders and investors from losses - made no mention of the Federal Reserve's responsibility to protect borrowers from deceptive lending practices."