Senator Dodd (D-CT) Leads Foreclosure Prevention Hearing

Senator Dodd (D-CT) chaired a committee hearing today entitled “Strengthening our Economy: Foreclosure Prevention and Neighborhood Preservation.”  The Committee investigated losses in the mortgage market bourne by both lenders and investors. 

The committee concluded that due to “bad lending practices” that “no sensible banker should have engaged in,” our housing market and economy in general has taken a turn for the worse.  Senator Dodd cautioned that without immediate action our economy would head toward recession.  President Bush alluded to this in his State of the Union Address Monday evening.

Robert Steel, Undersecretary for Domestic Finance, assured the Committee that the Bush Administration’s goal is to prevent foreclosures for homeowners, particularly those “at risk homeowners who can be helped.”  Emphasizing the progress achieved by Bush’s HOPE NOW program, Steel reminded the Committee of the progress already achieved regarding mitigating, “the impact of rising foreclosures on homeowners and the economy.”  With an economy in limbo, there is optimism that HOPE NOW and other government sponsored programs can aid struggling families sooner rather than later.