Senators Chris Dodd (D-CT) and Richard Shelby (R-AL), Chairman and Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, today formally announced an agreement with the House of Representatives and the Administration on comprehensive legislation to address the current housing crisis and strengthen our economy.  Dodd and Shelby also commended the House of Representatives for passing the legislation, which was sent to the House from the Senate last week and will now return to the Senate for consideration.

“We have been working diligently for months on legislation to address the housing crisis.  Last week we sent legislation to the House.  Since then, we have been engaged in extensive and largely fruitful discussions with our counterparts in the House of Representatives, as well as Administration officials. We remain optimistic about the prospects for this legislation.”

Senators Chris Dodd (D-CT) and Joe Lieberman (ID-CT) today praised Senate Appropriations Committee approval of $241.1 million in federal funding for a variety of Connecticut initiatives.  This funding will be used for, among other services, economic development initiatives, education, health care, and family and community support programs – efforts essential to the wellbeing and continued success of Connecticut.

Remarks as Prepared: We meet today in an unusual and extraordinary moment for our country and this Committee.  We are conducting two hearings consecutively.  The first hearing will be to receive the semi-annual monetary policy report from the Federal Reserve, as previously scheduled.  After the conclusion of that hearing, we will convene a second hearing on recent developments in the U.S. financial markets and regulatory responses to them.  This second hearing was noticed yesterday with the consent of Ranking Member Shelby due to the special and exigent circumstances in our nation’s financial markets.

“Today’s Federal Reserve Board regulations should help to put an end to certain abusive lending practices.  Too many homeowners have been put into loans that are unaffordable, and as a result, we are now seeing the devastating effects of the failure of millions of mortgage loans.  My initial reaction is that, if effectively followed and enforced, the new regulations, though not strong enough in all areas, will help to prevent similar abuses in the future.  Under these regulations, lenders will only be permitted to make subprime mortgage loans that are sustainable.  Lenders will no longer be able to qualify borrowers based on the value of the home they are purchasing or on short-term, teaser rates. 

“The Administration's failure to prevent bad lending practices has caused unprecedented hardship in the form of record foreclosures and market turmoil.  Now, homeowners across the country and our entire financial system are suffering the consequences.  Regrettably, the Administration has refused to develop or support any meaningful effort to help keep Americans in their homes and preserve efficiency and stability in our markets.

“IndyMac’s closure is the latest example of the severe consequences associated with risky mortgage lending practices, coupled with regulatory failures which allowed these risky lending practices to occur.  This combination of risky lending and lax regulation is largely responsible for the current problems in our housing markets and overall economy.  I intend to thoroughly examine the implications of this failure.  That said, I am confident in the strength and stability of our banking system, and the mechanisms in place to ensure that depositors have access to their money even when a bank fails.  The FDIC’s announced actions as conservator underscore this strength and stability.”

Connecticut Senator Chris Dodd, Chairman of the Senate Committee on Banking, Housing and Urban Affairs, today announced that the Senate passed the Housing and Economic Recovery Act.  This landmark bipartisan legislation includes major efforts to address the root of our economic problems – the housing crisis – by providing relief to homeowners in Connecticut and across the country, and by introducing broad improvements to the nation’s housing sector. 

Senator Chris Dodd  held a series of “Road to Economic Recovery” events throughout the state to address the challenges facing Connecticut families. Dodd discussed the impact of home foreclosures in Connecticut at the home of Yolanda and Edwin Cruz in East Windsor, CT. Dodd is the Chairman of the Senate Committee on Banking, Housing, and Urban Affairs and author of the Housing and Economic Recovery act, bipartisan legislation before the Senate to help Americans keep their homes and bring much-needed reforms to our housing system.

Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing and Urban Affairs, today announced that the Committee confirmed the nominations of three individuals to serve on the Securities and Exchange Commission, as well as several other nominees for positions within the Administration.  During the 110^th Congress, the Banking Committee has approved a total of 24 nominees, including those confirmed today.