Senate Banking Cmte. Chairman Sen. Chris Dodd (D-CT) convened a meeting of the Committee members and held a press conference to discuss the state of the economy and the Administration’s proposal as presented to Congressional leaders.

“This evening's meeting is a testament to the extremely serious challenges facing our economy. Tonight, the Administration put forward some constructive ideas, and I look forward to receiving more details. Bad lending practices and lax oversight are the root cause of this crisis. As such, a comprehensive and constructive proposal must include relief for millions of American homeowners facing foreclosure. I am committed to working with the Administration and my Democratic and Republican colleagues in Congress to develop robust solutions to these serious problems.”

Senator Chris Dodd (D-CT) released the following statement today following the announcement that the Administration has agreed to release the remaining contingency funds available for the Low Income Home Energy Assistance Program (LIHEAP).

“I’m pleased that the President has finally heeded the request that my colleagues and I have been making for months and released all available LIHEAP funding. Low income families in Connecticut received little more than $500 last winter to help with heating bills that could be as high as four times that amount this year. This $7 million in additional heating assistance will go a long way toward helping Connecticut’s low income households heat their homes this coming winter,” said Dodd.

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Senator Chris Dodd, Chairman of the Senate Committee on Banking, Housing and Urban Affairs, held a press conference today to discuss the economic crisis and recent turmoil in the markets. Click the link to the right to hear a recording of his opening statement. A transcript is below.

“The economic crisis facing our country is deepening, as we saw over the weekend with the failure of Lehman Brothers and the sale of Merrill Lynch.  To fully understand the implications of these events, we need to learn more about the Administration’s involvement, and its plans going forward.  At the Treasury Secretary’s request, I have postponed tomorrow’s hearing.

“Millions of Americans are struggling to make ends meet as unemployment rises, home values plummet, and everyday necessities like food and gas cost more than ever before.  The Banking Committee has played a vital role both in revealing the pattern of lax regulatory oversight that helped to create this financial crisis, and in addressing related economic problems by crafting comprehensive legislation passed earlier this year.  As Chairman, I will continue to work on solutions to help Americans weather this storm, including strengthening the housing sector, developing a second stimulus package, and restructuring the regulation of the financial sector.”

Today, Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing and Urban Affairs, issued the following statement on Home Mortgage Disclosure Act data released by the Federal Reserve, which showed that denial rate differences based on race widened from 2006 to 2007:

“This data is further proof of a disturbing and continuing trend of unfair lending practices in our country.  At a time when turmoil in the mortgage markets caused by unfair and unsound lending practices is making credit less available to all Americans, minority borrowers are confronted with significant racial and ethnic disparities when trying to purchase a home.  The Banking Committee will continue to focus on how to address discriminatory lending practices and end these disparities in order to ensure that homeownership is equally available to all Americans.”

Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today issued the following statement:

“There are still many unanswered questions about the Administration’s plan, and Americans deserve to know if this unprecedented proposal will help keep mortgages affordable, stabilize the markets, and protect taxpayer interests.  Furthermore, we need to understand the circumstances which led the Administration to change course.  Just weeks ago, Secretary Paulson testified that he thought he would never use this authority – a message he reiterated until very recently.

Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today issued the following statement:

“I spoke with Secretary Paulson yesterday and was advised of the Administration’s intent to use its new authority to act in connection with the GSEs.  Any government action must help to strengthen our economy, which is suffering a crisis brought on by the Administration's failure to stop predatory lending and promote sound economic growth. The GSEs must remain active and aggressive in the mortgage markets, as these companies play a critical role in making affordable mortgages available to hard-working Americans.  Any intervention also must minimize the cost to American taxpayers, and should not put other financial institutions at risk.  As the final aspects of this plan take shape, I look forward to speaking with Secretary Paulson, Chairman Bernanke, and other officials to ensure that their actions further these important objectives.”

Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing and Urban Affairs, today issued the following statement after President Bush signed into law the Housing and Economic Recovery Act, which Dodd authored along with Senator Richard Shelby (R-AL):

“Today marks an important change in the federal government's response to the economic strain being felt by millions of Americans across the country and our financial markets.  This is the most sweeping housing legislation since the Great Depression, representing a turning point in our country's commitment to economic growth and affordable housing, and providing relief to homeowners and communities across the country.  I congratulate the President for signing it, and I am committed to ensuring that this law is implemented effectively and expeditiously, and that it fulfills its promise to prevent foreclosures, restore home values, stabilize our housing markets, and create economic growth.”

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 announced that the Senate passed the Housing and Economic Recovery Act by a vote of 72-13.  This legislation is expected to help hundreds of thousands of Americans who are struggling to keep their homes, as well as countless homeowners and communities who are already experiencing the devastating effects of foreclosure.  The legislation also contains comprehensive reforms to our nation’s housing sector, including the creation of a strong, new regulator for the government-sponsored enterprises.  In response to recent turmoil in our financial markets, the bill also includes provisions requested by the Treasury Department to restore confidence in Fannie Mae and Freddie Mac.