Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today announced his intention to introduce legislation that will create a new program within the Federal Housing Administration (FHA) to provide aid to distressed borrowers currently trapped in mortgages they cannot afford.  Under the “HOPE for Homeowners Act of 2008," new mortgages that are offered by FHA-approved lenders will refinance abusive loans at a significant discount for homeowners facing difficulty meeting their mortgage payments. 

Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, yesterday voiced his deep concerns about allegations that Alphonso Jackson, Secretary of the Department of Housing and Urban Development (HUD), has acted improperly in granting federal contracts.  After raising the issue with Secretary Jackson at a HUD oversight hearing, the Chairman outlined his concerns and questions in a letter sent yesterday.

Remarks as Prepared: I want to welcome everyone to this important hearing to conduct oversight of the U.S. Department of Housing and Urban Development and examine the Administration’s proposed budget for Fiscal Year 2009.  The Department of Housing and Urban Development, or HUD, plays a vital role in the lives of millions of Americans around the country, both through direct housing assistance and initiatives which strengthen entire communities. 

Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today issued the following statement on the announcement by the Federal Reserve to expand its securities lending program in order to offer additional liquidity to the markets:

“Last week, I publicly asked the Federal Reserve whether it should consider additional measures to address the liquidity lock-down that has spread through our credit markets.  Today’s announcement by the Fed is a significant step to address this very serious situation.  Additional steps should also be considered to address the root cause of the present market turmoil – namely, the foreclosure crisis.  I am preparing legislation to do so which, like the Fed’s action today, can help restore stability and liquidity to the mortgage market and credit markets generally.”

Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing and Urban Affairs, today released the following statement on data released by the Mortgage Bankers Association on mortgage delinquencies reported in the fourth quarter of 2007:

“The data released this morning on the number of delinquent mortgage loans and foreclosures is deeply disturbing, and underscores the need for aggressive, innovative solutions to the unprecedented challenges we are facing in the housing market.  Particularly troubling, although not surprising, is that many of these loans originated in the subprime market, where predatory lending practices victimized homeowners.  In fact, data released by the Fed today showed that for the first time on record, homeowners in the aggregate own less than half of the value of their homes. As our economy continues to slow, it is not going to get any easier for homeowners to make their mortgage payments while keeping pace with the rising costs of fuel, food, and other necessities.  Put simply, these people need help now – not just “Hope Now.”  Unfortunately, the Administration, whose lax oversight led to this crisis, has put only a flimsy plan in place that fails to offer enough of either.  I am committed to doing everything in my power as Chairman to help these individuals, and to ensure we have the safeguards in place to prevent this situation from occurring again.”

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Remarks as prepared: I’d like to thank you all for coming to this important hearing on the Low-Income Home Energy Assistance Program, or LIHEAP. For 27 winters, since 1981, LIHEAP has helped millions of people pay their heating bills and keep their families warm.

WASHINGTON, DC – Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing and Urban Affairs, yesterday introduced the Section 8 Voucher Reform Act of 2008 (SEVRA). The Section 8 program is a successful public-private partnership where local agencies assist families in renting private market housing.  Currently, Section 8 vouchers are used by almost 2 million low-income families across the nation, including many of our nation’s most vulnerable – children, seniors, and people with disabilities. 

Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today held a hearing with federal bank regulators on “The State of the Banking Industry.”  Dodd emphasized the important role that regulators play in securing credit in our economy, and in protecting American taxpayers who trust their deposits to be safe.  In outlining the current financial strain on American consumers, entrepreneurs, and lenders, Dodd pointed to the failure of the Federal Reserve earlier this decade for not playing a more active role in preventing the predatory lending practices which were largely responsible for the meltdown in the mortgage market and, in turn, the economic downturn we face now.