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	For Immediate Release: August 31, 2007
	Frank Statement on the President’s Remarks on the Mortgage Markets
	Washington, DC - Rep. Barney Frank (D-MA), Chairman of the House Committee on Financial Services, today offered the following statement in response to President’s address on problems in the mortgage markets: “I welcome the Administration’s recognition that a greater public response is required and I look forward to working with them because I agree with a number of specific things that they propose. The Financial Services Committee has already advanced legislation, including a GSE bill that awaits Senate consideration, and we hope to send the FHA bill over soon.  We also are working with the Ways and Means Committee to address the tax issues involved.  However, there are some points of difference that we will need to work out going forward: With regard to the FHA, going forward, I don’t think that working people and lower income people who are making payments to the federal government should be charged more than others.  Second, I agree that the rules that regulators have developed for banks have been good ones, but I believe that federal action is necessary to apply them to all originators and the time for further study is over. Third, there should be some rules to provide some quality assurance to investors in the secondary market. At his speech in Jackson Hole, Federal Reserve Chairman Bernanke noted the need for modification of the securitization process to provide greater investor protection and increased incentives for responsible lending. I believe that well- drafted legislation is essential to achieving this.  Next, I continue to believe that the portfolios of Fannie Mae and Freddie Mac can play a bigger role than they are currently are playing, particularly in helping the refinancing of subprime mortgages that are about to experience significant interest rate increases.  I believe that the Administration’s objections to this are not based on safety and soundness grounds, but represent their one remaining ideological refusal to recognize the need for a greater institutional role in this regard.  Finally, there needs to be a federal role in the construction of new affordable housing and preservation of existing affordable housing.” For more information about HR1852, The Expanding Homeownership Act of 2007, please click on the following link: http://www.house.gov/apps/list/press/financialsvcs_dem/press050307.shtml For more information about HR1427, The Federal Housing Finance Reform Act of 2007, please click on the following links: http://www.house.gov/apps/list/press/financialsvcs_dem/press052307.shtml and http://www.house.gov/apps/list/press/financialsvcs_dem/press032907.shtml