October 23, 2007

Statement of Chairman Dodd on Countrywide Announcement

“Countrywide’s announcement to modify some loans is a welcome, if late, decision. I am pleased Countrywide is implementing the Homeownership Preservation Principles they agreed to last May. However, this problem reaches far beyond the 82,000 borrowers they have agreed to assist. The reality is, many more hardworking Americans are at risk of losing their homes unless subprime lenders quickly adopt and implement a set of standards and procedures for reaching out to them. Lenders have a responsibility to help qualified borrowers modify their mortgages so that they are affordable in the long-term. As the Chair of the FDIC says, we need a rules-based approach to address this problem so that borrowers are not mired in red tape while attempting to save their homes. The wave is coming -- lenders need to act now.”