November 27, 2007

Statement of Chairman Dodd on Housing Market Turmoil and S&P/Case Shiller Home Price Index Report for 3rd Quarter

“The holiday season should be a joyous time when people treasure time with their families. But for far too many Americans, a financial cloud is hanging over the season as people are either grappling with the terrible prospect of losing their homes or worried about the value of their home. Today’s report showing a drop of nearly 10 percent in home prices, along with other data, indicate on-going economic turmoil arising from the housing crisis. Another report by the Conference of Mayors indicates the potential problems our state and local governments will face as a result of the decline in home values. The root of this crisis is predatory lending. The Fed and other regulators have a duty to protect homebuyers from this type of lending. In addition, I will introduce legislation shortly to protect homeowners from this problem, which will help restore confidence to the markets.”