April 18, 2007

Dodd Convenes Homeownership Preservation Summit

Establishes common ground among stakeholders in subprime market

Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today convened a meeting of leaders of some of the largest subprime mortgage lenders, securitizers, and servicers, as well as consumer and civil rights groups, to discuss ideas and develop solutions to the subprime mortgage market crisis which is currently threatening millions of Americans to foreclose on their homes in the near future. The leaders met in a closed-door session which Dodd moderated. “In over a quarter century of serving on the Banking Committee, today I witnessed an unparalleled level of collaboration and genuine care for an issue that is seriously threatening our nation’s economy,” said Dodd. “The mere fact that this many prominent leaders sat around one table to truly tackle the problems in the subprime market was tremendously symbolic and I truly appreciate their participation and their commitment to preserving homeownership. Moreover, we were able to reach a consensus on several concepts that will serve as a foundation to a more concrete solution to this crisis. “Millions of Americans are in financial dire straits due to problems in the subprime market, and today’s meeting was significant progress in developing solutions to keep Americans in their homes and preserve the American dream of homeownership.” During the Summit, Dodd asked participants to agree on the following fundamental concepts: Foreclosures in our nation are at unacceptably high levels. Foreclosures are not in the interests of homeowners, their communities, or those in the mortgage finance industry whose work makes the dream of homeownership a reality for Americans. Summit participants will continue to discuss what steps can be taken – individually and collectively – to preserve homeownership to the fullest extent possible. Chairman Dodd also announced that Freddie Mac would purchase up to $20 billion in fixed-rate and hybrid Adjustable Rate Mortgage (ARM) products that will assist families affected by the subprime crisis and help make the market safer for all borrowers. Chairman Dodd asked Summit participants to continue to share ideas and develop solutions, and to keep him and Ranking Member Richard Shelby (R-AL) apprised of their progress. A longtime advocate for homeownership, Chairman Dodd has focused on predatory lending and the subprime market turmoil for several months, having chaired two hearings since becoming Chairman. The Summit is another element of Chairman Dodd’s comprehensive approach to the problem of rising home foreclosures and defaults, and his overall strategy to keep American families in their homes, ensure that America’s dream of homeownership remains alive, and strengthen America’s economy. Summit Participants included: The Honorable Sheila Bair, Chairwoman, Federal Deposit Insurance Corporation (FDIC The Honorable Brian Montgomery, Commissioner, Federal Housing Administration (FHA) Mr. Daniel Mudd, Chairman and Chief Executive Officer, Fannie Mae Mr. Richard Syron, Chairman and Chief Executive Officer, Freddie Mac Mr. Jim Garner, General Counsel – Retail Distribution North America, Citigroup Mr. Eric Eve, Head of Community Relations, Citigroup Ms. Molly Sheehan, Senior Vice President - Legal and Compliance Department & General Counsel of Chase Home Lending, JPMorgan Chase & Co. Mr. John Vella, President and Chief Executive Officer, EMC Mortgage Mr. Greg Zeeman, Managing Director & Chief Servicing Officer, HSBC - North America Ms. Loretta Abrams, Vice President - Consumer Affairs, HSBC - North America Mr. Patrick Carey, Director and Manager - Loss Mitigation Programs, Wells Fargo & Co. Ms. Muffie Gabler, Senior Manager - Community Development, Wells Fargo & Co. Mr. Sandy Samuels, Executive Managing Director, Countrywide Financial Corporation Mr. Larry Litton, President and Chief Executive Officer, Litton Loan Servicing Mr. John Robbins, Chairman, Mortgage Bankers Association Mr. Martin Eakes, Chief Executive Officer, Self-Help Credit Union Mr. Wade Henderson, Executive Director, Leadership Conference on Civil Rights Mr. Mike Naylor, Senior Advisor for Government Relations and Advocacy, AARP Mr. Bruce Dorpalen, Director of Housing Counseling, ACORN