September 19, 2007

Committee Passes Dodd’S Bill to Help Families Keep and Buy Their Homes

Legislation seeks to protect, preserve and promote the American dream of homeownership

Senator Chris Dodd (D-CT), Chairman of the Banking, Housing, and Urban Affairs Committee, today announced that the Committee passed the Federal Housing Administration Modernization Act of 2007. The legislation seeks to help American families that have been hit hard by the current crisis in the mortgage markets, including those who currently face the threat of foreclosure and those who may be trying find fair and affordable financing to buy a new home.
    “This legislation is vitally important to helping working families find safe, fair, and affordable mortgages,” said Dodd. “It’s not enough to pay lip-service to the ideal of homeownership while millions of families struggle to keep their homes. It’s time for action. This legislation can help generate quality mortgage credit for working families and help them avoid the wave of foreclosures that is expected to sweep through the communities and neighborhoods of our country in the coming 18 months. This legislation will be a source of this affordable, wealth-building credit, both for new homeowners and for people who are seeking a way out of the abusive loans in which they are currently trapped. I will continue to fight for its swift passage so that homeowners can get the relief they deserve.”
This legislation is part of Chairman Dodd's comprehensive strategy to protect, preserve and promote the American dream of homeownership. Since becoming Chairman of the Senate Banking Committee, Dodd has made American homeownership a top priority, convening two hearings to examine the problems in the sub prime mortgage market and successfully persuading the Federal Reserve to meet its obligations under the Homeownership and Equity Protection Act (HOEPA) to protect borrowers from unfair, deceptive, and misleading actions against homebuyers. Earlier this year, Chairman Dodd brought together lenders, services, and representatives from Fannie Mae and Freddie Mac at a Homeownership Preservation Summit, where the leaders in the industry committed to make their best efforts to help homeowners stay in their homes. Dodd has worked to secure $200 million in federal funding to help at-risk homeowners find affordable mortgages, and has also advocated that the Administration raise the portfolio caps for Freddie Mac and Fannie Mae in a manner that is safe, sound, and targeted to consumer-friendly mortgages.
Click here for the key provisions of the bill .