September 19, 2007

Statement of Chairman Dodd on Today’s Decision by OFHEO to Modify Fannie Mae and Freddie Mac Portfolio Caps

“The decision by the Administration to modify the GSE portfolio caps can only be described as timid and inadequate. I have been urging the Administration for many weeks to take bold action to maintain liquidity and stability in the mortgage markets. But instead of strong, effective action, the Administration has taken what can at best be described as a baby step, and what is in reality little more than a symbolic gesture. The Fed, by its actions yesterday, now seems to understand what I and others have been arguing for quite some time: that the subprime mortgage crisis is a serious matter for homeowners and for the overall economy. It's time for the Administration to come to the same recognition and act appropriately to protect homeowners from abusive loans and restore confidence and liquidity to the mortgage markets.”