[Congressional Record Volume 153, Number 44 (Wednesday, March 14, 2007)]
[House]
[Page H2490]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            SUBPRIME LENDING

  (Mrs. MALONEY of New York asked and was given permission to address 
the House for 1 minute.)
  Mrs. MALONEY of New York. Mr. Speaker, in the last 2 weeks, we have 
seen a tsunami of foreclosures and turmoil in the subprime markets. The 
Federal regulators' recent joint guidance to stop issuance of loans 
that borrowers can't repay in full is a good first step, but lenders 
won't make bad loans if no one will buy them. The secondary market must 
stop buying the loans causing this crisis.
  Freddie Mac did this voluntarily, and I am introducing legislation to 
require all the housing GSEs to do the same. In the interim, I call on 
Fannie Mae and the Federal Home Loan Banks to follow Freddie Mac and 
stop buying these risky loans. Both Congress and the GSEs must act to 
protect homeowners and stabilize the system.

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