[Congressional Record (Bound Edition), Volume 153 (2007), Part 25]
[House]
[Page 34002]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  SUBPRIME MORTGAGE FORECLOSURE CRISIS

  (Ms. LORETTA SANCHEZ of California asked and was given permission to 
address the House for 1 minute and to revise and extend her remarks.)
  Ms. LORETTA SANCHEZ of California. Madam Speaker, I rise today to 
express concern about the ongoing subprime mortgage foreclosure crisis 
and the administration's ``plan'' to address the crisis.
  The administration proposed a 5-year interest rate freeze, something 
that should have angered the investor community. I should know; before 
I came to Congress, I was an investment advisor. But the investor 
community was not upset. We ask, why? Well, the reason why is that the 
voluntary rate freeze will only apply to a small number of the subprime 
loans that are in danger of default and foreclosure. The Center for 
Responsible Lending estimates that the administration's plan will 
affect 7 percent of subprime borrowers.
  This plan is based on the unrealistic belief that the subprime market 
failure will cure itself. Real leadership is needed to help homeowners 
and the United States economy. The President needs to show support for 
the House-passed legislation that provides additional options for 
borrowers in distress and strengthens the regulation of the mortgage 
lending practices.

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