Barney Frank, Democratic Representative from Massachussets said, “We have a national crisis to which we have to respond.” Frank, the head of the U.S. House Financial Services Committee, was not referring to terrorism or war. He was discussing the crisis in the housing markets brought on by the recent sub-prime mortgage debacle.
The committee voted today to send a measure to the House that is meant to overhaul mortgage lending practices and curb abuses by lenders. The legislation is designed to help curb foreclosures and is being backed by both Democrats and Republicans.
According to a November 1st report from RealtyTrac, third quarter numbers showed that foreclosures doubled since last year and the Congressional Joint Economic Committee projects that nearly 2 million homeowners will lose their home to foreclosure from now through 2009.
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