Senators Call For Freeze on Foreclosures

Senators Call For Freeze on Foreclosures

Various news agencies in the last several days have reported that four U.S. Senators have urged mortgage companies, Fannie Mae, and Freddie Mac to temporarily halt foreclosures on loans they hold.

The lawmakers advised the new chief executives and federal regulator now running Fannie Mae and Freddie Mac.  The beleaguered companies, seized by the government a week ago, should help struggling borrowers attempting to keep their homes, to swap their mortgages for more affordable loans.

The senators, Democrats Charles Schumer of New York, Sherrod Brown of Ohio, Bob Casey of Pennsylvania, and Bob Menendez of New Jersey state that the companies should "take whatever actions are necessary" so more families "do not have to suffer the economic and personal disaster of foreclosure."

In a action to help reverse or at least end a prolonged housing and credit crisis, the Bush administration seized control of the companies.  Fannie Mae and Freddie Mac are now in conservatorship, which ultimately could cost billions for taxpayers.

There is an Associated Press article, which provides more depth into the current situation.  It is available at: http://www.sacbee.com/845/v-print/story/1228915.html