Daily Real Estate News | May 6, 2008 Bernanke Wants FHA, GSE Leeway

Daily Real Estate News | May 6, 2008 Bernanke Wants FHA, GSE Leeway

Federal Reserve Chairman Ben Bernanke has again warned
Congress that failure to take significant steps to end the
foreclosure crisis could have a serious impact on the U.S.
economy.


"High rates of delinquency and foreclosure can have substantial
spillover effects on the housing market, the financial markets
and the broader economy," Bernanke said in a dinner speech
Monday to the Columbia Business School in New York.
"Therefore, doing what we can to avoid preventable foreclosures
is not just in the interest of lenders and borrowers.
It's in everybody's interest," he said.


Bernanke called on Congress to give FHA more leeway
to help distressed borrowers. He also asked Congress
to move ahead on legislation revamping the secondary
mortgage market companies Fannie Mae and Freddie Mac.


Source: The Associated Press, Jeannine Aversa (05/05/2008)