Sean Patrick Maloney: “in the last 2 weeks, we have seen a tsunami of foreclosures and turmoil in the subprime markets. The Federal regulators'…”

“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.”