Sean Patrick Maloney: “The economic crisis we are facing is no longer just a subprime crisis, but a credit crisis. Subprime losses are mounting…”

“The economic crisis we are facing is no longer just a subprime crisis, but a credit crisis. Subprime losses are mounting and the economic pain is being felt in communities across this country, as the ripple of foreclosures spreads to neighborhoods and local economies. Economists estimate that between 2 million and 5 million families could lose their homes by the end of 2008, more than the number of families that lost their homes during the Great Depression. Democrats are working hard to help families stay in their homes and prevent another crisis like this from happening in the future. With this bill, we take the first step towards reforms for the future. The bill would bring mortgage brokers who are currently regulated on a state-by-state basis under a nationwide licensing registry, establish minimum standards for home loans, and expand certain limits on high-cost mortgages. It also would prohibit brokers from steering consumers to mortgages they are unlikely to be able to repay.”