Federal Foreclosure Study

WASHINGTON, April 25 (Reuters) - Two leading members of the U.S. House of Representatives Wednesday sought a federal study of the current problems in the subprime mortgage sector and an increase in the rate of home foreclosures.
Failed loans to subprime borrowers with damaged credit have pushed up mortgage delinquency and foreclosures in recent months.

The study should examine what caused the surge in foreclosures, what communities have been hardest hit and how “the recent rise in foreclosures compare to the scope of foreclosures in previous housing downturns,” according to a letter seeking the study.
The study should also consider what regulators did to prevent the current problems and what impact “17 consecutive Federal Reserve interest rate increases had on borrowers with adjustable rate mortgages,” the letter states.

The report was requested by Rep. Barney Frank, chairman of the House Financial Services Committee and the top-ranking Republican on the panel, Spencer Bachus of Alabama.
The Government Accountability Office, a non-partisan research agency, typically fulfills such requests that come jointly from leading Democrats and Republicans.

Frank, a Massachusettes Democrat, and Bachus wrote that they are “developing workable solutions to the current problems in the subprime mortgage market… and our Committee will be considering legislation on the subject in the coming months.”


I am not surprised of the rising interest rate during that time. The Federal Reserve was complicit in the subprime mortgage collapse. The Federal Reserve was trying to get more "profits" to the banking industry. The only problem the Federal Reserve didnt know where the line of collapse factor or the Federal Rserve chose to ignore it.

Squeeze as much out of the little guy as possible to get more profits to the banks and the top 1% of the rich rich folks in America. So much of what the Federal Reserve has done is so much like the ways of the Bush Administration.