Lawmakers Urge Subprime Lending Rules, Regulations

Lawyers USAMay 08, 2007

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Summary


The recent high-profile spike in adjustable-rate subprime mortgage foreclosures continues to spur action on Capitol Hill, as House Financial Services Chairman Barney Frank, D-Mass., and ranking member Spencer Bachus, R-Ala., called on the Government Accountability Office to investigate the high number of foreclosures in the subprime foreclosure market.

In an April 25 letter to GAO Comptroller General David M. Walker, Reps. Frank and Bachus stated they were "very concerned with the significant increase in foreclosures on residential mortgages seen in recent months" and asked the office to "conduct a thorough study of the reasons for the recent surge in foreclosures."

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Lawmakers Urge Subprime Lending Rules, Regulations

"It seems clear that the type of mortgages that have been offered ...

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