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May 13, 2008 8:44:39 AM CDT

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US Must Stop Foreclosures, Bernanke Warns  

Posted May 6, 08 2:35 AM CDT in US,  Business    Most Covered

(newser) – Federal Reserve Chairman Ben Bernanke yesterday called for government intervention to halt home foreclosures, warning that to do nothing could "destabilize communities, reduce property values of nearby homes, and lower tax revenues." Bernanke said in a speech in New York that a million Americans were already three months behind in mortgage payments at the beginning of this year, threatening dire consequences for the future of the economy, reports the Los Angeles Times.

"High rates of delinquency and foreclosure can have substantial spillover effects on the housing market, the financial markets and the broader economy," said Bernanke, urging government intervention and cuts in loan repayment requirements. "Doing what we can to avoid preventable foreclosures is not just in the interest of lenders and borrowers—it's in everybody's interest."

Source Los Angeles Times

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US Must Stop Foreclosures, Bernanke Warns
Federal Reserve Chairman Ben Bernanke is calling for government action to halt foreclosures on home mortgages.   (AP Photo)
US Must Stop Foreclosures, Bernanke Warns
A foreclosure sign is seen on the lawn of a home in Egg Harbor Township, N.J.   (AP Photo/Mel Evans, file)
US Must Stop Foreclosures, Bernanke Warns
Home for sale signs line a street of a new subdivision in Cascade Locks, Ore.   (AP Photo/Don Ryan)
US Must Stop Foreclosures, Bernanke Warns
Federal Reserve Chairman Ben Bernanke warns to mortgage crisis yesterday in speech in New York.   (AP Photo/Craig Ruttle)
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Federal Reserve  • Ben Bernanke  • foreclosure  • Federal Housing Administration  • House Financial Services Committee


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