White House and Congress Duke it Out Over Housing Market Blame

Speaker of the House Nancy Pelosia (D. Calif.) and Senate Majority Leader Harry Reid (D. Nev.) scheduled a joint press conference today asking for the Bush Administration to appoint a senior adviser in charge of limiting the record number of homeowners entering the foreclosure process. These top Democrats and the White House had it out today blaming each other for failing to do more to prevent the mortgage market problems and rising foreclosures. Mr. Reid called it a national crisis and said that the bush administration failed to help more borrowers refinance from expensive adjustable rate mortgages. He also stated that the White House should approve at least $200 million for counseling for borrowers to prevent foreclosures. He also stated that we should raise portfolio caps on Fannie Mae and Freddie Mac which would allow more people to refinance into a more stable mortgage program. If you remember on September 20th a meeting with Bush, Fed Chief Ben Bernanke, and Treasury Secretary Henry Paulson about the housing market where they had asked for Congress to raise these caps.

The White House quickly answered back stating “The Administration has stepped forward within the full extend of its statutory and regulatory abilities,” “Why hasn’t Congress been equally proactive?”

Back in September 4th Bush released a program called FHA secure that is designed to help people who’s mortgages started adjusting and are having problems making the payments. “Why hasn’t Congress passed FHA reform legislation, which has been bottled up all year?” the White House said today. The White House also questioned why they have not passed reforms on Fannie Mae and Freddie Mac.

Hopefully both sides will stop pointing fingers soon and come up with a resolve that will help the millions of Americans who’s mortgage payments are about to start adjusting.