DEMOCRATS CONSIDER LEGISLATION TO STOP FORECLOSURES

Democrats, Blaming a Hands-Off Approach, Press for Action to Aid HomeownersNew York Times (08/21/07) P. C3; Andrews, Edmund L.Democrats continue to criticize the White House over the way it has responded to the problems in the housing market, and say its hands-off approach is responsible for the troubles that many homeowners face. Senate Banking Committee Chairman Christopher Dodd, D-Conn., is scheduled to meet with Treasury Secretary Henry Paulson Jr. and Federal Reserve Chairman Ben Bernanke on Tuesday to discuss ways to shore up the markets and keep homeowners from losing their properties to foreclosure. Other presidential hopefuls Sen. Hillary Rodham Clinton, D-N.Y., and John Edwards, a former senator from North Carolina, have proposed funds to bail out families that have fallen behind on their mortgage payments and legislation that would require lenders to restructure the terms of their loans. Meanwhile, Democrats in Congress argue that tougher rules are needed on deceptive and unfair practices such as teaser rates and that Fannie Mae and Freddie Mac should be able to buy and hold more mortgages; some lawmakers also believe lenders should be forced to rewrite the terms of loans that are unsuitable for borrowers.