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Treasury Sec. Calls for Action on Mortgage Crisis

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Treasury Sec. Calls for Action on Mortgage Crisis

In a speech at Georgetown University’s law school, Treasury Secretary Henry Paulson called Tuesday for an overhaul of laws and regulations governing mortgage lending to halt abusive practices that contributed to the current crisis.

He also asked the financial industry to provide immediate help for homeowners trying to refinance.


"Despite strong economic fundamentals, the housing decline is still unfolding, and I view it as the most significant current risk to our economy," Paulson said in his most somber assessment of the crisis to date. "The longer housing prices remain stagnant or fall, the greater the penalty to our future economic growth."

In his speech, Paulson said the government must balance the need to help homeowners stay in their homes against the threat that government rescue efforts could encourage investors to make risky decisions in the future. "I have no interest in bailing out lenders or property speculators," he said.

Source: The Associated Press, Martin Crutsinger (10/16/2007)

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