Bush Calls for More Housing-Related Action

President Bush called on Congress to pass legislation that will "help more responsible homeowners weather this rough patch" during a June 6 ceremony to swear in Steven Preston as the new secretary of the Department of Housing and Urban Development. The president noted that foreclosures continue to rise despite the efforts of the Federal Housing Administration and Hope Now servicers to help struggling borrowers. "As Steve takes office, his first priority will be to help lead my administration's response to the challenges in the housing market," President Bush said. In calling on Congress to pass legislation that strengthens regulation of government-sponsored enterprises Fannie Mae and Freddie Mac and updates the FHA mortgage insurance programs, the president did not mention an FHA foreclosure prevention bill that is pending in Congress and could help 500,000 borrowers refinance into FHA loans. However, House Financial Services Committee Chairman Barney Frank, D-Mass., told CNBC-TV that talks with Treasury Department and Federal Reserve officials are continuing and are "getting close" to an agreement on a legislative package that includes GSE and FHA reforms along with the foreclosure prevention program.