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Other changes are also intended to prevent mortgage reductions in cases in which a person could afford the loan.
Within the Bush administration, Mr. Bernanke's willingness to work with Democrats in Congress on measures to prevent mortgage foreclosures has stirred unease.
Mr. Frank noted that a $2.4 billion bill to prevent mortgage foreclosure, which has already passed the House, includes a provision backed by Republicans to provide an additional $300 million for law enforcement officials to fight mortgage fraud.
The 272-152 roll call Wednesday by which the House passed a bill that aims to help homeowners facing foreclosure and to prevent mortgage giants Fannie Mae and Freddie Mac from collapsing.
And, he could have arranged to have a meeting with other federal and state regulators to see what they were doing to prevent mortgage fraud in the financial institutions under their jurisdictions as well.
WASHINGTON — The Senate on Wednesday approved a bill that would expand federal efforts to prevent mortgage foreclosures, shield mortgage service companies from lawsuits if they participate in federal loan modification programs, and give renters of foreclosed properties at least 90 days' notice before eviction.
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The notion that securitization contracts would prevent mortgages from being modified was "a red herring".
A recent study by the Community Mortgage Banking Project says that a comprehensive set of quality underwriting standards would be a better means of preventing mortgage default than the mandatory substantial down payments being contemplated by U.S. banking regulators.
In other words, Frank insisted, if the Republicans had wanted to try to prevent the mortgage crisis, they would have had plenty of opportunities to do so.
For example, in the last month, he and his staff have worked with Democrats in Congress to produce housing legislation to prevent more mortgage foreclosures, getting well out in front of the Bush administration, which was threatening to veto one version of the legislation.
There is widespread agreement, for example, that financial regulation failed to prevent the mortgage crisis and the ensuing economic meltdown; that the Environmental Protection Agency's monumentally expensive attempt to regulate CO2 as a pollutant is purely political; that regulators were too cozy with BP ; and that the Food & Drug Administration often fails to assure the safety of medicines.
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