Dems Seek Czar, Cite Mortgage ‘Katrina’

Democratic members of Congress called today for President George W. Bush to appoint a "mortgage czar," among other measures suggested to deal with record-setting numbers of home mortgage foreclosures resulting from risky lending in recent years.

The mortgage czar would coordinate a federal response to the mortgage crisis, which should also include, according to Democrats, relaxed limits on the amounts of debt that government-backed mortgage finance companies Fannie Mae and Freddie Mac may hold, reports Reuters.

"This crisis is the equivalent of a slow-motion, 50-state Katrina, taking people's homes one by one, devastating their lives and destroying their communities," said Christopher Dodd, who chairs the Senate Banking Committee, at a press conference.

Said White House spokesman Tony Fratto: "We have a housing czar, his name is Alphonso Jackson, he's the secretary of [the Department of] Housing and Urban Development."

President Bush announced a program to deal with the mortgage crisis in late August, as discussed in an earlier ABAJournal.com post.