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Klobuchar Statement on Administration Proposal on Subprime Mortgages

December 6, 2007

Washington, D.C. – Today U.S. Senator Amy Klobuchar issued the following statement regarding President Bush’s proposal to freeze interest rates on subprime mortgages:

“I am pleased that after months of trying to wish the problem away the President has finally decided come forward with a proposal for this problem.

“Today's announcement is a small step towards helping homeowners faced with foreclosure.  We must do more if we are truly going to address the housing crisis.

“We need additional reforms to protect borrowers, such as ensuring that borrowers actually understand all the terms of their mortgage in a simple one page description of the terms of their mortgage – including their ability to repay a loan at both the “teaser” rate and the adjusted rate.  It would also ensure homeowner’s aren’t hit with a huge and unexpected tax or insurance bill at the end of the year.

“This is a problem that affects everyone; not just those who are at risk of losing their homes. Foreclosures lead to loss in property value, lost tax revenue and increased costs to the community. We need to protect the economy and take comprehensive action now – before it’s too late. I am glad the President has indicated he would like a seat at the table and look forward to working with him to help strengthen our economy and help our families stay in their homes.”

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