Statement by Bill Richardson Declaring Bush's Plan on the Mortgage Crisis to be "Too Little, Too Late"

SANTA FE, NM -- Responding to President Bush, who today announced new plans to cope with the subprime lending crisis, New Mexico Governor Bill Richardson said:

"As with Katrina, the administration's action with regard to the mortgage crisis is too little, too late. George Bush has let this industry regulate itself and the result has been devastating and turned some in the mortgage industry into loan sharks.

"The most critical piece missing from the President's comments is transitional housing and rental assistance for families who do not qualify for refinanced mortgages and, as a result, lose their homes. These families should not be forgotten or cast out of their homes without any place to go. Hundreds of thousands of people are going to lose their homes as a result of the President's negligence and he calls this a soft landing. Losing your home is not a soft landing. As on so many issues, this President is out of touch with Americans and the problems of ordinary citizens.

"We also need strict rules and transparency regarding the relationship between lenders and the agencies who rate them. The President's proposal again falls short. Bush's suggestion that we study the relationship between credit raters and financial institutions is something we have heard before. Too often this administration has used the word "study" as a euphemism for doing nothing and letting Americans suffer. Leadership is about action. I have a strong record in New Mexico, both in cracking down on unscrupulous lenders with the Home Loan Protection Act and in leading on affordable housing issues with the Home Equity with Required Occupation program. It is important for the President to protect the middle-class dream of home ownership. I have and I will."