Hearing on the Secondary Market and Subprime Mortgage Lending
Witness List & Prepared Testimony: Ms. Cara Heiden, Division President, Wells Fargo Home Mortgage; Mr. Warren Kornfeld, Managing Director, Moody's Investors Service; Mr. Howard Mulligan, Attorney at Law, McDermott, Will and Emery; Mr. Donald C. Lampe, Womble Carlyle Sandridge & Rice, PLLC; Mr. Michael Calhoun, President and Chief Operating Officer, Center for Responsible Lending; Mr. Larry B. Litton, Jr., President and CEO, Litton Loan Servicing; Ms. Judy Kennedy, Executive Director, National Association of Affordable Housing Lenders
| Subcommittee Chairwoman Carolyn Maloney: "This is the third in a series of hearings that the full committee and this subcommittee are holding on the topic of subprime lending and what legislative action, if any, might be appropriate to address the rapidly growing subprime mortgage crisis." |
Mr. Michael Calhoun, President and Chief Operating Officer, Center for Responsible Lending, and Ms. Judy Kennedy, Executive Director, National Association of Affordable Housing Lenders, give opening testimony:
| Michael Calhoun: "The secondary market will not - will not - correct the structures and incentives that have led to the current crisis. The secondary market measures risk and allocates that risk, it can structure and handle loans where one out of five borrowers lose their homes." Judy Kennedy: "We come to this point and we say 'how long can this be going on?' How could this happen, still be happening, and why? And frankly I think it comes back unintended consequences regarding the absence of a sheriff in the secondary market." |