Patrick McHenryChairman

WASHINGTON, May 7, 2009 -

- Congressman Spencer Bachus (AL), the top Financial Services Committee Republican, issued the following statement:

"I'm disappointed that Democrats worked to strip language that would have ensured that taxpayer funds could not be directed to activist groups under criminal indictment. American taxpayers should not bankroll organizations under indictment for fraudulent practices.

"While some argue that mortgage reform legislation is needed to prevent bad actors from engaging in predatory lending practices, they fail to recognize that Congress and the Federal Reserve have already acted. Last year, the Fed issued comprehensive rules that incorporated many of the provisions included in the bipartisan subprime legislation that I supported last Congress. The Fed recently told us these protections are being implemented.

"Congress should let these rules take effect before rushing to pass mortgage reform legislation. This bill, which consumer groups and organizations have called convoluted, will restrict credit, increase costs and make it more difficult for qualified, working-class American families to gain access to a mortgage. Congress can, and must, do better."

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