WASHINGTON, DC - U.S. Senator Jack Reed (D-RI) today issued the following statement in response to President Bush's proposals on the mortgage crisis.

"It is deeply troublesome that the Administration waited until now to take action on behalf of the hardworking families who are losing their homes and financial nest eggs. For months, I have been calling for swift action to help prevent their personal financial tragedies from escalating into a full blown national crisis. While providing a measure of relief to struggling homeowners is a step in the right direction, I am concerned that the President's proposals do not go far enough. It is critical that we address the fundamental weaknesses in the housing market to help protect American families," stated Reed.

In May, Reed proposed the Home Ownership Protection and Enhancement (HOPE) Act of 2007. The Hope Act is a $615 million initiative that will help prevent financially distressed homeowners from losing their homes and assist in steering more people away from the brink of foreclosure. "This legislation will help states establish and enhance outreach programs to proactively find homeowners at risk of losing their homes and help them avoid foreclosure," stated Reed, a senior member of the Banking Committee, which oversees federal housing policy. "I also plan to investigate additional measures that would offer greater transparency for investors and help stabilize our financial system."