Learning English - Words in the News
21 September, 2007 - Published 13:06 GMT
Fed to stop bad lending practices
Thousands of Americans have lost their homes and lenders have been forced out of business in the US mortgage crisis. The Chairman of the Federal Reserve, Ben Bernanke, says actions are needed to stop repossessions and prevent an economic recession. This report from Vanessa Heaney:
With repossessions at a record high and late mortgage payments continuing to soar across the United States, the Federal Reserve Chairman, Ben Bernanke, warned that the situation would get worse, as many borrowers face their first interest rate adjustments. He said thousands of homeowners would be unable to make their increased mortgage payments and were expected to default.
But he offered his assurances that regulators would take steps to curb the economic fallout related to the mortgage crisis. Testifying before Congress, he promised that the Federal Reserve would also crack down on abusive, or bad lending practices.
The US treasury Secretary, Henry Paulson, said that mortgage documents would be simplified, to prevent important information getting buried in the complicated small print.
These comments come two days after the Federal Reserve cut interest rates, to assist the ailing US housing market and prevent the world's biggest economy from falling into recession.
Vanessa Heaney, BBC News, Washington
face their first interest rate adjustments
expected to default
offered his assurances
curb the economic fallout
crack down on
buried in the complicated small print
falling into recession