PRESIDENT BUSH DELIVERS REMARKS ON MORTGAGES
Thursday, December 6, 2007; 1:58 PM
DECEMBER 6, 2007
SPEAKER: PRESIDENT GEORGE W. BUSH
BUSH: Good afternoon.
Now, before turning to the situation in the housing market, I send my sympathy to the families of those murdered in Omaha, Nebraska, yesterday. I was in Omaha just before the shooting took place, and I know what a difficult day it is for that fine community.
The victims and their loved ones are in the prayers of Americans. The federal government stands ready to help in any way we can, and our whole nation grieves with the people of Omaha.
I just had an important discussion on the housing market with Secretary Paulson and Secretary Jackson and members of the mortgage industry. The housing market is moving through a period of change.
In recent years, innovative mortgage products have helped millions of Americans afford their own homes, and that's good. Unfortunately, some of these products were used irresponsibly.
Some lenders made loans that borrowers did not understand, especially in the subprime sector. Some borrowers took out loans they knew they could not afford. And, to compound the problem, many mortgages are packaged into securities and sold to investors around the world.
So when concerns about subprime loans began to mount -- began to mount, uncertainty spread to the broader financial markets.
Secretary Paulson and Secretary Jackson and Chairman Bernanke are monitoring developments in the housing market and working to limit the disruption to our overall economy.
Data released this morning confirmed the difficulty facing the housing market. Yet, one reason for confidence is that the downturn in housing comes against the backdrop of solid fundamentals in other areas, including low inflation, a healthy job market, record high exports.