9 weeks 5 days 5 hours ago Barney Frank defends his foreclosure plan Play video

(Peter Howe, NECN: Boston, Mass.) - Massachusetts Congressman Barney Frank was in Boston Friday defending his plan to help Americans struggling with foreclosure. The President has vowed to veto Frank's proposal if it is passed.

NECN's Peter Howe has details.

Script:

When Democrats regained control of Congress last year, Massachusetts' Congressman Barney Frank became Chairman of the Financial Services Committee. Frank's never been shy about expressing opinions, but now his opinions can move the stock market. And with the mess in the real estate markets, sub prime mortgage crisis, the collapse of Bear Stearns, Frank says after years of deregulation, the time has come for some reregulation.

Frank was in town to speak to business leaders at the Boston Harbor Hotel. One area where he's especially pushing for stronger regulation - home mortgages originated by non-bank financial institutions.

"We see this in the subprime crisis. If in fact residential mortgage loans were made only by banks or thrifts or credit unions, then we would not have a sub prime crisis. And we would not have the economic problem we now have."

One area where Frank is already pushing to get the federal government more involved in the markets, is rescuing homeowners at risk of foreclosure. The House recently approved Frank's proposal for federal loan guarantees to roll over $500,000 troubled mortgages . Totaling $300 billion in debt at risk of foreclosure. The net

Nearly forty Republicans in the House went along with Democrats backing Frank's plan. It's now in front of the Senate.