John Taylor, the president and chief executive of the National Community Reinvestment Coalition, said Tuesday that the government should step up its efforts to prevent foreclosures.
"The administration needs to stop talking like it doesn't have the power to stem the foreclosure crisis," Taylor said in a press release. "They have more than the bully pulpit; they have tremendous leverage."
Taylor said that the government controls Fannie Mae, Freddie Mac and the Federal Housing Administration.
Taylor also said the Federal Reserve Board should offer incentives for banks to reduce their principal balance on a total of $1.1 trillion worth of loans held in mortgage backed securities. Doing so, he said, would help to prevent further foreclosures. Fed Chairman "Ben Bernanke himself has tremendous power over these mortgages," said Taylor. "If he does it, others will follow."
