Paulson Criticized as Proposing Only Short-Term Mortgage Fixes

By MARGARET HO, Special to the Sun | July 23, 2008 The Treasury secretary is offering few long-term solutions to the mortgage crisis that has sent Fannie Mae and Freddie Mac into a tailspin in recent weeks, economists said. In a speech yesterday at the New York Public Library, Treasury Secretary Paulson called housing "the largest factor currently impacting our financial markets," and asked Congress to immediately pass the Bush administration's proposal for overhauling the mortgage industry. "The sooner we work through the housing correction, the sooner home prices will stabilize, and uncertainty about the values of mortgage-related assets will be more easily determined," Mr. Paulson said, adding that, "now, more than ever, we need Fannie and Freddie out there, financing mortgages." Last week, the Bush administration proposed... [read full story]