On October 23, the U.S. Senate Committee on Banking, Housing and Urban Affairs held a hearing titled “Turmoil in the U.S. Credit Markets: Examining Recent Regulatory Responses.” During the hearing, Sheila Bair, the Chairman of the Federal Deposit Insurance Corporation, testified that the Emergency Economic Stabilization Act of 2008 provides the authority for the government to prevent avoidable foreclosures by establishing standards for servicers to modify mortgage loans and providing guarantees or other credit enhancements for loans meeting those standards.

Other witnesses providing testimony at the hearing included Neel Kashkari, Interim Assistant Secretary for Financial Stability and Assistant Secretary for International Affairs, U.S. Department of the Treasury; James B. Lockhart, III, Director, Federal Housing Finance Agency; Elizabeth A. Duke, Governor, Board of Governors of the Federal Reserve System; and Brian D. Montgomery, Federal Housing Commissioner and Assistant Secretary, Department of Housing and Urban Development.