Bernanke Says Mortgage Crisis Will Continue

Washington, DC, March 4, 2008--Federal Reserve Chairman Ben Bernanke said the mortgage crisis isn’t over and he called for measures to prevent more distressed homeowners from falling into foreclosure.

"This situation calls for a vigorous response," Bernanke said to a Florida banking group.

Bernanke said that foreclosures and late mortgage payments are likely to rise.

"Reducing the rate of preventable foreclosures would promote economic stability for households, neighborhoods and the nation as a whole," Bernanke said.

"Although lenders and servicers have scaled up their efforts and adopted a wider variety of loss-mitigation techniques, more can, and should be, done."

Bernanke called for mortgage and other financial companies to reduce the amount of the loan principal provide relief.