Remarks by
John C. Dugan
Comptroller of the Currency
Before Neighborhood Housing Services of New York
May 23, 2007

It’s a pleasure to be here with you this morning, and not just because I serve on the
board of directors of NeighborWorks America. At a time of rising delinquencies and
foreclosures, I’m grateful for the opportunity to address an organization that has done so
much, not just to help families buy homes, but to help them keep those homes. Under the
outstanding leadership of your president, Sarah Gerecke, Neighborhood Housing Services of New York helped 462 first-time homebuyers obtain affordable mortgages last year, which is a significant accomplishment in its own right. In addition, your very important financial literacy efforts gave many people the skills they needed to participate in the housing boom without falling prey to its excesses. I know that your delinquency and foreclosure prevention program helped nearly 1,800 people last year alone, and in my view, helping a family avert a foreclosure is just as important — maybe even more important — as helping them obtain the mortgage in the first place.

Despite the significant recent problems with subprime mortgages, it’s important to
remember that the huge growth in the housing market has been good for many people — and not just speculators and developers. Millions of lower-income Americans who might not
have been able to make it through the door of a mortgage broker’s office ten years ago are walking through the front doors of their own homes today, thanks in large part to innovations in subprime lending that helped fuel the housing boom.

View entire speech [PDF]