Well this was unexpected.

U.S. Sen. Christopher Dodd, chairman of the Senate Banking Committee, is blaming federal regulators for the crisis in the subprime mortgage market.

Dodd described rising interest rates combined with the Federal Reserves’ tolerance for lax lending standards as "a perfect storm that has contributed to the hardship and heartache that millions of home owners now face."

I guess.

Add the Federal Reserve, Fannie Mae, and Freddie Mac to the list of culprits, along with lenders ... and borrowers.

Source: Senator Blames Federal Regulators for Subprime Woes - By Kevin Drawbaugh, Reuters News, by way of Realtor.org

Senator Dodd had a lot more to say, including a suggestion that the government should consider providing aid to about 2.2 million subprime mortgage borrowers who are at risk of defaulting and losing their homes.

Others aren't so sure.

Federal aid "would come at a cost,' said Douglas Duncan, chief economist at the Mortgage Bankers Association. "It has to be paid for and the question is would the 34 percent of homeowners who have no mortgage be willing to pay taxes to support the bailout of people who traditionally have not managed credit well?'

My answer: No.

Source: Senate Weighs Aid to 2.2 Million Subprime Borrowers - By James Tyson, Bloomberg.com