The US House Financial Services Committee asked the Federal Reserve and the US Treasury Department to testify at a hearing on September 5 that will examine the current crises in the credit and mortgage market, Chairman Barney Frank, a Massachusetts Democrat, said on Monday.
The hearing will also examine the implications for the US consumer and the economy, Frank said in a statement. The committee will hear from witnesses from the US Treasury Department and the Federal Reserve, as well as from the mortgage banking industry, he said.
The hearing comes as markets around the world have weathered steep losses due to problems in the US subprime mortgage sector that have spread to global credit markets. The subprime loans, which were made to borrowers with poor credit histories, have roiled the mortgage industry as higher interest rates and other issues have led to delinquencies and defaults.