WASHINGTON, March 4 (Xinhua) -- U.S. Federal Reserve Chairman Ben Bernanke Tuesday called for additional actions to reduce preventable mortgage foreclosures, so as to prevent more homeowners from losing their houses.

U.S. Federal Reserve Board Chairman Ben Bernanke listens to a question during a U.S. Senate Banking, Housing and Urban Affairs committee hearing on Capitol Hill in Washington, February 14, 2008. (Xinhua/Reuters File Photo) Photo Gallery>>>

    "Efforts by both government and private-sector entities to reduce unnecessary foreclosure are helping, but more can, and should, be done," Bernanke said in a speech to a banking group in Florida. A copy of his speech was released on the Fed's website.

    Even with some relief efforts under way by industry and government, late payments on home mortgages and foreclosures "likely will continue to rise for a while longer," said the Fed chief.

    "This situation calls for a vigorous response," he added.

    Bernanke said measures to reduce preventable foreclosures "could help not only stressed borrowers but also their communities and, indeed, the broader economy."

    One of the suggestions he made was for mortgage and other financial companies to reduce the amount of the loan to provide relief to a struggling owner.

    "Principal reductions that restore some equity for the homeowner may be a relatively more effective means of avoiding delinquency and foreclosure," Bernanke said.

    But he acknowledged that the idea might be a tough sell to lenders, who he said are reluctant to write down principal.

    Bernanke urged Congress to give the Federal Housing Administration (FHA) the flexibility to offer refinancing products to more borrowers.

    "I am sure that the FHA and the Department of Housing and Urban Development, given the appropriate powers by the Congress, will make every effort to expand their operations and to help improve the functioning of the market for home-purchase mortgages," he said.

    He also urged the government-sponsored enterprises to take the steps necessary to allow more potential homebuyers access to mortgage credit at reasonable terms.

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