WASHINGTON, D.C. – May 13, 2011 – (RealEstateRama) — The Mortgage Bankers Association (MBA) today released a new white paper which provides background information and an environmental scan of the events leading up to the current foreclosure crisis and examines some of the myths surrounding servicer incentives in the loss mitigation process. The white paper is being released in conjunction with MBA’s President & CEO David H. Stevens’ testimony before the Senate Committee on Banking Housing and Urban Affairs Subcommittee on Housing, Transportation and Community Development on “The Need for National Mortgage Servicing Standards.”
The white paper is the result of work by the Council on Residential Mortgage Servicing for the 21st Century, a 25-member task force representing MBA’s diverse membership base.
“Our Council includes industry professionals who have a broad range of expertise in all areas of mortgage loan administration. We have expended significant time and effort analyzing current state and the ongoing evolution of residential mortgage servicing,” said Debra W. Still, CMB, President and Chief Executive Officer of Pulte Mortgage LLC of Englewood, CO and MBA’s Vice Chairman. “We have identified issues that challenge the industry and these will be the basis for MBA’s recommendations to address the needs of delinquent borrowers.”
On January 19, 2011, the Council hosted the Summit on Residential Mortgage Servicing for the 21st Century. The meeting brought together industry leaders, consumer advocates, economists, academics and policymakers to take a detailed look at the issues that have vexed the industry and sought to identify the essential building blocks for the future of loan servicing.
The white paper provides information on what a servicer does; how a servicer is compensated; and the perspectives of consumers, regulators, and the legal community with regard to servicer performance in the current crisis. It also identifies issues that need further examination and examines trends in servicer compensation and expenses.
“The housing crisis has caused us to question the way we do things. Acknowledging our mistakes is the first step in rebuilding trust in our industry and our actions,” said Stevens. “MBA, and its members, are committed to being leaders in affecting the necessary changes to the residential loan servicing paradigm. We have invited, and will continue to welcome, all interested stakeholders to join us in this effort.”
For more information on the Council or any of its reports or publications, click here.
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA’s Web site: www.mortgagebankers.org.