WASHINGTON, DC – May 3, 2012 – (RealEstateRama) — In a letter today, ABA along with the entire industry of mortgage lenders and real estate service providers reiterated our unified position that the CFPB’s Qualified Mortgage rule must include a legal safe harbor with clear standards in order to preserve sustainable mortgage credit.
“A safe harbor with well-defined standards is the only path to ensure that qualified borrowers have access to affordable credit,” said Frank Keating, president and CEO of the American Bankers Association.
“The unpredictability of a rebuttable presumption would create litigation risks too great for most lenders to continue offering mortgages to all qualified borrowers,” said Keating. “This collection of housing groups, realtors, banks and credit unions are gravely concerned that a rebuttable presumption would be damaging to credit availability, communities and the housing market.”
The letter stresses that the structure of the Qualified Mortgage rule is the most critical housing finance issue facing the CFPB today and ramifications of the rule will be felt for years to come.
The American Bankers Association represents banks of all sizes and charters and is the voice for the nation’s $13 trillion banking industry and its two million employees. The majority of ABA’s members are banks with less than $185 million in assets. Learn more at aba.com
ABA Media Contact: Ryan Zagone
Follow us on Twitter: @ABABankingNews