Private, Public Sector Construction Activity Continue on Opposite Tracks as Private Activity is Up 11.5 Percent for the Year While Public Activity Declined 3.2 Percent Since March 2011 Amid Tight Budgets, End of Stimulus

Private, Public Sector Construction Activity Continue on Opposite Tracks as Private Activity is Up 11.5 Percent for the Year While Public Activity Declined 3.2 Percent Since March 2011 Amid Tight Budgets, End of Stimulus

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

Contact:
ABA Media Contact: Ryan Zagone
(202) 663-5470
Email:
Follow us on Twitter: @ABABankingNews

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Founded in 1875 and based in Washington, DC, the American Bankers Association (ABA) brings together banks of all sizes and charters into one association. ABA works to enhance the competitiveness of the nation's banking industry and strengthen America's economy and communities. Its members – the majority of which are banks with less than $125 million in assets – represent over 95 percent of the industry's $13.6 trillion in assets and employ over 2 million men and women.

American Bankers Association
1120 Connecticut Avenue, N.W.
Washington, DC 20036

Toll free: 1-800-BANKERS

Media Contact:
Jim Eberle
Phone: (202) 663-5477

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