WASHINGTON, D.C. (February 14, 2008) – Kieran P. Quinn, CMB, Chairman of the Mortgage Bankers Association (MBA) expressed reservations about several of the provisions contained in the Foreclosure Prevention Act of 2008, introduced in the Senate yesterday.Mr. Quinn issued the following statement:
“We appreciate the Senators’ efforts to try to help stabilize the mortgage market and help those Americans who are at risk of facing foreclosure. That is why we were so supportive of efforts to temporarily increase the FHA and GSE loan limits. That is why we have been working with members of the House and Senate to get an FHA modernization bill to the President’s desk.
And there is much in this bill to applaud. We have long supported and advocated for expansion of mortgage revenue bonds to help at risk borrowers. We strongly support more funding for counseling. And we support better disclosures at loan origination – though we do have some concerns about the timing of disclosures contained in the bill.
However, by including language to reform bankruptcy and allow judges to modify mortgage contracts, the bill threatens to hurt those it is designed to help. Bankruptcy reform will increase the cost of mortgage credit for all borrowers at a time when we ought to be making it easier, not harder, to get credit. As long as this consumer-unfriendly provision is included, we cannot support the package as a whole.”
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 500,000 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 3,000 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.