WASHINGTON, D.C. - Kieran P. Quinn, CMB, Chairman of the Mortgage Bankers Association expressed reservations about several of the provisions contained in the Foreclosure Prevention Act of 2008, introduced in the Senate.
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."
