MBA`s Quinn:  H.R. 3915 Will Hurt More Consumers Than It Will Help

  Kieran P. Quinn, CMB, Chairman of the Mortgage Bankers Association (MBA) today issued the following statement, following passage in the House of Representatives of H.R. 3915, the Mortgage Reform and Anti-Predatory Lending Act of 2007.  The bill passed the House by a vote of 291-127.

,Have no doubt, this bill will limit credit availability and options for thousands of Americans who want to grab their share of the American dream of homeownership.  It will eliminate tools that millions of Americans have used to become successful long-term homeowners. 

MBA has worked tirelessly with Chairman Frank and other House members to try and address our concerns with the bill and make it a better overall product.  Much has changed to improve the bill, including an amendment that passed today to exempt loans insured by the Federal Housing Administration from the bill.  Unfortunately, many of our key concerns have not been addressed. 

It still allows for the patchwork of state laws that serve to foster confusion for lenders and borrowers alike.  Its rebuttable presumption provisions still expose lenders to unacceptable liability risk.  It creates ambiguity around the legitimate payments between secondary and primary mortgage markets that increase the flow of capital to homeowners.  And the lowered HOEPA triggers will most assuredly eliminate mortgage products that have worked well for many borrowers.

I regret that we cannot support this bill.,           
 
 John Mechem     202) 557-2924   jmechem@mortgagebankers.org