MBA Hails Veto Threat on Senate Housing Bill

David G. Kittle, CMB, Chairman-elect of the Mortgage Bankers Association (MBA) today issued the following statement applauding the Bush Administration's Statement of Administration Policy strongly opposing S. 2636, the Foreclosure Prevention Act of 2008.

Mr. Kittle issued the following statement:

'We fully concur with the Administration's analysis that this bill would very likely prolong the amount of time it would take for the housing market to recover from the current downturn. In particular, the provisions in the bill to amend the bankruptcy code and allow judges to rewrite mortgage contracts will only add to the existing market uncertainty and increase costs on all consumers at a time when exactly the opposite is needed.

'Simply put, this provision is bad public policy and should not be brought to the Senate floor. Instead, the Senate and House should sit down and hammer out an agreement on FHA reform, which is something that could provide a real benefit to a significant number of at risk borrowers.'