Quinn Encouraged by Recommendations of Presidential Working Group on Financial Markets

Kieran P. Quinn, CMB, Chairman of the Mortgage Bankers Association today welcomed the recommendations of the President's Working Group (PWG) on Financial Markets. The recommendations were released by Treasury Secretary Paulson in a speech this morning at the National Press Club.

Quinn issued the following statement:

'When the credit markets seized in August, President Bush acted quickly to convene this group, led by Secretary Paulson, to look at the issues that were causing market turmoil, how to fix them and how to prevent them from occurring again. The group's recommendations, and the context in which the Secretary spoke about them, are consistent with MBA's best thinking in a number of ways.

'We agree with Treasury's recommendation that mortgage brokers should be held to stronger licensing and enforcement standards and that stricter safeguards against mortgage fraud should be put in place.

'Furthermore, we agree that borrower disclosures, including a better disclosure of mortgage broker compensation, are critical and we will continue to work with policymakers to streamline, improve and simplify disclosures, because simply adding more to the currently unmanageable pile of borrower paperwork will only further confuse borrowers' understanding of loan products.

'The PWG makes a number of recommendations regarding information transparency, due diligence and risk management as they relate to credit rating agencies, securities issuers and investors. MBA appreciates Treasury's leadership in this area, supports the shared goal of improving liquidity in the credit markets, and looks forward to contributing to ongoing discussions and reviewing forthcoming recommendations in these areas.'