MBA's Quinn Commends Introduction of Mortgage Relief Bill

Kieran P. Quinn, CMB, Chairman of the Mortgage Bankers Association today welcomed Congressman Barney Frank's proposal for legislation to help stabilize the mortgage and housing markets and assist borrowers. Legislative language was introduced today, though Chairman Frank warned that it could change before the bill was officially introduced.

Quinn issued the following statement:

'The current situation in the mortgage and housing market needs to be addressed and borrowers need to be helped. By introducing this bill, Chairman Frank has offered a constructive proposal that will help start what is sure to be a vigorous dialog about how best to help borrowers and stabilize the market.

'MBA is still analyzing the proposal based on a set of principles we believe any such proposal must include. Among those principles are that the program should be voluntary, not increase costs on future borrowers, be available only to owner-occupants and not assist borrowers who engaged in fraud.

'MBA also believes that any such plan should not be a government bailout and that lenders should assume their share of the loss. It is also crucial that any plan ought to include protection for servicers and trustees from the risk for litigation in connection with the provisions of any applicable pooling and servicing agreements.

'We look forward to working with Chairman Frank and other policy makers to help find solutions to the current market and borrower troubles.'