MBA's Courson comments on draft legislative language on federal plan to purchase mortgage assetsMortgagePress.comMBA, John Courson, Mortgage Bankers Association, mortgage assets
John A. Courson, Chief Operating Officer of the Mortgage Bankers
Association has issued the following statement in reaction to draft
legislative language that is circulating on the federal plan to
purchase distressed mortgage assets.
"Recognizing that none of this is finished product and that
there are important oversight issues that should be addressed, we
are nonetheless disappointed that some legislators have decided
this is an opportunity to tack on their favorite pet items. The
markets need this facility and they need it fast.
"Resurrecting bankruptcy cram down during this current crisis
would be wholly unproductive and, in fact, runs counter to the
bi-partisan efforts to restore liquidity to the global capital
markets. In fact, it is really irrelevant to the current
discussion. Once the fund purchases the distressed mortgages, it
doesn't need a bankruptcy judge to rewrite the loan balance. It can
write down the loan balance itself, without Congress giving
bankruptcy judges that authority.
"This is a time that requires strong leadership. It is not the
time to revisit ancillary proposals that have been debated and
defeated, like bankruptcy cram down. We would encourage both
parties and both chambers to set aside the issues that will only
bog down the process and pass a clean bill that will stabilize the
markets and help keep families in their homes without permanently
damaging the real estate finance system."
For more information, visit www.mortgagebankers.org.