MBA's Courson and Kittle react to mortgage cramdown dealMortgagePress.comMBA, John A. Courson, David G. Kittle, FHA, VA
John A. Courson, president and CEO and David G. Kittle, CMB,
chairman of the Mortgage Bankers Association (MBA) has issued the
following statement on a proposed compromise to allow bankruptcy
judges to alter mortgage contracts. "We remain opposed to
bankruptcy cram down legislation because of the destabilizing
effect it will have on an already turbulent mortgage market. We
were surprised by the suddenness of the announcement and are still
evaluating the proposed deal, but we believe there remain a number
of crucial issues that need to be addressed.
"Any agreement needs to protect FHA and VA guarantee programs.
Today's announced agreement does nothing to solve that important
issue. In addition we believe that this legislation ought to be
limited only to subprime loans. We would also want to see a sunset
date that limits how long judges would be granted this
"This legislation would have a significant effect on the
mortgage markets and we believe it ought to be subject to the
normal legislative process, including hearings and markup. We look
forward to working with our members and Congress to address these
and other issues."
For more information, visit www.mortgagebankers.org.