Refinancing borrowers shun ARM loans in Q4 of 2008
MBA comments on "Making Home Affordable" programMortgagePress.comMBA, Making Home Affordable, Barack Obama, John A. Courson, refinance, loan modification John A. Courson, president and CEO of the Mortgage Bankers Association, has issued the following statement after the release of the details of the "Making Home Affordable" refinance and loan modification programs. "We have been advocating for one unified approach to help modify or refinance delinquent and underwater loans and thus we think this program will undoubtedly help servicers keep more at-risk borrowers in their homes, which is a crucial step to helping stabilize the mortgage and housing markets. "We are pleased to see that the $729,750 limit applies across the country, rather than only in high cost areas, because it will allow us to help more borrowers, especially those who have been hardest by the current crisis. We think the refinance program could be even more effective if the 105% LTV limit were raised. It would allow the GSEs to help even more borrowers without any additional risk since the loans are already on their books. "In addition we continue to believe that we can help even more borrowers - mostly those whose loans have been sold in private label MBS--if servicers are provided safe harbors to protect them from investor lawsuits when they modify loans. "Further, a standardized net present value (NPV) calculation could streamline the process and allow servicers to better help borrowers and we look forward to working with Treasury as it continues to develop its NPV standard. Likewise, we also want to work with the administration and Congress to enable servicers of FHA, VA and RHS loans to participate in the program." For more information, visit www.mortgagebankers.org.