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
"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.