MBA reacts to public-private investment program MortgagePress.comJohn A. Courson, Mortgage Bankers Association, distressed assets, Mortgage-Backed Securities
John A. Courson, president and CEO of the Mortgage Bankers
Association (MBA), has issued the following statement after
announcement of the details of the administration's public-private
program to purchase distressed assets from financial
institutions.
"The private sector will play an important role in helping
stabilize the financial system, and the details unveiled this
morning are a step in the right direction. The public/private
approach will leverage the government guarantee and private sector
innovation to provide an outlet for financial institutions to sell
legacy loans and legacy securities that are currently clogging
their books. This will, in turn, inject liquidity into the system
and hopefully unlock the credit markets.
"We are extremely pleased to see that program will allow for the
inclusion of Commercial Mortgage-Backed Securities (CMBS). The
commercial real estate market has been hit hard by the lack of
available liquidity and the credit crunch. Allowing for the
inclusion of CMBS in TALF should help relieve the pressure in the
commercial real estate market.
"We look forward to working with Treasury, the FDIC and private
sector participants to help implement a program that will have the
greatest possible impact to resolve the credit crunch and help
restart lending."
For more information, visit www.mortgagebankers.org.
