Skip to main content

MBA reacts to Obama Administration's programs for unemployed, underwater borrowers

NationalMortgageProfessional.com
Mar 26, 2010

John A. Courson, president and chief executive officer of the Mortgage Bankers Association (MBA), has issued the following statement reacting to new plans by the Obama Administration to help borrowers who are underwater on their mortgages or have suffered a significant reduction of income that imperils their ability to pay their mortgage. "As the causes of the problems in the housing market have evolved, it is only right that we should find new workable solutions to help troubled borrowers. As the industry worked its way through the problem of sub-prime borrowers who could no longer afford the mortgage they had taken, it became apparent that the emerging challenges lay with borrowers who had lost their jobs or seen a significant drop in household income. "Last fall, MBA brought together a task force of its members to look at ways to help those borrowers. In February, we presented a proposal to the administration that would enable loan servicers to offer forbearance as part of HAMP, reducing payments to an affordable level for up to nine months for those borrowers who had suffered a reduction in household income. We are pleased to see that the administration's plan incorporates some of the components of that proposal. "Expanding refinance opportunities for FHA borrowers and creating a HAMP component encouraging the reduction of mortgage principal, gives servicers yet more tools they can use to help underwater borrowers. As it relates to the program to offer incentives for principal write downs, each servicer will need to determine whether this is the best approach to help the individual borrower, keeping in mind any contractual restrictions or requirements from the mortgage investor." For more information, visit www.mortgagebankers.org.  
Published
Mar 26, 2010
The Fed: Tapering Could Start In November

Open Market Committee also expects to raise federal funds rate a year earlier, in 2022

Regulation and Compliance
Sep 23, 2021
HUD, FHFA: Freddie Mac Can Buy Group Home-Backed Loans

Agencies issue rule clarification after a mortgage lender refused to lend to an individual renting to a group home

Regulation and Compliance
Sep 23, 2021
Fannie Mae Plans To Restart Credit Risk Transfers In 2021

Paused Since March 2020, New CRT Transactions To Begin In October

Regulation and Compliance
Sep 21, 2021
Biden Nominates McCargo To Lead Ginnie Mae

Currently Serves As Senior Advisor For Housing Finance At HUD

Regulation and Compliance
Sep 14, 2021
OCC Plans To Rescind 2020 CRA Rule

The OCC formally issued a proposal to rescind a controversial rule within the Community Reinvestment Act (CRA) that was published in June 2020.

Regulation and Compliance
Sep 10, 2021
CSBS Changes Servicer Liquidity Policy

CSBS And MBA Encourage States To Adopt Consistently

Regulation and Compliance
Sep 08, 2021