Securities Association Head Warns of Economic Disaster of Nationwide Foreclosure Freeze

The Securities Industry and Financial Markets Association (SIFMA) has issued the following statement from Tim Ryan, the association's president and chief executive officer, on the foreclosure moratorium related to issues in foreclosure processing: “It would be catastrophic to impose a system-wide moratorium on all foreclosures and such actions could do damage to the housing market and the economy. "It must be recognized that the mortgage market, investors and the health of the economy are all inter-related. Investors in the housing market—including American workers with pension funds, 401k plans, and mutual funds—would unjustly suffer losses in their savings from these actions. Increased uncertainty in the securitization market would further constrain consumer credit and spending, dampening our already unhealthy economic situation. "If mistakes have been made in relation to foreclosure processing, SIFMA firmly believes such mistakes should be corrected. It is imperative, however, that care be taken in addressing these issues to ensure that no unnecessary damage is done to an already weak housing market and, in turn, that there is no further negative impact on the economy.” For more information, visit www.sifma.org.