| Title: | MBA Reacts to Fed's Proposed Rule on HOEPA |
| Source: | MBA |
| Date: | 12/18/2007 |
WASHINGTON, DC (December 18, 2007) - Kieran P. Quinn, CMB, Chairman of the Mortgage Bankers Association (MBA) issued this statement today following the Federal
Reserve Board's proposed changes to Regulation Z (Truth in Lending) under the Home Ownership and Equity Protection Act (HOEPA).
The proposed rules would restrict certain lending practices and would also require certain mortgage disclosures to be provided
earlier in the mortgage transaction.
"The Board's proposed rule announced today strives to strike the balance between ridding the marketplace of abusive lending
practices, while still preserving credit opportunities for worthy borrowers. This is a fine line to walk, and it is obvious
that the officials at the Fed put a lot of thought into this proposed rule.
MBA has long supported better and more timely disclosures to consumers and we applaud the Board for those aspects of the proposals.
Well conceived disclosures empower consumers to make the best choices and foster market competition to provide consumers the
best products at the best prices. MBA also has long supported uniform standards to end lending abuses and we appreciate
the Board's steps in that direction.
Initially, we are concerned, however, that some of the restrictions in the proposals may unnecessarily limit the credit options
available to borrowers who should otherwise qualify for homeownership.
Notwithstanding these concerns, we again applaud the Board's efforts. MBA is committed to thoroughly reviewing the proposed
rule and offering comments within the ninety-day public comment period."
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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry
that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the
association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand
homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and
fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety
of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies,
mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending
field. For additional information, visit MBA's Web site: www.mortgagebankers.org.