“Recognizing that none of this is finished product and that there are important oversight issues that should be addressed, we are nonetheless disappointed that some legislators have decided this is an opportunity to tack on their favorite pet items.  The markets need this facility and they need it fast. 

“Resurrecting bankruptcy cram down during this current crisis would be wholly unproductive and, in fact, runs counter to the bi-partisan efforts to restore liquidity to the global capital markets.  In fact, it is really irrelevant to the current discussion.  Once the fund purchases the distressed mortgages, it doesn’t need a bankruptcy judge to rewrite the loan balance.  It can write down the loan balance itself, without Congress giving bankruptcy judges that authority. 

“This is a time that requires strong leadership.  It is not the time to revisit ancillary proposals that have been debated and defeated, like bankruptcy cram down.  We would encourage both parties and both chambers to set aside the issues that will only bog down the process and pass a clean bill that will stabilize the markets and help keep families in their homes without permanently damaging the real estate finance system.” 

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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.