“We remain opposed to bankruptcy cram down legislation because of the destabilizing effect it will have on an already turbulent mortgage market.  We were surprised by the suddenness of the announcement and are still evaluating the proposed deal, but we believe there remain a number of crucial issues that need to be addressed.

“Any agreement needs to protect FHA and VA guarantee programs.  Today’s announced agreement does nothing to solve that important issue.  In addition we believe that this legislation ought to be limited only to subprime loans.  We would also want to see a sunset date that limits how long judges would be granted this extraordinary power. 

“This legislation would have a significant effect on the mortgage markets and we believe it ought to be subject to the normal legislative process, including hearings and markup.  We look forward to working with our members and Congress to address these and other issues.”  

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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.