Press Release


Title: MBA Hails Risk Retention Fixes to Regulatory Reform Bill
Source:   MBA
Date: 5/13/2010

WASHINGTON, D.C. (May 13, 2010) – Robert E. Story, Jr., CMB, Chairman of the Mortgage Bankers Association (MBA) issued the following comment today, reacting to passage in the Senate of the Landrieu/Isakson and Crapo Amendments to S. 3217, the Restoring American Financial Stability Act of 2010. 

The Landrieu/Isakson Amendment requires regulators to establish a category of well‐underwritten single family loans that would be exempt from the bill’s risk retention requirements.  The Crapo Amendment directs regulators to consider risk retention forms and requirements in order to ensure that regulators consider the unique nature of the Commercial Mortgage Backed Securities (CMBS) market.

“Mortgage originators already have significant ‘skin in the game’ in the form of representations and warranties that they make to their investors.  Mandating additional one-size-fits-all risk retention would have only further destabilized the already fragile real estate markets.

“We applaud passage of the Crapo Amendment which appropriately recognizes the unique nature of the Commercial Mortgage-backed securities (CMBS) market, provides flexibility with regard to the various forms of retained risk, furthers the goal of aligning interests across transactional parties and is a significant step toward restoring the CMBS markets.

“I want to thank Senators Dodd, Landrieu, Isakson, Hagan, Crapo and others for pushing these bipartisan measures through the Senate, and look forward to working with them and members on both sides of the aisle to ensure these provisions make it through conference.”

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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 2,200 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.mba.org.