Courson: Mortgage Reform Act Does Not Have MBA Support

gh the U.S. House of Representatives passed the Mortgage Reform and Anti-Predatory Lending Act last week by a [link=http://www.mortgageorb.com/e107_plugins/content/content_lt.php?content.3478][u]300 to 114 vote[/u][/link], at least one trade organization says H.R.1728 does not have its support. The Mortgage Bankers Association (MBA), whose lobbying power cannot be denied following the group's strong push against passage of the bankruptcy cramdown amendment, says it applauds the House's effort to address the issues that contributed to problems in the housing and mortgage markets. Nevertheless, MBA President and CEO John Courson says the bill still includes areas of contention. H.R.1728 does not includes a national uniform standard; its safe harbor for qualified mortgages is too narrow; and the bill's risk retention provision, which could require all originators to keep 5% of the risk of certain types of loans on their books, should be relaxed, according to Courson. The MBA says similar legislation is expected to be introduced in the Senate this year. "MBA will continue to call for a preemptive federal standard, expanding the bill's safe harbor for qualified mortgages, and easing the requirement that lenders retain five percent of the credit risk of certain mortgages," according to a letter from Courson to MBA members. SOUR

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