“The mortgage industry has been extremely innovative in developing products and tools that create homeownership opportunities, expand affordability and facilitate greater consumer choice that has helped our country reach a near 70 percent homeownership rate,” said Mr. Duncan.  “MBA is concerned that approaches such as rigid, new underwriting standards and the imposition of suitability requirements will rollback hard fought homeownership and fair lending gains and will stifle innovation and take good financing options out of the hands homeowners, limiting consumer choice.  The effect will be to reduce available and affordable credit, undermining our mutual goal of putting Americans in homes and keeping them there.  The mortgage market has performed well for consumers and for the larger economy and any policy that is not based on sound facts has the potential to undermine these benefits.”

Mr. Duncan also addressed concerns about the connection between industry practices and failed loans.

“Abusive lending is a stain on the mortgage industry, and MBA is committed to finding solutions to help weed out bad actors,” said Mr. Duncan.  “Nationally representative data show that current foreclosure rates are within normal historical ranges and that the incident of foreclosure is largely driven by loss of employment, illness and other life events, and not by specific mortgage products.  Nobody wins when homes are lost to foreclosure.  The process can have a devastating affect on consumers and communities as well as lenders and their investors.”

Duncan shared MBA’s perspective on what steps Congress can take to help protect consumers from abusive lending practices.

“First, make financial education a priority for all Americans, empowering them with knowledge and giving consumers the tools to make good decisions,” continued Duncan.  “Second, simplify the mortgage process and make it more transparent so consumers can better understand the details of the transaction and so they can more easily shop for their loan from different lenders.  And finally, Congress should pass a strong and balanced uniform national standard for home loan lending with increased consumer protections.”               

The entire testimony can be found at www.mortgagebankers.org.

A copy of MBA’s “Facts About Mortgage Lending” is also attached.

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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 370,000 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.