MBA Reacts to Obama Administration's Regulatory Reform Proposal

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(News Source: Mortgage Bankers Association)
 
(WASHINGTON, DC) -- The Mortgage Bankers Association issued the following reaction to the regulatory reform proposal unveiled today by President Obama and his economic team.
 
Said John A. Courson, MBA's President and CEO:
 
"We welcome the coming debate over the future regulation of the financial services industry.  As the past several years have shown, oversight of financial firms can and should be improved in order to better protect consumers and make sure the troubles in the financial sector are not repeated." 
 
"As the discussion around regulatory modernization moves forward, we will work with Congress and the administration to ensure that the new regulatory structure does not create conflicting and contradictory regulatory regimes that further confuse both lenders and borrowers. We want to ensure that the new structure does not stifle innovation or increase costs for consumers.  And we will continue to argue for one preemptive set of mortgage regulations throughout the country to replace the current patchwork of state and local laws."     
 
Added MBA Chairman David G. Kittle, CMB
 
"The plan the President unveiled today is a comprehensive proposal that provides a good launching point for the coming debate.  We agree with the administration that a better regulatory structure is needed for the mortgage industry, which is why earlier this year we asked Congress to consider the Mortgage Improvement and Regulation Act (MIRA) that would, among other things, create a new regulator for non-depository independent mortgage banks and mortgage brokers, funded by the mortgage industry itself.
 
"We will continue to examine the details of this proposal and offer our insights into how the different pieces of the proposal will affect the industry and its customers.  For example, we will continue to work with policymakers on the idea that all participants in the mortgage origination process should have a financial interest in making sure a borrower has a sustainable mortgage payment, without putting certain business models at a competitive disadvantage."

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