MBA Welcomes Senate Rejection of Bankruptcy Measure
Mar 4, 2008
WASHINGTON, D.C. (February 28, 2008) – David G. Kittle, CMB, Chairman-elect of the Mortgage Bankers Association (MBA) today applauded the U.S. Senate’s vote to prevent debate from proceeding on a bill that would reform the bankruptcy code and increase costs for consumers to secure mortgages.
Kittle issued the following statement:
“Bankruptcy is not the answer for borrowers who are having a difficult time making their mortgage payments and it is gratifying to see enough Senators recognize this fact. While there were some provisions of the bill that we would like to see enacted into law, like additional resources for housing counselors and increased help for borrowers trying to refinance out of troubled loans, the overwhelming negative effect of the bankruptcy provision outweighed those positive measures.
“There is plenty that can be done to help stabilize the mortgage market, like modernizing the FHA and many of the provisions in today’s bill, on top of the ongoing industry efforts under the HOPE NOW alliance. We look forward to working with Senators to allow state housing agencies to use mortgage revenue bonds to help borrowers refinance troubled loans, as well as on FHA modernization and GSE oversight reform.”
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