Washington, DC (December 6, 2007) - Kieran P. Quinn, CMB, Chairman of the Mortgage Bankers Association (MBA) today applauded an agreement by mortgage loan servicers and investors to streamline the process for modifying the loans of certain homeowners with subprime hybrid adjustable rate mortgages. The agreement was announced today by President Bush, Treasury Secretary Paulson and HUD Secretary Jackson, along with representatives for the loan servicing and investment community.
Mr. Quinn issued the following statement:
"Today's announcement will help stem the rising tide of foreclosures by offering a streamlined process that could help hundreds of thousands of at risk homeowners. By providing clear and concise criteria that will help facilitate loan modifications for borrowers who meet the guidelines, this plan will not only help those borrowers who qualify but will also free resources for servicers to work with other borrowers who may also benefit from a loan modification, repayment plan, forbearance or the bevy of other tools that servicers have to keep troubled borrowers in their homes.
I want to thank President Bush and Secretaries Paulson and Jackson for their leadership in bringing all the relevant players to the table and facilitating a private-sector approach, rather than a government-mandated one. When a borrower loses their home, everyone loses - the borrower, the surrounding community and the lender, who can lose up to $50,000 for each loan that goes through the foreclosure process."
Quinn's statement came under the backdrop of an MBA fly-in that brought together 15 of the 25 largest mortgage loan servicers in the United States to Washington, DC for a servicer summit. The fly-in provided the opportunity for servicers to discuss the current issues facing the loan servicing industry in light of the recent increase in loan delinquencies and home foreclosures. The participants shared their view of the current situation, as well as best practices and new programs to help avoid foreclosure and keep more at risk borrowers in their homes.
MBA is a partner in the HOPE NOW alliance, a partnership among counselors, mortgage market participants, and mortgage servicers to create a unified, coordinated plan to reach and help as many homeowners as possible. The members of this alliance recognize that by working together, they will be more effective than by working independently.