Diverse Coalition Releases White Paper Outlining Shared Concerns
WASHINGTON, June 22, 2011 /PRNewswire-USNewswire/ -- The Community Mortgage Banking Project (CMBP), together with a diverse coalition of 44 consumer organizations, civil rights groups, lenders, real estate professionals and insurers, joined with Members of Congress today urging regulators to make important changes to proposed mortgage lending regulations. The Coalition for Sensible Housing Policy released a joint white paper, endorsed by CMBP, detailing how the proposed risk retention regulation, and the failure to properly define exemptions for Qualified Residential Mortgages (QRM), would significantly harm creditworthy borrowers while frustrating the nation's fragile housing recovery.
"I cannot remember a time when so many different organizations concerned about mortgage policy were in such strong agreement," said Glen Corso Managing Director of the Community Mortgage Banking Project. "The message is clear - regulators should go back to the drawing board on the proposed QRM rule. Regulators should focus on good underwriting features, as outlined in the original statute, which are proven to reduce defaults."
"The concept that QRM was to be a small slice or segment of the market is a myth, as the prime Congressional sponsors of the QRM have made repeatedly clear to the regulators," said Corso. "Hopefully, the broad chorus of voices speaking out on this will put the myth to rest once and for all."
Congressional supporters of the Qualified Residential Mortgage (QRM) provision – Senators Mary Landrieu (D-LA), Kay Hagan (D-NC) and Johnny Isakson (R-GA) and Congressmen John Campbell (R-CA) and Brad Sherman (D-CA) – held a press conference today urging regulators to follow the clear legislative intent behind the provision. These policymakers are concerned that aspects of the proposed rule requiring borrowers to have at least a 20 percent down payment or equity to qualify for the exemption go beyond Congressional intent and could hurt, rather than help, the housing recovery. Congress considered and rejected a down payment requirement in the Dodd-Frank legislation because it determined that the cost of excluding responsible middle-class families would exceed the modest improvement in default rates.
For a copy of the white paper, "Proposed Qualified Residential Mortgage Definition Harms Creditworthy Borrowers While Frustrating Housing Recovery," please visit the CMBP web site http://www.communitymb.com.
Community Mortgage Banking Project
Community Mortgage Banking Project is a public policy organization representing the interests of independent mortgage bankers. For decades, the community-based mortgage banker has delivered value and choice to consumers by leveraging local market expertise, quality service, and lower costs for borrowers. The CMBP supports financial market reforms that promote consumer access, borrower and investor transparency, local competition and choice, and a value added mortgage chain. For more information visit http://www.communitymb.com.
Contact: Amanda Deaver
SOURCE Community Mortgage Banking Project