MBA's Quinn Applauds Senate Committee Passage of Housing Legislation

Kieran P. Quinn, CMB, Chairman of the Mortgage Bankers Association (MBA) today hailed the passage of The Federal Housing Finance Regulatory Reform Act of 2008, legislation to help prevent foreclosures and reform oversight of the Government Sponsored Enterprises (GSEs) - Fannie Mae, Freddie Mac and the Federal Home Loan Banks. The bill passed the Senate Committee on Banking, Housing and Urban Affairs by a vote of 19-2.

Quinn issued the following statement:

'Considering the crucial role the GSEs play in providing stability and liquidity to the secondary mortgage market, this is a very important development that has the potential to play a large part in helping the recovery of the housing and mortgage sectors.

'The GSEs need strong regulatory oversight to ensure they operate in a safe and sound manner, consistent with their charters. Further, we believe the GSEs ought to be subject to reasonable affordable housing goals that do not distort the market.

'The proposal to allow FHA to assist troubled borrowers has the potential to help stabilize markets and avoid foreclosures. We want to ensure there are appropriate safeguards to help deserving borrowers while keeping the program voluntary for lenders.

'We look forward to continuing to work with members of the Senate and House to find common ground on a bill that can pass both chambers and that the President can sign as quickly as possible.'