MBA's Quinn Reacts to Release of Final HOEPA Rule

Kieran P. Quinn, CMB, Chairman of the Mortgage Bankers Association (MBA) today commended the Federal Reserve's Board of Governors for approving the Board's final rules under the Home Ownership and Equity Protection Act (HOEPA).

Quinn issued the following statement:

'MBA applauds the Federal Reserve for stepping up to the plate and providing consumers with comprehensive rules to guide lenders and protect consumers in the mortgage process. These rules are a thoughtful effort to tackle difficult concerns and attempt to balance the need for new standards against the need for available, relatively low cost mortgage credit.

'MBA is carefully reviewing aspects of the rules including the new standards for determining which loans are treated as subprime, demanding further protection. MBA strongly believes that it is essential for credit not to be unduly restricted.

'Notably the Board withdrew, for further consideration, its proposal to improve disclosure of mortgage broker compensation. We encourage the Board to work with the Department of Housing and Urban Development (HUD), which has also been working on this issue, so that the Government's approach to this problem is coordinated in order to better protect American consumers.'