MBA Hails Passage of Economic Stabilization Package, Tax Extenders

The Mortgage Bankers Association (MBA) today applauded the House of Representatives' passage of H.R. 1424, the Emergency Economic Stabilization Act of 2008. The bill, which establishes a program at the Treasury Department to purchase distressed mortgage-related assets, also includes the extension of several tax provisions that will help steady the American economy.

'The ongoing credit crunch has severely impacted the ability of individuals and businesses of all sizes to borrow, and has threatened to slow down the entire U.S. economy,' said John A. Courson, MBA's Chief Operating Officer. 'We very much appreciate the hard work and long hours that Congressional and Administration negotiators have put in over the last several weeks and look forward to the quick implementation of the program. This will enable financial institutions to offer credit so individuals can purchase homes and other items and businesses can continue to operate and grow.'

The bill will allow the Treasury to purchase up to $700 billion in distressed mortgage related assets from financial institutions in an effort to increase liquidity and restart the seized credit markets. The true long