“While we must ask what lessons we should learn from our mistakes, it is equally important for those in positions of authority to help current home owners stay in their homes,” said Robbins.  “Working together, I suggest we must accomplish three things.  We must stabilize the subprime mortgage credit system; provide assistance for homeowners facing foreclosure; and finally prevent this from ever occurring again.  Sound perspective and a prudent regulatory hand will sooth investors, calm editorial writers and help consumers.”

“For subprime borrowers who are facing foreclosure, industry and policymakers must partner to help provide options so that as many as possible are able to remain in their home,” continued Robbins.  “Chairman Dodd recently called for a summit of all parties to address this problem.  MBA embraces that idea.  And we at MBA strongly encourage all borrowers that find themselves unable to continue making payments to contact their lender immediately.  Lenders lose money in foreclosure and have a strong desire to make any number of arrangements that will allow a borrower to start making payments again and keep his or her home.

Lawmakers, regulators and industry must work to ensure that this situation does not occur in the future.  An absence of pricing transparency coupled with a daunting and complicated closing process has permitted certain actors to prey on the unsophisticated.  The mortgage market is desperate for a rewrite of the nation’s settlement laws and a strong uniform lending standard to trap predators and bring them to justice.”

In his statement, Robbins also acknowledged that some lenders had made mistakes providing loans to some subprime borrowers.
 
“What I have seen of late troubles me deeply.  Responsible lenders only extend credit to borrowers who are willing and able to make mortgage payments.  They do not trick borrowers into loans that are unsustainable. And they do not hold out something that is only a mirage of the American Dream. 
Yet bad loans were made.  They were not made responsibly or with the best interest of consumers in mind.”

Robbins’ full testimony can be found at www.mortgagebankers.org.

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site:  www.mortgagebankers.org.