"Allowing judges to retroactively modify borrowers' mortgage balances will destabilize a mortgage market that desperately needs stability right now. 

"Treasury officials today reported that the Obama administration's Home Affordable Modification Program - HAMP - is on target to reach its stated goal of 500,000 trial loan modifications by November 1.  We ought to let that program, still in its early stages, continue to take hold, rather than rushing to try to pass a measure that will do more harm than good.

"We hope that proponents of cram down will recognize the successes that the industry is making through HAMP and other means to help keep borrowers in their homes.  Loan modifications cannot happen overnight.  But as today's report from Treasury shows, servicers are making significant progress."         

###

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 2,200 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.