FEBRUARY 21, 1997 EDITION OF FAST FACTS

FEBRUARY 21, 1997 EDITION OF FAST FACTS

LAW FIRM ASSISTANCE. MBA has retained two law firms to assist the industry in defending against class action law suits claiming that yield spread premiums violate Section 8 of RESPA. The scope of the law firms' effort for MBA would be to provide as much of the defense for these cases as can be done consistent with MBA's tax-exempt status and with the canons of ethics of the bar. The lead firm is Morrison & Forester, with offices in San Francisco, Washington, New York, Los Angeles and other cities. It has extensive experience in developing and coordinating multiple defendant nationwide litigation. The designated attorneys for MBA members to contact are Martha Ellett in Washington at (202) 463-1011 and Michael Agoglia in San Francisco at (415) 268-6057.

Morrison & Forester will be supported by Briggs & Morgan, located in Minneapolis. This firm has an extensive and successful record of defending mortgage banking companies against class actions. It will bring this expertise to the project. Contact Bill Cumberland at (202) 861-6516.

MEETING WITH ANDREW CUOMO. MBA President Ron McCord met last Friday with new HUD Secretary Andrew Cuomo. Their discussion centered on the current class action RESPA lawsuits and the multifamily/Section 8 funding shortfall. With regard to RESPA, Secretary Cuomo assured McCord that he was familiar with the issue. He has asked his staff to conduct some additional analysis but he assured us that in the weeks ahead HUD will address the issue. The Secretary indicated that the expiration of Section 8 contracts is the largest problem facing the Department. The Department is working on a plan to address this issue, which he hopes to announce shortly. Contact Bob O'Toole at (202) 861-6534.

PMI DISCLOSURE AND CANCELLATION. On February 25, MBA President Ron McCord will testify at Senate Banking Committee hearings on S 318, a bill introduced by the Committee Chairman Alfonse D'Amato (R-NY). The D'Amato bill would require mortgage servicers to notify borrowers of their rights, as well as the conditions, under which the borrowers may cancel their mortgage insurance when the borrower has paid down the loan below 80 percent of the original loan amount. Under the bill, servicers could seek reimbursement from mortgage insurance companies for the costs associated with providing consumers the required information. Similar legislation, HR607, has been introduced in the House by Representative Jim Hansen (R-UT), but no action has been scheduled. Contact Mike Ferrell at (202) 861-6509.

CONSULTANT EVALUATION SURVEY. The MBA has retained the STRATMOR Group and Schlegel & Associates to jointly conduct a strategic review of MBA's activities and operations. We would like your participation in this review. On the web site we have made available an online survey for you to complete. From our home page (http://) please click on the link "Take our online survey". There are a series of about 25 questions that deal with many of the aspects of MBA's business and our interaction with members. The survey will be available on the web site until Friday, March 7. For questions about the web site please contact Doug Compton at (doug_compton@mbaa.org) or (202) 861-6531. If you have questions on the survey, contact Cheryl Malloy at (202) 861-6502.

LEADERSHIP CONFERENCE REMINDER. All members planning to attend the MBA Leadership Conference March 4-6, 1997, in Washington, D.C. are reminded to register for the conference and to make hotel reservations at the Washington Court Hotel (202) 628-2100. Contact Mike Ferrell at (202) 861-6509.