WASHINGTON, D.C. (Aug. 28, 2013) – David H. Stevens,
President and CEO of the Mortgage Bankers Association (MBA), issued the below
statement following today's re-proposal of the risk retention rule.
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| David H. Stevens |
“The re-proposed rule is a reflection of how well the notice
and comment process can work.
Regulators proposed a rule and received a unanimous reaction from
diverse groups within housing and real estate finance that the proposal would
have unduly constrained the
availability of mortgage credit for many borrowers.
“As a result the regulators recognized the implications for
consumers and the broad mortgage markets, and decided to alter and then
re-propose a much better rule.
“We are extremely pleased with the proposal that aligns the
Qualified Mortgage (QM) and Qualified Residential Mortgage (QRM) definitions
for risk retention purposes.
“It is important to note that the risk retention rule
impacts other asset classes including commercial mortgage-backed securities
(CMBS). In that vein, MBA is gratified that the Premium Capture Cash Reserve
Account (PCCRA) proposal was eliminated from the re-proposal.
"The PCCRA would
have required all issuer profits to be placed in a first-loss position, which
would have eliminated the financial incentive for issuing CMBS.
“MBA applauds the regulators for carefully balancing the
competing policy objectives in this rule, and looks forward to continuing to
work with them to ensure that other portions of this rule are strengthened in
order to bolster the real estate markets and also protect borrowers and
investors.”
For a complete copy of the company’s news release, please
contact:
Rob Van Raaphorst
(202) 557-2799
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