Groups sends letter to Congress on subprime issues

Five financial organizations — American Securitization Forum, Financial Services Roundtable, HPC, Mortgage Bankers Association, and Securities Industry and Financial Markets Association — sent a letter to Senate Banking Committee Chair Christopher Dodd, House Financial Services Committee Chair Barney Frank and ranking members Spencer Bachus and Richard Shelby outlining their collective review on market and regulatory responses in addressing subprime mortgage lending issues. The letter stated that the interests of the mortgage market are aligned with borrowers. The organizations believe that policy changes should be made to balance consumer protection with the preservation of mortgage credit to qualified borrowers. The letter shows the organizations’ support of clearer consumer disclosure, education and counseling and notes the restrictions on loan products and mandated loan modifications, and also mentions that assignee liability could result in reduced availability of mortgage credit. The organizations want to ensure that borrowers understand their mortgage loans and financing options to keep them in their homes.