TABLE OF CONTENTS

* National MBA Questions Congressional Report on Local Subprime Foreclosures

* Freddie Mac's April 2007 Economic Outlook

*  2007 - 2008 MBBA-NH Proposed Slate of Officers

* MBBA-NH Bylaws are Updated

* Upcoming Annual Dinner Highlights

* Local Mortgage Company Goes Green

* Volunteering for the Ethics/Legislative Committee Keeps You Informed

* Programs Scheduled

National MBA Questions Congressional Report on Local Impact of Subprime Foreclosures

WASHINGTON, DC (April 11, 2007) - John M. Robbins, CMB, Chairman of the Mortgage Bankers Association (MBA) responded today to a report from the Congressional Joint Economic Committee (JEC) looking at the current environment surrounding rising foreclosures among subprime loans.  According to Robbins, the JEC overstated the potential number of foreclosures and thus the potential impact.  Robbins also addressed the policy proposals contained within the report.

Robbins issued the following statement:

"I applaud Senator Schumer and the other members of the JEC for their efforts to quantify the negative effect that rising foreclosures are having on local communities.  This is a serious problem that is hurting borrowers, communities, lenders and investors.

A number of the policy initiatives the study proposes are solutions that MBA strongly applauds and for which we have a long record of advocating.  We support a uniform national standard to combat predatory lending, as well as foreclosure prevention programs. Remember, according to the JEC report itself, a foreclosure can cost a lender as much as $50,000 per event.  We have already begun discussions with regulators, investors and other stakeholders on new products to help those borrowers who find themselves having trouble paying their loans.

We do, however, have grave concerns about a suitability standard.  Mortgage lenders are not analogous to financial analysts in this way and a subjective suitability standard could threaten decades of fair lending gains.

It is important to note, we believe the report overstates the potential number of foreclosures.  By relying on faulty, inflated data to draw its conclusions, the report paints a far more dire picture of the landscape than MBA's studies support.  Further, the report relies on a flawed report by the Center for Responsible Lending that issued a projection of foreclosures based on unrealistic, worst-case assumptions.  In addition, the report relies heavily on foreclosure estimates from RealtyTrac, an internet-based firm specializing in marketing foreclosed properties.  MBA estimates that RealtyTrac overstates the number of foreclosures by around 30 percent.

We agree that a major cause of foreclosures is local economic conditions, not the fact that loans were made to subprime borrowers.  For example, the states of Ohio, Michigan, Indiana, Illinois and Wisconsin represent only about 14 percent of outstanding mortgages in the country but account for 28 percent of the loans in foreclosure, and subprime borrowers account for only about half of the loans in foreclosure in these states.  This region has lost over 700,000 jobs since the middle of 2000 and it is clearly problems with the economy in this region that are driving the ability of borrowers to repay their mortgages or sell their homes if they get into trouble. 

We look forward to working with Senator Schumer and other members of the Committee, as well as all interested legislators, regulators and other stakeholders to help those consumers who are in a loan they can't pay and to try and prevent more people from getting in trouble in the future."  

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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 500,000 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 3,000 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.

Freddie Mac's April 2007 Economic Outlook

2007 - 2008 MBBA-NH Proposed Slate of Officers

We are pleased to inform you of the proposed slate of officers for the 2007 - 2008 year.  The slate is to be ratified by MBBA-NH members at the Annual Dinner on May 3, 2007.  Click here for more information on the Annual Dinner.

MBBA-NH Bylaws are Updated

This year the board was successful in updating the association's Bylaws - Canon of Ethics and Standards of Practice.  A very special "thank you" goes to Mike Arrison of Clarion Mortgage/MBBA-NH member-at-large.  Mike devoted many hours to reviewing and updating this document.  He was also very careful to engage the board throughout the process by seeking their input. 

We are pleased to offer our membership a new version of the Bylaws - Canon of Ethics and Standards of Practice, which now reflect our Association today.  Click here for this new version to be ratified by the membership at the Annual Dinner on May 3, 2007.  Click here for information on the Annual Dinner.

  Mike Arrison

The changes in the bylaws include:

 

Grammar and spelling

More in depth Grievance Policy and Procedures

Size of Board - 13 vs 12

President only votes to break a tie

Changing term Vice President to President Elect

Total term length of Member at Large is now limited to two terms

Eliminate restriction of both President and President Elect not being brokers

Restriction of affiliate serving as both President and Vice President

Establishing standing committees

Audit of the books at least every two years

Upcoming Annual Dinner Highlights
 

You're in for a fun evening!
 

Mark your calendar for the MBBA-NH's Annual Dinner on Thursday, May 3, 2007, at the Puritan Backroom Restaurant in Manchester, New Hampshire.  The agenda is chockfull of surprises . . .

What interesting items will be available at the silent auction, which benefits our college scholarship fund?

You'll have a unique opportunity to get to know the high school seniors who
have been chosen to receive the MBBA-NH scholarship.

There'll be a ceremony in honor of this year's Certified Mortgage Professionals and Loan Originators Award.

Finally, the evening will be topped off with entertainment by the multi-talented, celebrity illusionist Joe Posa.
You'll get completely WOWED by his performance!

Don't delay.  Sign up today.  It's a perfect opportunity to spend an enjoyable evening with your friends and colleagues.  Click here for more information and/or to register.
 

Local Mortgage Company Goes Green 

Regency Mortgage Corp. will undertake four environmental initiatives in order to neutralize their greenhouse gas emissions, the Manchester-based lender announced today. 

“We recognize that climate changes driven by global warming are harming the economy and natural resources of New Hampshire,” said Regency President Quentin Keefe.  “By taking a focused but multifaceted approach to reducing energy use by the company and our employees, we will benefit the environment and the state in many ways.” 

The four components of the company’s “Green Initiative” are

1. Partnering with Clean Air-Cool Planet, a non-profit located in Portsmouth, NH, to develop a long term, sustainable strategy to reduce energy consumption and increase their use of products that are environmentally friendly;

2. Working with their energy supplier and landlord to identify areas of opportunity to save energy in their workplace;

3. Offering an innovative hybrid vehicle incentive program to their employees for the purchase or lease of a new hybrid vehicle;

4. Committing to educate their employees on how to save energy and lessen their environmental impact at home as well as in the office.

Keefe said the company, and its affiliated company, Home Trust Title, LLC will create a Green Committee of employees to help direct and support the initiatives on an ongoing basis.  

“Regency has for years prided itself on being a good corporate citizen,” Keefe said.  “But this is just a start for us on this issue.  We intend to become carbon neutral and, as a new member of New Hampshire Businesses for Social Responsibility, we will be doing as much as we can to provide leadership to other small businesses in New Hampshire.” 

Keefe noted the company’s commitment to lead extended beyond environmental issues to “business ethics, corporate accountability, employee rights  and more.  

“Regency Mortgage Corp. takes its responsibilities to its employees and its community very seriously and is proud to be able to take on this leadership role.”

We are pleased to accept articles for publication in MBBA-NH's Points of Interest. 
All articles submitted will be published at the discretion of MBBA-NH's Public Relations Committee.
 

Volunteering for the Ethics/Legislative Committee Keeps You Informed

Are you interested in how a bill becomes law?  The Ethics/Legislative Committee, with the input of our lobbyist, Jim Demers, tracks proposed legislation that may affect the way our industry does business. 

Some of the responsibilities of Ethics/Legislative Committee:  may submit written testimony to a legislative hearing in Concord and a designated committee member may speak at a hearing on behalf of the association.  The committee meets once a quarter.  Their main mode of communication among committee members is email.

The photo below was taken at a dinner for National Association of Mortgage Brokers (NAMB) Legislative Chair Joe Falk.  Joe recently presented a very successful legislative update seminar at the Manchester Country Club. 

If you would like to join the Ethics/Legislative Committee, please contact the MBBA-NH office at info@mbba-nh.org.

  Ethics/Legislative Committee

Back Row (L to R):  MBBA-NH Legislative Co-Chair Walter Vail, Beacon Mortgage;
NAMB Legislative Chairperson Joe Falk; Bonnie Leclerc, Franklin Savings Bank; Meg Malette,
MBBA-NH; Kurt Strandson, Radiant Mortgage; and Ron Penn, Equity Resources Group
Front Row (L to R):  MBBA-NH Legislative Co-Chair Mike Arrison, Clarion Mortgage
Associates, and Robin Canfield, Equity Resources Group
(Photo courtesy of Julie Clark, Horizon Settlement Services)

Programs Scheduled

Wednesday, May 2, 2007—Preparing for and Responding to the State Examination Process at the Manchester Country Club, 180 South River Road, Bedford, New Hampshire, from 8:30 A.M. to 11:30 A.M. (This is a MUST for mortgage brokers!)  Click here for more information and to register.

Thursday, May 3, 2007—Annual Dinner at the Puritan Back Room Function Hall, 245 Hooksett Road, Manchester, New Hampshire, with a silent auction to benefit MBBA-NH’s college scholarship fund and after-dinner entertainment.   Click here for more information and to register.

Thursday, May 8, 2007 - USDA Rural Development Loan Guarantee Training by teleconference at 10 A.M.  Perfect for mortgage brokers and mortgage bankers.  Contact sharon.lafley@vt.usda.gov to register and more information.

Thursday, May 10, 2007 - Women's Council of Realtors presents 3rd Annual International Festival at the Manchester Country Club, 180 South River Road, Bedford, New Hampshire, from 6 P.M. to 10 P.M.  Cost to attend is $55 or $100 for two tickets.  Contact Michelle Gannon at michelle@cbcrealty.com.  Proceeds benefit New Hampshire Dream Factory.

June 2007—An Emerging Market:  How can Residential Lenders/Brokers Successfully Tap into Their Existing Databases to Cross-Sell Commercial Lending Products?  More information to come!

July 2007 - Summertime cruise on Lake Sunapee.

Tuesday, July 10, 2007 - Wentworth By The Sea Golf Outing with the Massachusetts Mortgage Bankers Association.

September 7, 2007 - MBBA-NH Annual golf outing at the Owl's Nest, Campton, New Hampshire.  Benefits New Hampshire Housing's home buyer seminars.