TABLE OF CONTENTS

* MBA Testifies on The Mortgage Reform and Anti-Predatory Lending Act of
  2007

* Bankruptcy Reform will Cost Consumers

* NAMB Urges House Financial Services Committee to Hold the Line
  on All-Originator Standards

*  MBBA-NH Logo - Use It or Lose!

* MBBA-NH Introduces Its Excellence Award

* Golf Outing Benefits First Time Home Buyer Education

* Network at Night Proves to be a Popular Meeting Place

* New England Mortgage Banking Conference (NEMBC) Skillfully Met
   Attendees' Needs

* Programs Scheduled

 

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MBA's Senior Vice President Kurt Pfotenhauer Testifies On
H.R. 3915 -- The Mortgage Reform and Anti-Predatory Lending Act of 2007 

WASHINGTON, DC (October 24, 2007) - Kurt Pfotenhauer, Senior Vice President of Government
Affairs and Public Policy for the Mortgage Bankers Association (MBA) testified today before the House Committee on Financial Services on H.R. 3915, The Mortgage Reform and Anti-Predatory Lending Act of 2007. 

The following is his oral statement, as prepared for delivery.   

"Mr. Chairman, Ranking Member Bachus, it has been a long day for all of us, so I will be brief. 

I'd like to start where credit is due.  Mr. Chairman, as per your word, the process that has brought us to the introduction of your bill has been deliberative and open.    

As markets have become more and more volatile, you, your colleagues and your staff have stayed focused.  You've placed making policy ahead of scoring political points.  Your staff are knowledgeable and professional.  Thank you.  Your approach is refreshing and it keeps us focused on policy rather than personality and politics.   

I'd like to add one other thing in the general category of compliment.  This bill is well thought out, and if enacted, it will be extraordinarily consequential.  That comment does not, of course, signal agreement, but is intended to recognize the thought and the effort that went into this ambitious proposal and to concede upfront that your hard work justifiably gives you some insulation from the common industry charge that your bill is fraught with the danger of unintended consequence.  Indeed, I rather suspect that you intend much of the consequence that would result from this bill.  Which begs the question, is your approach, the right approach? 

Members of the committee, if they don't understand, should understand that if H.R. 3915 becomes law, some people will be locked out of the mortgage market, many of whom would have been successful homeowners.  Lowering the HOEPA triggers, establishing the ability to repay and net tangible benefits tests and eliminating some products from the market will have this effect.  The question for this committee is whether the protections that this bill provides are worth that price.   

85% of subprime borrowers are paying their mortgages on time.  It's an open question, how many would even qualify for a loan under the proposed regulatory construct.  The alternative to eliminating borrowers from the market is to prepare them for the market.  In that respect, we urge the Chairman to tackle the lack of transparency in the origination space.  Streamlining the mortgage process and improving disclosures are essential to helping borrowers help themselves. 

In my remaining time, I'd like to flag two areas of significant concern. 

First, there is what I'd call a "soft suitability" standard in evidence in several sections of the bill.  For example, Section 103, dealing with steering, asks the regulators to "promote the interest of the consumer in obtaining the best terms" for a mortgage.  While this is guidance to the regulators and not a direct requirement for lenders, we believe that the regulators will take this guidance and either attempt to define the "best" product for a borrower or force lenders to do so.  We understand that your goal is to assist consumers in identifying the best loan product for themselves.  With your permission we will work with your staff to re-phrase these areas of concern in a way that preserves your intent while stopping short of encouraging a suitability standard by regulation. 

Finally, let me state clearly that the Mortgage Bankers Association supports legislation to establish a consumer protection standard in the mortgage market for any number of reasons, one of which is because the patchwork quilt of state and local predatory lending laws is an impediment to the smooth and efficient operation of a national mortgage market.  We believe that any bill must include broad pre-emptions that give borrowers a single consumer protection standard, and give lenders the certainty of a single standard to live up to.   

This bill as currently drafted is not pre-emptive.  As the Committee already knows, this prevents MBA from offering our support. 

Despite our lack of support, we would like to continue to work with you in a constructive way to improve this bill.  My written testimony suggests a number of fixes that will make the bill a better product.  Some of them merely clarify what is in HR 3915.  Others are alternative approaches to the same goal.  Still others are areas where we may have to agree to disagree.  I do not think there should be any surprise here today that the Mortgage Bankers Association is going to oppose some elements of this bill.  But I hope that there is likewise no surprise that the Mortgage Bankers Association will continue to work with you in a spirit of constructive good will, to make this bill better." 

Pfotenhauer's entire written testimony can be found at www.mortgagebankers.org. 

### 

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.
 

 
MBA's Kittle:  Bankruptcy Reform Legislation Will Cost Consumers

Washington, DC (October 30, 2007)  -  David G. Kittle, CMB, Chairman-elect of the Mortgage Bankers Association (MBA) testified today before the House Judiciary Committee's Subcommittee on Commercial and Administrative Law. 

In his testimony, Kittle told the committee that proposed legislation to reform the bankruptcy code and allow judges to "cramdown" debt on primary residential mortgages will impose significant costs on consumers by restricting the flow of capital into the mortgage market and increasing the price tag on all mortgages.

"If you chip away at the security created on home mortgages-and this bill is not a small chip, it is a sledgehammer attack-you chip away at the entire core of the mortgage finance system," said Kittle.  "In order to account for the added risk you will add significant costs to obtaining a mortgage.    If this bill becomes law, we believe mortgage rates would jump significantly, going up 1½ to 2 points for everyone taking out a loan."

Today's hearing focused on H.R. 3609, the Emergency Home Ownership and Mortgage Equity Protection Act of 2007.  H.R. 3609 would allow judges under Chapter 13 bankruptcy proceedings to unilaterally mark down the value of a primary mortgage from its full amount down to the fair market value of the home.  The bill would also give judges free reign to change the other terms of the loan, including the interest rate or the length of the loan.

"What does that mean?" asked Kittle.  "Assume you take out a 30 year fixed rate mortgage loan for $300,000 in today's market.  If you are a prime borrower you will receive a rate of about 6% with no points, giving you a principal and interest payment of about $1800 per month." 

"If you pass this bill we estimate that the same loan with the same terms could cost as much as 8%," continued Kittle.  "That increases your payment to about $2,200 per month.  This will be an increase of $400 per month, $4,800 per year, for a total of over $144,000 over the life of the loan. This is a massive back-door tax increase on homeowners." 

A full copy of Kittle's prepared testimony can be found on www.mortgagebankers.org.

###

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.

NAMB Urges House Financial Services Committee
to Hold the Line on All-Originator Standards

NAMB President Elect, Marc Savitt, made the case for uniform standards for all originators Wednesday in testimony before the House Financial Services Committee on Mortgage Reform. The bill introduced on Monday would establish national standards for testing, continuing education and criminal background checks for all originators. In his testimony, Savitt warned the Committee not to allow other industry players to carve out exemptions, saying that “creating a national standard that does not include all mortgage originators is a disservice to brokers and the public at large, because it allows bad actors to keep originating loans.”

Copies of NAMB’s written testimony can be found here and NAMB President Elect, Marc Savitt’s oral testimony can be found here.

NAMB's leaders are working hard everyday to represent and defend our industry, and communicate our positions and policies with lawmakers and the media. This alert was sent to you as a NAMB member, to keep you informed of our progress. Please continue to look for more alerts in the days, weeks, and months ahead. Since you may receive this alert before the related news story is published, NAMB is unable to link you to the final news story. We encourage you to check the media outlet's website mentioned in this alert to see how the story appears.

MBBA-NH Logo - Use It or Lose!

Did you know that as a member of MBBA-NH you can use the MBBA-NH logo on your business card, Web site, lapel pin, and letterhead?   

Why not set yourself apart from the others and show your commitment to the mortgage industry by promoting your affiliation with New Hampshire premier mortgage industry trade group! 

If you are a current member of MBBA-NH you may use the following logos: 

 
If you are a member of MBBA-NH, and happen to be a CMP, then you also have access to these logos to promote your achievements within the industry:

To have digital images of the MBBA-NH logos contact Meg Malette at info@mbba-nh.org or by phone at (603) 529-5001.  In order to receive a copy of the MBBA-NH logo, each member must sign, and fax the following MBBA-NH Logo Policy and Use Agreement below.  The fax number is (603) 529-5005.

MBBA-NH Introduces Its Excellence Award

MBBA-NH is accepting nominations for the Excellence Award.  If you know someone in the mortgage finance industry who continuously provides outstanding service, then you should nominate him/her for MBBA-NH Excellence Award.   We are accepting nominations NOW!

MBBA-NH Excellence Award is bestowed upon an individual member who demonstrates the following characteristics:

          Professionalism
          Knowledgeable
          Ethical
          Experienced
          Community-minded
          Actively involved with MBBA-NH

The Excellence Award winner will be acknowledged throughout the year, beginning at the annual dinner in May, where he/she will receive a plaque; a press release with a photo will be sent to the media in New Hampshire, announcing the winner of the award; MBBA-NH will acknowledge the winner throughout the year in various ways; winner will be listed in MBBA-NH's Web site; and a monetary contribution will be made to the winner's charity of choice.  The MBBA-NH Excellence Award Committee will rate each application on a total of 100 possible points.  The higher the points, the better for the applicant. 

So if you know a special person who should receive that public recognition they deserve, then take the time to nominate him/her today!  Click here to download an Excellence Award application.

Thank you to the following people who developed the Excellence Award and are the members of the Excellence Award committee:  Barbara Cunningham, St. Mary's Bank; Joe Moriarty, Guardian Mortgage; Carolyn Sandford, Downeast Mortgage; and Doreen White, Market Street Settlement Group.
 

MBBA-NH Golf Outing Benefits First Time Home Buyer Education

MBBA-NH's 2007 Golf Extravaganza took place on Friday, September 7, 2007, at the Owl's Nest Golf Club in Campton, New Hampshire.  It was a successful event: great weather, beautiful course, delicious food, and camaraderie.  The outing raised $3,000 for New Hampshire Housing's first time home buyer seminars.  Thanks to everyone who helped us do that!

                           First Place Team                                                                                 Second Place Team               

The winning foursome included Tom Ouellette, Steve Frasca, Jon Wentworth, and Kevin Kouble of Profile Mortgage (L to R).  Congratulations guys!  In the second place team was Tim Mullen and Barbara Lussier of Bellwether Community Credit Union, Ken Wells of Mascoma Savings Bank, and Paul Chandler of Universal Mortgage (L to R).  Congratulations to you, too, and your great teamwork!

Another "thank you" to one of our hole sponsors, Granite Settlement Services, and to all of our 2007 - 2008 Preferred Corporate Partners:

GOLD
Laconia Savings Bank
Market Street Settlement Group

SILVER
AIG United Guaranty
Bellwether Community Credit Union
CATIC
CBC Innovis
Downeast Mortgage Corporation
First American Title Insurance Company
Horizon Settlement Services
Merrimack County Savings Bank
MGIC
Old Republic Title Insurance Company
TD Banknorth
Universal Mortgage Corporation

 

The fellows from Countrywide Home Loans, Bard Conn and Ralph Coppola (L to R)

Photos Courtesy of Julie Clark, Horizon Settlement Services

d1

Network at Night Proves to be a Popular Meeting Place

The membership committee continues to offer Network at Nights.  These events provide an opportunity for members to exchange ideas and discuss various issues and news with other professionals in the mortgage finance industry. 

The most recent Network at Night took place on the evening of Wednesday, October 24, 2007, at the Sky Lounge & Bistro in Nashua.  There were about 50 people in attendance.  Several non-members attended and expressed interest in joining the association.

Julie Clark of Horizon Settlement Services was on hand and took the following photos of the evening:

 Skip Trafton, Brian Brisebois, and Ted Perkins (L to R)
                 of First Horizon Home Loans

   
Julie Clark of Horizon Settlement Services and      
  Joe Saylor of Market Street Settlement Services     
   

Marilyn Sanchez of Sweeney Closing Services     
 and Jon Wentworth of Profile Mortgage, LLC      

            Aaron Varela of Financial Resources

Joe Petruzziello of Mortgage Network

New England Mortgage Banking Conference in Providence, Rhode Island, Skillfully Met the Attendees' Needs

The New England Mortgage Banking Conference (NEMBC) in September offered its attendees opportunities in networking, education, new products, and fun!  In addition to that there was a job fair for people who became recently unemployed in the mortgage finance industry.  With the downturn in the real estate market, the conference attracted 2,100 attendees, compare to 2,800 attendees last year, and the number of exhibitors this year were 140, compared to 197 last year.  For those of us who attended the conference, we can truly say that it was a success; it delivered timely educational programs, lots of networking, and provided everyone the chance to visit exhibitors and their new products. 

One conference goer said, "I thought it was a great event, highly professional and upbeat in a very challenging market."  Another one said, "Especially given the state of the industry, I think the job fair and the reduced entrance fee for people in transition was excellent.  I, myself, had been laid off just two weeks before the conference and would never have been able to attend if not for the special offer on Thursday.  I landed a new job just days after the conference and the contact information I was able to collect at the show has already proven instrumental in my marketing efforts at my new firm."

MBBA-NH's involvement in the conference not only includes participating in the planning process, but the sponsoring of a regulators roundtable discussion.  This session is usually the most popular and was moderated this year by our Ethics/Legislative Co-chairperson Mike Arrison.  Mike did a good job keeping the discussion moving and interesting.  Thank you, Mike!

Each year several New Hampshire volunteers help with the conference behind the registration desk, stuffing conference bags, moderating events, etc.  We would like to thank them for their assistance:  Gladys White of Downeast Mortgage, Doreen White of Market Street Settlement Group, Ralph Coppola of Countrywide Home Loans, Mike Arrison of Clarion Mortgage Associates and Julie Clark of Horizon Settlement Services who is MBBA-NH's unofficial photographer.

Despite the slump in the real estate market, Massachusetts MBA Executive Director Kevin Cuff and Massachusetts MBA Director of Meetings and Conferences Debbie Sousa brought us a successful conference that skillfully met the attendees' needs.  For those of you who have never attended the biggest state mortgage banking conference in the country, we encourage your attendance next year.  It's an annual event you will not want to miss because its benefits are many.

Enjoy the following photos of the conference, courtesy of Julie Clark, Horizon Settlement Services:

                     Hazel Mae of New England Sports Network (NESN),
                               Massachusetts Executive Director Kevin Cuff, and
Connie Ciruzzi of Merrimack County Savings Bank and                            Red Sox President and CEO Larry Lucchino (L to R) Linda Hausler of Residential Mortgage Services (L to R)

                                 Ryan Fay
Joe Saylor of Market Street Settlement Services (L to R)

                                                                               Gary Coffin of Horizon Settlement Services

Julie Clark of Horizon Settlement Services, Meg Malette of MBBA-NH, Doreen White of Market Street Settlement Group, and Gladys White of Downeast Mortgage Corp./MBBA-NH President (L to R)
 

Programs Scheduled

November 14, 2007 - Understanding Commercial Mortgage Lending:  Future Opportunities at the Manchester Country Club, 180 South River Road, Bedford, New Hampshire.  Click here for more information and to register.

December 5, 2007 - Annual Holiday Get-Together at the Manchester Country Club, 180 South River Road, Bedford, New Hampshire, from 5:30 P.M. to 9:00 P.M., benefiting the U. S. Marine Corps' Toys for Tots.  Entertainment by One Fine Mess.  Put your dancing shoes on for this annual, very popular party!  More information to come.

January 2008 - Legislative Update with the National Association of Mortgage Brokers (NAMB) Legislative Chair Denise  Leonard (national) and MBBA-NH Lobbyist Jim Demers (state). More information to come.

February 6 and 7, 2008 - Annual Mortgage Conference at the Radisson Hotel, 700 Elm Street, Manchester, New Hampshire.  Great educational sessions, lots of networking opportunities, economic update, entertainment, motivational speakers, marketplace with exhibitors, etc.  Mark your calendars with these dates.  More information to come.