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NEWS RELEASE
Jan. 9, 2009
ABA Media Contact: Peter Garuccio
(202) 663-5452
E-mail: pgarucci@aba.com
ABA STATEMENT IN OPPOSITION TO AGREEMENT ON
MORTGAGE CRAM-DOWN LEGISLATION
by Floyd E. Stoner, executive director, congressional relations & public policy
"The ABA has consistently opposed proposals that would give bankruptcy judges broad authority to unilaterally modify the terms of mortgages. Such proposals would bring additional risk and uncertainty to an already volatile mortgage market and would make home loans more expensive and less available for consumers.
"ABA was not a participant in the recent agreement between Citigroup and Congressional proponents of mortgage cram-down legislation. ABA is opposed to the agreement because it will leave in place overly broad mortgage cram-down authority and other provisions that will harm thousands of banks across the country that have made, and continue to make, good loans.
"Several important issues still must be addressed and ABA looks forward to working with Congress and the Administration as discussions continue on this important issue."
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The American Bankers Association brings together banks of all sizes and charters into one association. ABA works to enhance the competitiveness of the nation's banking industry and strengthen America's economy and communities. Its members – the majority of which are banks with less than $125 million in assets – represent over 95 percent of the industry's $13.6 trillion in assets and employ over 2 million men and women.
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