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NEWS RELEASE 2007
ABA Media Contact: Jim Eberle
(202) 663-5477
E-Mail:jeberle@aba.com
ABA STATEMENT ON FEDERAL RESERVE’S NEW MORTGAGE LENDING PROPOSAL
by Edward L. Yingling, ABA president and CEO
“This is an important proposal that will make a significant difference in protecting mortgage borrowers and potential homeowners. Regulations of this kind must be measured by their ultimate impact on financial services customers.
“There is much to commend and much to worry about in the proposed rules. The real plus for customers will be knowing that uniform, national standards will apply to all lenders, and targeted especially to abuses by unregulated or lightly regulated non-bank lenders. With uniform and effective enforcement for all lenders, these rules could go a long way to drive the unscrupulous from the lending markets.
“We worry that replacing important lending flexibility with rigid formulas might also limit lending to some creditworthy borrowers. The abuses took place in practices more than in products. We worry that some of the product restrictions could make it harder for bankers to tailor products for their customers and communities and result in some creditworthy customers not being able to obtain a loan.
“We look forward to encouraging final rules that strike the right balance of driving the bad actors and practices out of the lending business while allowing prudent lenders to continue to serve their communities in new and innovative ways.”
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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 $12.7 trillion in assets and employ over 2 million men and women.
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