MBA Statement on President Obama’s Housing Speech

CONTACT
Rob Van Raaphorst
rvanraaphorst@mba.org
(202) 557- 2799

WASHINGTON, D.C. (January 8, 2015) - Officials from the Mortgage Bankers Association (MBA) issued the following comments on President Obama's speech in Phoenix, AZ:

David H. Stevens, President & CEO MBA:

"MBA applauds President Obama and his administration for continuing to look for ways to help first time home buyers, grow the housing market and strengthen the economy. Specifically, MBA is pleased about the decision to make a 50 basis point reduction on the annual FHA MIP, something MBA has called for in the past. This is a win-win. It's good for borrowers and good for FHA, helping the agency stabilize its market share and continue to rebuild the MMI fund.

"Additionally, we were encouraged that President Obama called for GSE reform, which hopefully will spur action on Capitol Hill. And the coming changes to Fannie and Freddie's rep and warrant framework that he mentioned should help lessen the high level of uncertainty lenders face and allow them to use the full extent of the GSE credit box to serve more qualified borrowers."

Bill Cosgrove, MBA Chairman and CEO, Union Home Mortgage:

"As an independent mortgage banker whose business includes a significant amount of FHA lending, I can attest that the 50 basis point reduction in FHA's annual premium will have a significantly positive impact for my borrowers and the housing market. Specifically, this will help first time homebuyers by making FHA loans more affordable. Given the timing, just as we begin the spring home buying season, I think today's announcement is just what the market needs.

"MBA looks forward to working with the President, as well other policymakers in Washington, to ensure the real estate finance market continues to strengthen so that all consumers have the opportunity to enjoy the dream of homeownership."