Yesterday's passage of S.B. 3217, the Restoring American Financial Stability Act of 2010, is flawed according to the Mortgage Bankers Association (MBA).

"MBA has long supported a more efficient regulatory regime for the financial services industry, and passage of the bill is another important milestone. However, the bill, as we view it, still has flaws that will negatively impact borrowers and the real estate markets," said Robert E. Story, Jr., CMB, Chairman of MBA.

According to further statements by Story, the next step is to reconcile the differences between this Senate Bill and the House Bill. MBA's preferred approach would be for Congress to convene a formal conference committee to ensure that the final language on risk retention does not discourage prudent, responsible lending. "If not," Story says, "we risk doing long-term damage to our single-family, multifamily and commercial real estate markets."

"Unless improvements are made during the Senate-House negotiations, this bill will likely bring regulations that will only further constrain credit for borrowers, make real estate purchases more expensive and drag out the ongoing turmoil in the real estate markets."

Read more from the Real Estate Channel.

Posted in Education And Training

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