PRESS RELEASE
Posted on: March 24, 2007

Contact:
Jodi Greenblatt
(703)342-5852

NAMB Urges Due Diligence Before Legislating Fixes to Mortgage Markets
Rushing To Introduce Legislative Solutions Could Harm Consumers

Washington, D.C. - March 21, 2007 - NAMB President Harry Dinham today testified that the best solutions to the tragedy of rising foreclosures will be discovered through a careful examination of the numerous factors that contributed to increasing delinquencies.

Dinham spoke before the U.S. House Subcommittee on Domestic Policy and acknowledged that even though the market is correcting itself after a period of unprecedented access to credit, many challenges still exist.

"No one questions the personal heartbreak of foreclosure or the serious affect this is having on America's cities," said Dinham. "Even one family losing their home to foreclosure is too many regardless of the cause. Now is the time for legislators and the industry to make sure that mechanisms are in place to preserve the vitality of our cities and the dream of responsible home ownership."

He said there are a number of factors that have contributed to current market challenges. During his testimony, he listed nearly 30 issues that have influenced increased delinquency rates. NAMB has asked for a GAO study to narrow the list to the most common contributors to foreclosure in the current market. House Financial Services Chairman Barney Frank has assured NAMB he supports that effort.

"Before we rush to judgment and conclude that a particular segment of the mortgage market or practice is largely responsible for the increase in home foreclosures, it is imperative to first examine and verify the true causal factors for the increase in mortgage delinquencies and home foreclosures," said Dinham.

Dinham said that while quickly enacting new legislation or regulations may be politically satisfying, it could be detrimental to the long-term health of home ownership for American Consumers

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The National Association of Mortgage Brokers is the voice of the mortgage broker industry with more than 25,000 members in all 50 states and the District of Columbia. NAMB provides education, certification and government affairs representation for the mortgage broker industry, which originates over 50% of all residential loans in the United States.

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