ABA Statement on the Adminstration's Housing Announcement - ABA (Washington DC)

By Frank Keating, president and CEO, American Bankers Association
 
"Recovery in the housing market is vital to future economic growth, and we commend the Obama administration for their attention to housing recovery efforts. However, many current proposals and programs will limit or delay that recovery. The refinance proposal announced today, unfortunately, includes a tax on banks, which will directly reduce lending capacity and banks' ability to lend up to $100 billion.
 
"ABA is concerned that uncoordinated and ever-changing government programs, including those detailed today, create uncertainty in the market, increase the cost of homeownership, and reduce credit availability needed to support homeownership and the economic recovery.

"The banking industry is committed to supporting a strong, stable housing market and has completed twice as many private modifications as there have been modifications under various government programs. Since 2007, four out of five modifications have been done outside of government programs by individual lenders.
 
"The refinance program proposed today will require congressional approval. ABA will continue to work with the administration and Congress to effectively address the nation's housing problems and our members will continue to work with borrowers to address their needs in a responsible and fair manner."