MBS and Securitized Products Division
Releases:
April 7, 2008
SIFMA submits letter in opposition to Minnesota Subprime Foreclosure Deferment Act
Yesterday SIFMA and the ASF sent a letter (pdf) to the Minnesota House of Representatives opposing H.F. 3612 (Minnesota Subprime Foreclosure Deferment Act of 2008), in light of a vote on the legislation which is expected to occur this week, or sometime next week. The legislation contains provisions which provide for the twelve month deferment of the foreclosure process and reduction of the contractual payment obligation of a borrower during the period of the delay. The letter urges Minnesota Representatives to oppose the legislation, and notes that the bill will not only be harmful to investors of MBS, but it will have an overall negative impact on those seeking mortgage credit. By eroding confidence that lenders and investors have in the stability of contracts in Minnesota, the legislation will pose detrimental consequences for accessible credit, specifically hurting subprime borrowers, the very segment the bill attempts to help.
Please contact us with any questions or comments. Sean Davy, 212.313.1118 sdavy@sifma.org, Chris Killian, 212.313.1126, ckillian@sifma.org
