Heading
The Threat to the
American Dream
The Obama Administration's Proposed Changes in America's Mortgage Finance System and the Unintended Consequences to America's Homeowners and Homebuyers
presented by: The Mortgage Bankers Association of Missouri

The Mortgage Bankers Association of Missouri is advising its members of our shared concern of the long-term success and stability of America's mortgage finance system. These concerns are based upon the proposed measures outlined in the Obama Administration's Report to Congress – February 2011 titled: Reforming America's Housing Finance Market. These proposed measures require our Association's immediate attention and response.

The Obama Administration boldly states: "our plan also dramatically transforms the role of government in the housing market". As stewards of housing in Missouri this vague position taken by the Obama Administration requires us to peel back the multiple layers and review the potential intended and unintended results.

The Mortgage Bankers of Missouri believes that the proposed measures are:

  1. A clear indication of the Obama Administration's lack of understanding of the root causes of our current housing market turmoil.
  2. Evidence that the Obama Administration does not clearly grasp the role that homeownership plays in America.
  3. An attempt to redefine the nation's goals away from homeownership through the implementation of unnecessary increased downpayment requirements and reduced loan limits.
  4. A delayed over-reaction by the Obama Administration to put forth untested measures to a private sector system that has been revamped through self-correction and the Dodd-Frank legislation.

The Mortgage Bankers Association of Missouri believes that these proposed, drastic alterations to our country's mortgage finance system could mean that:

  • Tomorrow's homebuyers may no longer be able to rely upon the same mortgage finance system that paved the way to homeownership for their parents and grandparents.
  • Existing owners of real estate in Missouri may experience further decline in property value as purchase demand is reduced because of a lack of affordable credit to buyers.

Therefore, our Association believes that it is time for a collective "wake-up call" and action by all of our members. We encourage other associations of Mortgage Lenders, Realtors®, Homebuilders, Appraisers, Title Companies, Trade Unions, etc. to become engaged and involved. Grass-roots efforts are a powerful and effective tool for creating dialogue with our elected officials in Missouri and Washington, DC.

In an effort to begin this process, our Association will launch a systematic, grass-roots Congressional "contact campaign" designed to draw attention to this serious issue. We intend to offer our elected officials the resources, in-depth knowledge, expertise and counsel of our Association.

What are your responsibilities in this effort?

  1. Review the Obama Administration's Reforming America's Housing Finance Market report to Congress. Consider the implications to your business, your staff and your customers.
  2. Review our Association's letter directed to each Member of Congress representing the citizens of Missouri.
  3. Review the Mortgage Bankers Association of Missouri Platform.
  4. Mobilize your own company's contact campaign. Remember this is about: (1) Missouri consumers, (2) our livelihoods, (3) our industry, (4) our system of financing homeownership and (5) the value of our own investments in real estate in Missouri. Remind your employees of their constitutional privilege as a voter – they should let their voice be heard. Join our Association by contacting your Members of Congress to express your concerns.

The Mortgage Bankers Association of Missouri urges you to join our cause to protect sustainable homeownership in Missouri and the jobs that support our industry! For more information and sample letters to Congress, see the attached documentation or contact an officer of the MBA of Missouri!