Statement of David G. Kittle, CMB
Chairman-Elect, Mortgage Bankers Association
Before the Subcommittee on Commercial and Administrative Law
Committee on Judiciary
United States House of Representatives
January 29, 2008
Madam Chairwoman, Ranking Member Cannon and members of the Committee, I am David G. Kittle, CMB, President and Chief Executive Officer of Principle Wholesale Lending, Inc. in Louisville, Kentucky and Chairman-Elect of the Mortgage Bankers Association (MBA).1 I appreciate the opportunity to appear before you today to testify on behalf of MBA and the mortgage industry concerning the situation in today’s market, to help identify solutions and to dispel the myths about legislation that would alter the treatment of home mortgages under Chapter 13 of the Bankruptcy Code.
The myths most in need of dispelling concern H.R. 3609, the ‘‘Emergency Home Ownership and Mortgage Equity Protection Act of 2007,’’ introduced by Representative Brad Miller and Chairwoman Linda Sanchez and amended by Representative Steve Chabot in the full Judiciary Committee. The amended bill makes key changes to Chapter 13 of the Bankruptcy Code including allowing the following changes for seven years:
If these provisions are enacted, there will be significant consequences for future borrowers, mortgage servicers, investors, pension funds and other global investors in mortgage-backed securities (MBS), as well as, the entire American economy. For these and other reasons, MBA opposes H.R. 3609.