State Bills Would Shut Out Too Many Mortgages, and Jobs

Detroit Free Press (06/27/08); Kempner, Jonathan L.
Mortgage Bankers Association President and CEO Jonathan Kempner notes that while the 11 housing-related bills under consideration by the Michigan Senate have the good intention of easing the housing crisis, they likely will only exacerbate the real estate slump and ultimately boost the state's already high unemployment rate. Kempner points out that mortgage lenders will have difficulty competing for business if the bills are enacted, as they exempt certain banks, credit unions and other depository institutions. He adds that the bills would eliminate subprime lending statewide, even though nonprime loans continue to help numerous residents become homeowners. According to Kempner, "While these bills are well intentioned in their attempt to find a solution to the state's housing woes, they have far-reaching negative consequences in the form of reduced credit availability, increased loan costs to consumers, and even the likely exodus of companies that would no longer be willing to do business under the onerous lending restrictions."