MBA: Negotiators Need to Regroup, Find Common Ground

MBA (9/30/2008 ) MBA Staff
Following yesterday’s House vote rejecting proposed legislation aimed at stabilizing the U.S. financial markets, the Mortgage Bankers Association urged the Bush Administration and lawmakers to return to the negotiating table to hammer out a new solution.
"We hope Congressional and Administration negotiators will immediately regroup and find common ground upon which they can build a new agreement,” said MBA Chief Operating Officer John Courson. “Restoring liquidity to the credit markets is crucial to both stabilizing Wall Street and keeping the U.S. economy moving forward.”

HR 3997, the Emergency Economic Stabilization Act of 2008, failed on a 228-205 vote, with a number of Republican representatives voting against the measure as well as enough Democrats voting against to prevent majority approval. The Senate had been poised to vote on the measure Wednesday; the House will return again on Thursday following observance of Rosh Hashanah, the Jewish new year.

President Bush expressed disappointment in the vote and said the Administration would work with congressional negotiators in crafting a new bill.

"The credit crunch is not only preventing financial institutions from being able to access capital but is also preventing large and small businesses from being able to borrow money, money they use to operate their businesses, upgrading facilities and equipment and hiring and paying workers,” Courson said. “If businesses don't have access to that capital, they will stop growing and the economy will stagnate."