Federal Housing Administration Commissioner David Stevens urged mortgage bankers to become more engaged in Obama Administration programs designed to stop the bleeding in the housing market and embrace regulatory and legislative changes to boost consumer confidence.
"Frankly, I'm surprised that the mortgage industry has pushed back so hard" against the new Consumer Financial Protection Bureau, the reformed Real Estate Settlement and Procedures Act and other remedies designed to allow borrowers to make more informed loan choices, Stevens said at the Mortgage Bankers Association convention in Atlanta.
While the lending process may be somewhat slower and more drawn out because of the changes put into place to protect consumers, he said, that "is probably a good thing and something lenders should embrace."
"The vast majority of consumers want to make responsible choices for their families, but they can't do that unless they have all the information," Stevens told the MBA.
He said that the success of the Administration's efforts to address the housing crisis depends on participation by the private sector, which, he added, has been half-hearted at best. Calling the lack of engagement "a mistake," he said the industry faces "an enormous trust deficit that will only grow larger with each new report" about a family losing its home unless it steps up to rebuilt confidence in a business that has taken more than its share of black-eyes.
Virtually all the next generation of homebuyers knows is the collapse of the housing market, with exploding adjustable mortgages, predatory loans, foreclosures and, now, robo-signing, he said. "If we scare too many Americans away (from ownership), it will have an impact (on the mortgage business) for years to come."
