Financial Services Trade Groups Issue Statement on Subprime Lending

WASHINGTON, D.C. — Six financial services trade groups released a statement yesterday expressing their commitment to strengthening subprime lending standards. The American Bankers Association, America’s Community Bankers, the Consumer Bankers Association, the Housing Policy Council, the Financial Services Roundtable, and the Mortgage Bankers Association signed off on efforts in support of stemming lax underwriting standards and help borrowers restructure loans.

“Our trade associations look forward to working with all market participants, the regulatory agencies and Congress in addressing the issues in the housing market and preserving the opportunity of homeownership for all Americans who seek it,” the statement said. They also call on federal and state regulators to provide “enhanced consumer protections without limiting the availability of homeownership to credit worthy borrowers.