Monday, February 8, 2010
Like millions of American households, the Mortgage Bankers Association found itself stuck with real estate whose market value has plunged far below the amount it owed its lenders. But the trade group for mortgage lenders is refusing to say exactly how it extracted itself from that predicament. What MBA bought for $79m in 2007with a 'mortgage' from PNC for $75m, it is selling for $41m. MBA CEO said last year that he believed mortgage borrowers should keep paying their loans even if that no longer seemed to be in their economic interest. He said paying off a mortgage isn't only a matter of personal interest. Defaults hurt neighborhoods by lowering property values, Mr. Courson said. "What about the message they will send to their family and their kids and their friends?" he asked.