In testimony before the U.S. House of Representatives today, MBA chairman John M. Robbins offered a surprisingly strong and personal take on the recent troubles in the subprime market, going so far as to admit that the lending industry made a mistake in underwriting thousands of subprime mortgages during the recent housing boom.
The MBA chairman's collective mea culpa represented a stark departure from the trade organization's earlier positions, which largely characterized troubles in the mortgage market as within industry expectations.
â€œWhile we must ask what lessons we should learn from our mistakes, it is equally important for those in positions of authority to help current home owners stay in their homes,â€? said Robbins.
â€œWorking together, I suggest we must accomplish three things. We must stabilize the subprime mortgage credit system; provide assistance for homeowners facing foreclosure; and finally prevent this from ever occurring again."