From: "Jonathan L. Kempner" mba_mail@mortgagebankers.org

July 23, 2007

Dear MBA Member,

In April, we wrote you to share MBA's efforts to combat the torrent of bad press and the potential negative policy proposals we were seeing as a result of the turmoil in the subprime residential mortgage space.  I would like to take this opportunity to update you on our progress.

On May 22, 2007, MBA Chairman John Robbins gave the keynote speech at the National Press Club's Newsmaker Luncheon.  In that speech, John made an impassioned defense of the mortgage lending industry as a whole.  While acknowledging that some lenders had made bad loans that might take a bit of time to work through the system, John's speech also provided important context that defined the scope of the problem and outlined the various causes and solutions for dealing with mortgage delinquencies.  The speech received widespread media coverage in print as well as on television and radio, positioning MBA as a credible source of information and commentary on what is happening in the mortgage markets.
 
MBA built upon the momentum created by John's speech to extend media outreach efforts throughout the country.  The Communications Department orchestrated a week-long media tour with MBA Chief Economist Doug Duncan that included visits with consumer, business and trade media in <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />New York City, and three days through the Midwest which featured stops in Detroit, Chicago and Cleveland.  Our primary messages were that specific loan products were not to blame for the increase in delinquencies and foreclosures, but rather that the causes were primarily local economic conditions (specifically in Ohio, Michigan and Indiana) and the recent slowing of home price appreciation in real estate areas that had seen a lot of speculators and investors (namely California, Florida, Nevada and Arizona).  We have been very pleased with the traction our messages have gained in the media. 

MBA has also started a paid media campaign in both print and radio designed to educate opinion leaders inside the beltway to the crucial role that mortgage lending, including subprime lending, has played in helping millions of American families build wealth.  MBA has also developed and distributed TV and radio public service announcements reaching out with important information and guidance to borrowers who are having trouble making their mortgage payments.  We have created a foreclosure prevention resource center on our consumer education website HomeLoanLearningcenter.com and are partnering with NeighborWorks America and the Homeownership Preservation Foundation to help borrowers in need with a toll free hotline and free credit counseling.        

In addition to exhaustive media outreach, John Robbins has been actively working the halls of Congress to make sure elected officials get the whole story, and not base their policy initiatives on media headlines and anecdotal stories.  He has met with dozens of members of the House Financial Services Committee and Senate Banking Committee to answer their questions and put the events in the subprime market in their proper context.  John has also testified before Congress no less than seven times in the first half of 2007.  John's efforts have made a tremendous difference as MBA is widely recognized for its willingness to educate members of Congress on the issues.  We are well positioned to contribute to the debate because of our rational and reasonable approach.

MBA has also initiated a major project to identify ways to improve financial literacy for youngsters in this country.  We are currently examining state and federal education programs and looking for ways in which we can make financial literacy a compulsory part of the high school curriculum.  In addition, Homeloanlearningcenter.com has been completely updated, expanded and translated into Spanish.

 MBA's Economics and Research team has been hard at work providing data and studies that allow MBA to be one of the most credible sources in the country for information on the real estate and mortgage markets.  Without this crucial information, MBA would not be nearly as effective in combating the negative media and political attention the industry has faced over the last year. 
 
And finally, and perhaps most importantly, MBA has just completed development of "The Simple Facts^TM" an eight-page information booklet to educate consumers and help them easily identify the potential advantages and disadvantages of each type of mortgage, and choose the mortgage that is right for them. The Simple Facts also includes a glossary of loan terms and a list of questions that every borrower ought to ask their lender.  The Simple Facts will also be available in Spanish, and MBA is launching a full-blown communications strategy to reach out to the Hispanic community.

We would like to encourage all MBA members to look at The Simple Facts and try to find a way to incorporate it into your loan processes.  MBA has put a lot of hard work into this document, and tested it extensively with consumers, and we are convinced it can be a vital resource for all your customers.

In the coming days and weeks you will be hearing a lot more.  MBA will host The Simple Facts on the HomeLoanLearningCenter.com website and will promote the booklet through paid advertising, public service announcements and an aggressive media relations campaign.  We are reaching out to legislators and regulators, opinion leaders and policymakers, consumer advocates and civil rights groups.  All this in an effort to get this document into the hands of as many prospective borrowers as possible.

We have just told you about a few of the initiatives that MBA is undertaking to help tell the complete story about who we are and what we do as an industry.  If you have any questions, comments or suggestions, please don't hesitate to give MBA Chairman John Robbins or me a call.    

Most sincerely,          
 
Jonathan Kempner
MBA President and CEO

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