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SIFMA protests against US foreclosure ban

Tuesday 12 October 2010 - by Will Henley

A proposed moratorium in the United States on all foreclosures would be “catastrophic” for the financial system, the Securities Industry and Financial Markets Association has warned.

Tim Ryan, president and chief executive of the association, said this week that if US authorities gave way to pressure for a moratorium on foreclosure processing it would do lasting "damage" to the wider economy.

Ryan said: “It must be recognised that the mortgage market, investors and the health of the economy are all inter-related.

“Increased uncertainty in the securitisation market would further constrain consumer credit and spending, dampening our already unhealthy economic situation.”

He said that mistakes in foreclosure processing could be corrected without a blanket ban.


Ryan continued: “It is imperative however that care be taken in addressing these issues to ensure that no unnecessary damage is done to an already weak housing market and, in turn, that there is no further negative impact on the economy.”


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