as an organization, industry in the future. i would like us to grow in three broad areas. first, the business of mba. real estate finance, it relies upon our borrowers and the state of the general economy. we live by the business cycle and some companies have died by it. it is the reality of the world we live in. the businesses that survive are nimble enough. mba must be able to do the same. ourl rely on the success of members and must prepare the best we can for the inevitable downside. us, mba has seen its challenges in recent years. through the strong leadership of my predecessors and particular through the strong leadership of my predecessors, and, in

ceo,cular, the former nba nbi state -- and the a stabilized. nbi is on the upward trajectory. i want to help accelerate that growth. i want to see nba posses of effectiveness, on display every day in washington dc, spread throughout the country. to the d.c. audience, we are to.ed donovan, richard, ed demarco, elizabeth warren, just to name a few. we have achieved a seat at the table and work hard every day to approve our image. however, the public at large remains skeptical. outside the d.c. elway, we still have much more to do. we must improve our image and relationship with communities

must be considered a reliable partner for borrowers to achieve the dream of building and growing businesses. we must go beyond d.c. and -- are aith our state -- are our connection. nba formeds year, its diversity inclusion committee. i want to build on the excitement the effort has created among our members. launched its, nba open stores foundation. paymentvides mortgage assistance and now rental payment assistance to families. i am proud of the progress we have made. she hasheard from deb become chairman of open stores.

-- she just had a challenge. we are 70% toward our goal and we need your help. please stop by the booth next to registration and help us reach our goal. finally, we must grow the culture of nba. what do i mean? look to your and right. we share a responsibility. we share a responsibility to be a significant contributor to the future of real estate finance in america. nba has a finance -- phenomenal staff. engagement is critical to the success of our goals. this is a pivotal time in real estate advanced. today will affect the next 100

years of our business and our nation. to watch choice reforms go by and except what may, or be decisive, active participants in the future of our bills -- business and our industry. activethe time for our engagement at all levels of our business. now is the time to advance the culture of nba as a member driven organization that can lead us forward to the next 100 years. these goals are bigger than one person and one chairman. to accomplish them, it will take each and every one of you. start wait here. -- start right here. start right now. place to become a more active member to not only embrace the change we know is coming. but to become vigorous leaders in effecting that change. nba provides us an outlet to be

heard at all levels of government. staff has a better understanding of regulations, the policymaking process, and policy limitation. we are the experts in the industry. we have firsthand knowledge of policies herethat can have on borrowers and the marketplace. i have seen and experienced how our participation can affect three years ago, at our first meeting, a broad constituency was represented. tofirst glance, there seem be little hope of coming to an agreement with so many players representing so many aspects of real estate finance. that was it. we had a singular mission. it took hard work and intense meetings.

it was worth it. we offered a cohesive letter, lobby on it, and the premium cash capture reserve account was ultimately removed from the recomposed role. we spoke with one voice because we had one vision. zestful -- successful. the industry and nba make a strong team and i need you to join it. your taken the first step today by her presence. attend as many sessions as you can to learn the opportunities for the future and how to be successful in this challenges that lie ahead. do not let your participation and when you leave d.c.. join the murderous action .lliance

do not rely on the person next .o you we need your voice added to that. when a public policy issue comes up that will impact your business, asked, how can i help you join a committee or task offer yourscar -- expertise. we can only leave behind our own legacy of leadership together. make a commitment this year to the future of our industry and borrowers. make a commitment to contribute to a growing, thriving industry. make a commitment to the nba providing one powerful resource to advance the future of our industry. thank you. [applause] [captions copyright national cable satellite corp. 2013] [captioning performed by national captioning institute]

it gives me great pleasure to which it is nba's is president. prior to assuming his position with nba, he served as the assistant secretary for housing and federal housing commissioner at the u.s. department of housing and urban development. he has more than 30 years of experience at -- in mortgage finance and has held several executive finance positions in sales, acquisition, investment, risk management, and regulatory oversight. he is well known through the industry and often quoted in the media. authority an industry on legislative and regulatory and -- issued. he received the national association of hispanic real estate professionals award. they distinguish themselves by their work in support of sustainable hispanic homeownership to improve the folly of life for hispanics in america. he currently serves on the hope

loan court board of directors and also serves on the board of nba open stores foundation. ladies and gentlemen, please welcome dave stevens. [applause] ♪ >> good morning. >> good morning. >> the challenge of doing a was that inight could not crack -- stop cracking up. i missed a party i wanted to go to and ended up staying too long. i was the straight man in that conversation. be here.at to before i get started, i want to make two comments. thank you for the kind introduction. you can tell by the presence onstage stage the sky will be and in step -- outstanding .hairman of the nba

is extremely committed. he will be a great leader going forward. it is great to see so many of you stand up. was a remarkable chairman. she brought extraordinary andgrity and credibility enhanced the perspective of the nba in washington that really helped us be viewed as a far powerful banking institution going forward. it is that kind of leadership we need over the long run. i want to congratulate you knows more people. they make up our officers. help this institution move forward. to talk about the 100

year anniversary of the nba and -- it'm thinking means means. 100 years. tois the one you look back the old photos of the original nba conference in chicago. . group of farm lenders who met you see the original founding and you fast-forward to where we are today. it is an opportunity to reflect on where we are going. that is what this discovery is today. in the offices, we put up old black-and-white photos in the past. i reflect on those when i think about incredible stunts we have taken in that 100 years. today, we are at a critical access point. it will determine what the american dream for a safe or

formal home looks like going forward, and what options americans have. it starts with all of you. the point that ej made cannot be made loud enough. if you do not participate, we cannot be as strong as we can if you dissipate together. past, great depression, two world wars, the growth of unique american industries created over the decades. extraordinary change. through all of that, lending has been made a critical link to opportunity for the chance for to own theirerican home and live the american dream. be importants to to every american young and old in every survey conducted. it is important we come together as a community together to take

of what wejust achieved but what we must overcome together. thismportance of conference being held in washington dc has never been more important. over the course of our history, the one thing we know is that balancing that difference between risk management and access for american opportunity has always been a difficult balancing act. we have gotten it wrong over the years. tipping too far in one way or the other. i will say today we are in such a moment. in correcting for the loose lending standards of the past access we have stifled to credit that is so important to drive the american economy. it is not any individual action. it is policymakers making hundreds of decisions that make sense in isolation, but in the our choking off access to credit in the

marketplace. one year ago, we call for policymakers to step back to reassess the balance and make sure there was a vision of how this society should look going for. we asked them to coordinate so we would know the pathway of collective instruments inside the beltway of washington dc, so we could understand where the light at the end of the tunnel would be. industryithout our expertise, it would be difficult to get the markets going again. one year ago, we want the victims of the confusion that thed be created would be very same american families these rules were trying to protect. your goal, we were calling for leadership. unfortunately, i believe our calls have gone relatively unheated. i stand by here tuesday -- to say, in the politest way possible, enough is enough.

[applause] the overcorrection and conflicting policies coming out of washington affect not just the market we serve but the economy broadly. i stand here overlooking over confusion. housing is 20% of the gross kwacha basised and points of gdp without housing the economic recovery stands in peril. well the damage that can be caused by excess. i served in the administration working on a team working on this recovery at the time. at that time, we had four clear objectives. one was to stabilize the debt

stabilize the financial system so capital would continue flowing. everys to protect responsible family, as many as possible, and keep them in our homes. third was to hold the egregiousns, the most violations accountable for any actions done illegally and morally. rules right get the going forward we would have a functioning system and correct any mistakes of the past. the resolution was swift but not perfect. up.ne who gets and defends everything was done to deal with the crisis, owning the responsibility for the outcomes going forward. the efforts were no -- were noble and many of them. some worked well and some less well. to be clear, the specific programs and policies all have limitations. fory, it is critical leaders to recognize not only the successes of what happened, but also the shortcomings.

if we do not recognize the shortcomings and stay wedded to those decisions, we will not move forward and create a home forrship society that works the future. file -- policymakers have not turned the page. collectively, they continue to clamp down on risk, run a pricing on government lending, a actions enforcement with no end in sight. this may have made sense in in 2010, but today, it is impeding economic recovery. donovan's leadership to deal with the fallout, we took swift action and raised premiums and changed minimum credit score requirements and did a variety of policies. all of that made sense at the time. ,roposals in congress today extraordinary provisions that will curtail access to too many families to credit access simply because the risk of a mistake, any mistake, is simply too great

if these bills go through as is. mortgage insurance premiums were raised to shore up the fund. loans today are expected to produce extraordinary profits. we call it negative subsidy. if you look at the study that portfolio,ut on the the 10-12 books are extraordinarily profitable. is the pricing of the mortgages in the new books disproportionate to the actual risk and is it impacting borrower access to homeownership? the huge profits, in context with this new regime being presented on capitol hill, will, at the expense of the very families it was designed to protect in the first place. it is gone too far. we need balance. rigid oversight is out-of- control. regulation is clearly cutting off perfectly good transactions.

the gsc has all but eliminated low down payment transactions for an average credit score borrower. access to a homeowning at a reasonable price is difficult to attain using a loan for an average credit score or borrowing. , adverse market fees, mortgage insurance, all of the additions have produced a report says,t a applies no risk-taking. today, they are virtually printing money. profits are sucked entirely into the treasury and this is all coming at the cost of homeownership. this is a classic case of overcorrection and it is gone too far. it is not an exaggeration. there is data to support this. i want to give you one variable

just released that we shared with a group of ceos in a closed-door meeting yesterday. if you look at purchase loansctions, conventional , not johnnie mae, the denial rate of purchase applications was 51% for 2012 african-american borrowers. half of all african american borrowers were denied access to purchases on actual applications , for conventional, non-jumbo mortgages. some people should not have been able to borrow for mortgages. no doubt. part of the blame clearly has to be laid at the feet of our industry. not solely but part of it. policymakers have gone too far. we are shutting out many in the very communities that may be working hardest to defend. i want to be honest. today, we faced our toughest challenge.

stiflinga patchwork of regulation as far as the eye can see. if lenders make one wrong move or even one right move in the process, they can be caught up in a confusion based web of enforcement actions. indemnification's on any error, class action, settlements, state attorney suits, trouble damage penalties from false claims act. the endless go on? barrage of legal actions creates a serious disincentive for any of those looking to provide credit to a borrower on the market. regardless of compensating factors, the impact of tightening is impacting the very access to credit to the same underserved populations the government programs were set up to serve in the first place. there at risk of all of suffering under the rulemaking regime of restricting rent -- lending only to the most strict -- squeaky clean borrowers in

america. that is fewer and fewer are worse. it is going in the wrong direction. fha was always there for qualified borrowers who needed a little boost to get into homeownership. is first-time homebuyers. minority bars cover 30% of the purchase activity. over half of african-american eight -- hispanic borrowers used it in 2012 for their purchase transactions. what is the bottom-line? as we look out over the country passes real estate policy, we have to ask, is it doing the job it was set up to do you have a series of post-crisis corrections turned into actions to the destined -- detriment of responsible and qualified american families. do not get me wrong. protecting the taxpayer has to be a serious priority. you can never let it correct to where it was before. that has to be key in any policies we have going for. the goal cannot be zero risk.

zero risk means zero lending. that is going too far. we are a long way from the right balance. it is hard to see the light at the end of the tunnel. every headline makes me question, when does this end? sometimes i wonder if policymakers collectively even know what they are doing as a collective organization. conflict.es speeches out there are being made by leaders of the country that call to reduce red tape, offset by the ability for pay requirements and extraordinary litigation risk should you decide to take that risk. -- risk. calls for risk retention on only capital transactions. significant cost to the same private capital mortgages that could even be insured by a government agency, yet, the government agency loans are exempted from capital.

private capital loans are having to put capital aside. true moment ofa reckoning, especially when it comes to the housing and recovery. lending has slowed and purchase markets need all the help they can get. we are five years post-crisis and too many countless innocent would be borrowers are caught in the aftermath all because washington will not trust lenders. they will not trust us to make fact-based decisions without countless strings attached, second-guessing, and severe litigation risk and penalties should these be tried in courts across the country. we called for sanity. we called for a housing policy coordinator who would simply ensure the regulators got together and talk about the rules and regulations implemented and simply to discuss and identify points of conflict so at minimum there would be a recognition of coordinated overlaps that it has not been done and confusion continues. it is fitting we are here today

so we can be heard loud and clear. we are here to call on palm -- policymakers collectively for the impact of roles and enforcement actions because at the end of the day, we are putting the american dream at risk. my hope is maybe this time we could strike a balance together and do some in constructive together in the process. it is a choice policymakers have to make. if we do not make it right, we will not result -- returned to the time of solid prospects for homeownership. hispanic americans, first-time homebuyers, single parents, we end up creating a perfectly risk-free safe and sound system. that will be the system for those who needed help the least. no doubt there is conflict. if this is hurting the private capital. policymakers can give lip service because actions are clearly working against that

return. i am asking one more time for the administration to please pay attention. help us protect the american dream. let's get this right. on our call for coordination and transparency and policymaking. a national policy coordinator who brings regulators together and identifies past overlaps already created by rules already introduced to the marketplace, and work at a constructive basis to identify those going forward so they do not create unintended negative consequences. our call for greater transparency. freddie mac and fannie mae, the industry needs to have an opportunity to weigh in on major policies before they occur. drop loan limits. all that does is create a vacuum that leaves nothing but 43 in the appendix q. we need to get the bounces right in coordination with each other. this industry come

together and support five transition steps we have laid out. it is a veil on our website and they are available at the conference, that will ensure a smooth transition to a sustainable and vibrant and inclusive secondary market. it has never been more important to work together. tois our time here this week rally our influence behind smart policies that will fuel the housing recovery instead of holding it back. we know the real estate finances and can be an ally if policymakers work with us rather than holding us back. inis time for leadership washington and common sense and cooperation to return to the government. it is time for policymakers to work with experts in the industry. what is most important perhaps is for us to stay together as an industry. if we do not stay aligned, if we splinter, outcomes will only get worse. a loud and powerful voice

speaking as one, defending the american dream, is what will make our efforts more successful. we are working hard on your behalf every day at the nba. our injury -- energy never wanes in our effort to fight the fight to protect the american dream of a safe and sustainable home. we are the nba. together, we are 100 years strong. we have all of you out here, this diverse set of stakeholders, all involved working to defend the opportunities for futures to come. let's not let them down. thank you. [applause] now, to lead off the next set of speakers for the conference, it is a great pleasure to have my and an absolutely

amazing individual, secretary shaun donovan. was sworn, 2009, he in as the fifth u.s. secretary for housing and german development. -- urban development. fifth. ok. in just over four years, he has had a variety of the combatants. he has reaffirmed a commitment to building strong, sustainable, and inclusive communities. prior to his appointment by president obama and the senate and confirm to become secretary of housing, he was commissioner of the new york city department of housing preservation and development. he created and in the -- implemented the housing marketplace plan. it is the largest municipal affordable housing plan in the nation's history. he also work in the private sector and was very involved in finance and affordable housing. he was a visiting scholar at new york university. he researched and wrote about the preservation of federally assisted housing.

he was an active member of the nba and served on the multifamily housing committee and acted as commissioner during the clinton and bush transition. i will tell you having the opportunity to work with sean was something i will always cherish in my life. he was one of the most sincere and hard-working and committed activists for good positive outcome going forward. it is greatly appreciated he takes time too, just this body at so many conferences and other events. without further ado, let's please welcome with a loud applause secretary shaun. [applause]

>> let me thank secretary of state john kerry for the warm introduction. i'm sorry. let me thank dave for that incredibly warm introduction. heard, dave is someone who tells it like it is. he did remarkable work in service to his country at a time of great crisis. he continues to serve his country well by telling us in washington what is really happening, what we need to focus on, and it continues to be a tremendous partner and leader for all of you. apologize that the real shaun donovan could not be here this morning and so i, his father, will be filling in today. sean is still trying to find the easter egg roll over at the white house and has not been able to. i am sure he will get over here

as quickly as he possibly can. remarks.ad his by reallybegin focusing on how important this organization, the mortgage -- mortgage bankers association, has been in this time of crisis. you play a critically important nation,our economy, our and, it is such an honor to be here this morning to kick off your annual conference, especially as you celebrate this milestone anniversary. members of this organization have seen extraordinary wings, but it is hard to imagine any time quite like the last five years. of 2008, we saw the lehman brothers collapse. sitting inr forget

the famous bullpen mike bloomberg set up at city hall in new york. we were watching as a giant television screen he had set up, and usually, on normal days, ticking on that screen would be how many potholes had been york, in the city of new how many lights were out in various places, all the major metrics he would measure for how the city was doing. very bloomberg. on that day, the entire screen was focused on cnn. on the floor of the house of representatives, and we were watching as the vote was being taken on the first financial rescue package. at the very moment, it became clear that vote was going to fail. mike bloomberg walked into the bullpen and said four words i will never forget.

"the world is ending." indeed, the events of that time led to the worst economic crisis any of us has seen in our lifetimes. when president obama took office in 2009, the housing market was in freefall. home prices have fallen nearly 20% from the year before. the largest one-year drop ever measured. roughly 3 million borrowers were seriously delinquent, construction projects and plans came to a halt, causing the industry to lose 100,000 jobs a month. across the board, we saw dramatic declines. of course, these drops represented more than shipping spreadsheet.s on a they represented people's lives, savings, and struggles. and i tookesident office, we set in place a number of priorities which still guide us today. one, to provide immediate assistance to those in need. two, to work with public and

private sector partners to strengthen the housing market and help fuel an overall economic recovery. three, to ensure a crisis of this magnitude never happens again. the firstrt with goal, providing immediate assistance to those in need. spoke at your annual conference in 2011, i told you about a number of initiatives we had undertaken with your partnership to help families and heal the market. ithough the crisis is eased, am proud to report we, together, keep pushing for progress. wek then, i told you that had helped five point one million responsible families stay in their homes through mortgage modifications. today, that number is over 7 million. back then, we had just launch harper 2.0. in the time since, the number of homeowners that refinanced to fromffort had soared

400,000 to 2.8 million as of july. i also mentioned our neighborhood stabilization program, which addresses the foreclosed and abandoned properties that often hold back communities rebuilding. $7 billion has gone to neighborhoods in all 50 states to refurbish those properties, turning the light into progress. thosee than 70% of neighborhoods, vacancies are down and home prices are up, compared to their surrounding neighborhoods. the most trying times, the federal housing administration stepped up to keep capital flowing and stabilize the market. taking on such a big role carried costs. mandatoryly took a appropriation of 1.7 billion dollars to close out fiscal year 2013. let's be clear. does not reflect the mmi

fun posses current health. this was an accounting transfer. it has not yet caught up with reality. it is based on the housing market more than one year ago and does not reflect policy changes we have made since then. and portfolio resulting in dramatic improvements since this time last year. delinquency rates, a 20% drop in foreclosure starts, a 26% improvement on recoveries, and more than a 90% improvement in early payment defaults. fha has nearly $15 billion in mored assets, including than 17 billion added in the fiscal year that just ended third it continues to provide a wide variety of qualified buyers with the opportunity to become homeowners. with these efforts and more, we are sending a clear message that even as the financial crisis becomes more distant in our

nation posses rearview mirror, the obama administration posses commitment to recovery will never waver. in the larger picture, these actions, combined with leadership like yours, has helped quite a comeback story since 2000 and eight. sales and prices are up. construction is a. optimism is up. so many vertical trends are going in a positive direction. i want to thank each and everyone of you for the role you played in this growth. you have had to be creative and resilient in the face of incredible challenges. i am sure you will continue to be, as he faced challenges that lie ahead, whether a decline in the refinancing business, or the work we have to do together to make sure credit remains available to all responsible americans. through it all, you have more ton earned the right highlight your strengths with the conference theme this year, 100 years strong.

we are determined to work with you to ensure the best years are ahead. buildingobviously key crops to achieving the goal, and powering families with the tools they need to succeed in today posses housing market, making it easier for single-family lenders to get europe polity products to those ready to buy, and to multifamily letters supporting your work to develop quality and affordable housing. we are doing this in a number of ways, first, working to give families the tools and support they need to give the best choices in the increasingly complex financial system. we know a significant cause of the crisis was that many buyers did not know what they were getting into. in the last four years, housing counselors have worked with more than 9 million families, both in the pre-purchase and post purchase faces, phases, by

giving access to reliable and unbiased information, they will make better decisions and the entire market will benefit. only one critical component to successful homeownership. another factor, and perhaps the most obvious, is putting more money in people posses pockets. that means jobs. the good news is that american businesses have been growing for 43 consecutive months, resulting in 7.6 million new jobs. theudget talks evolve over next few months, the president will continue to fight for investments that will grow our economy and create economic opportunities. we need your help to make sure we get a sane resolution to our budget challenges in the coming months. while doing so, we are undertaking other at -- efforts to relieve financial pressures facing the american people. literally just a few thousand dollars could make a huge difference in helping families

secure sustainable housing. that is what makes the affordable care act so important to all of us in the housing community. two particular reasons. one, the less the american people have to spend on health insurance, the more they will have available for housing. two, we all know a sudden surge in medical costs can lead to families missing payments and losing their homes. is the first few weeks of enrollment have seen an enormous interest in affordable health insurance. 700,000 applications for health insurance have been submitted nationwide. unfortunately, as we have all seen, the website has not been prepared to handle that volume of interest. will getdent said it fixed in the short term and i know he means business. in the long term, we know families will have access to affordable health care and the aca is paving a path that will save lives and money and that is good for all of us.

that will be good for our pocketbooks is immigration reform. on the most basic level, we know the system is broken and needs to be fixed. lastly, the president once again called on congress to pass copperheads of reform. it is good for our country and good for the housing market. homeownership has long been viewed as part of the american dream. one of the outcomes of fixing our broken system is a stronger housing marketplace. 2010, it accounted for 40% of new homeowners nationwide. that is a lot of demand for your products and services. expanding the circle of opportunity for those who are ready to own creates incredible benefits. the president stressed it is in all of our interests to get this done. let's do it now. interest ton our shape an environment that encourages good lenders to get their quality products to

creditworthy families. unfortunately, as you know better than anyone, and as dave talked about, one of the major obstacles blocking a full housing recovery is regulatory uncertainty. i understand. having been a lender, i cannot imagine what it is like sitting at your desk back in your home state as you watch the federal government respond to the crisis. we have taken a lot of steps that were, in my view, necessary to restore confidence and an sure many of the bad practices that caused the mess were limited. one of the outcomes is that too often, the rules of the road were not clear enough and that led to a tightening of credit. according to the federal reserve, from 2000 722 thousand 12, mortgage lending to borrowers with credit scores over 780 fell by one third. loans to those with scores between 620 and 680 fell by 90%.

of qualifiedot buyers out there being rejected. my colleagues and i have been working with a wide variety of stakeholders, including many of moving simplify things forward. case in point is the qualified residential mortgage role, and as all of you know in august, six federal agencies proposed a revised version of q r m to make it equal q m. result of thect feedback we receive since the first proposal in 2011. you told us it needed to be refined and we listened. now our rule avoids greater complexity and overly restricted down payment requirements that could serve only to exclude creditworthy borrowers. some of our critics call this a dilution of our rule, but as you know, q m itself is a strong measure. i am sure the director will confirm later in the conference. we are confident this will find the right balance between response ability and opportunity

moving forward. another example of proper coordination is hud's qualified mortgage role, which builds off the qualified mortgage definition set forth in the final rule. be patchedthe cfd defining loans that meech -- meet policies as qualified mortgages and it increases the safe harbor resumption bound f boundary to account for fh mortgage premiums. i thank you for your engagement on the issue and we very much look forward to continue to listen to stakeholders like you so we get these rules right. another area where we are eliminating confusion is in the way fha does business. partners like you have told us we need single-family documents that are easier to understand and navigate. with over 1000 mortgage letters, housing notices, handbooks, and other materials, we could not agree more and are taking

action. we committed ourselves to having a single and reliable source of policy. that source is the new single family housing policy handbook. section of the handbook will be available for your review tomorrow. the language will be clearer. you will be able to find what you need quicker and the process will cause you fewer headaches. we want to make it easier for you to do your good work and we also want to hear from you and hear your feedback on the handbook as we shape it into a product you could really use. that is why we are changing our process to support a review for formalaft section before publication. once we have got it right, you will be given sufficient implementation time to incorporate it into your business. i urge you to go to hud.gov to check it out when it is released tomorrow. in the meantime, we made real progress with you and other stakeholders on our perspective quality assurance framework. we want to ensure fha has a

strong and consistent but also transparent and timely enforcement process. our primary objectives are to ensure fha has a quality insurance approach that does not hinder or discourage lending to targeted populations, and to align with you, our business partners. promoting alignment and reducing uncertainty will enable access to credit to prospective homeowners underserved by private capital. we will or ilitch and lee and urgently to get this done with you. finally, for multifamily lenders, i want you to know the administration remains firmly behind the low income housing tax credit as the country begins to discuss tax reform. all of us know how important a test credit has been in increasing the supply of affordable housing. that is why the president and i again,ned it time and most recently calling on congress to continue to support this tool as part of the

president posses housing plan. i urge you to continue to do the same by letting congress know that not only do we need to keep the task credit, but we need to expand it in order to better address the needs out there and provide more flexibility for the credit. all of these steps to improve conditions for multifamily lenders, single- family lenders, and buyers, will go a long way in accelerating our housing markets growth. in addition to recovery, we have got to ensure a crisis of this magnitude never happens again. all of us in the administration have already been working toward this important goal. the president is eager to take the next steps toward reform. will requireis action from congress. i know what you're all thinking. after the recent set -- shutdown, what makes shaun donovan crazy enough to think there could be movement in the area. when you look at this shutdown and set your sights passed all

the politics, nobody one. it is clear that while the brinksmanship does not pay. moving forward, i am hopeful that partisanship will give way to partnership. and that there is a chance to do big things over the next few months. historically, housing has been a source of common ground. president truman and senator taft worked together on housing act of 1949. and brooke and walter mondale worked together to produce a landmark housing legislation decades later. similar bipartisan efforts sprung up in 2013. earlier this year, the bipartisan policy center came out with a report that helped set the stage for a grown-up conversation in washington dc about housing finance reform. i am encouraged by the bipartisan progress we have seen in congress on this issue already. it is time for all parties to finally take -- make reform a

reality. in august, the president outlined a series of principles he believes should be at the core of housing finance system of the future. three of which i want to highlight today. the first is that private capital should be at the center of the system. currentnow the conditions where government guarantees more than 80% of mortgages through fannie freddie and fha simply unsustainable. the risks and rewards of mortgage lending have historically been in your hands, the private sector. and should continue to be in the future. how do we attract private capital back echo as i said, one crucial step is undressing the uncertainty in the marketplace. why steps like our proposed to rm rule are so important. they go a long way in ending the uncertainty out there and increasing your participation in the market. transition, this reform legislation should have flexibilities that will allow for private capital to be creative and innovative. leading to a more efficient

market for all. by porting private capital in a first lost position, we can make sure taxpayers are never again on the hook for bailouts, which is the president posses second presidentnt posses -- -- long, the, for too motto has been, heads we win, tails, the taxpayers lose. theooth layer of assets, people, their ideas, the infrastructure, as part of government posses new limited role that should be explicit and not the implicit role that fannie and freddie had before. as we make this transition, we remain firmly focused on doing it a what -- in a way that does not disrupt credit market in the short term so our recovery can continue. the third reform outlined by the president is ensuring access to safe and responsible financing like the 30 year fixed-rate mortgage.

doing so will increase confidence of long-term investors in mortgage-backed securities so products will be offered in good and bad times. this also means shaping a competitive marketplace by giving community banks and smaller lenders the same access to capital markets as the big tanks. five years after the financial collapse, it is time to get this and other critical aspects of housing finance reform done. let's all make our voices heard with the goal of getting a bipartisan bill through the senate this year. it is time to put politics aside and put housing finance reform at the top of the nation posses agenda, where it belongs. today, i thinkre it is important to look back and honor the extraordinary contributions the nba has made over the past 100 years. you made lasting contributions to communities and our nation and i commend every one of you.

now, we also, in addition to looking back, need to look forward. in so many ways, the next 100 years will be built on the foundation we shape today. we have got to work together to ensure this foundation embodies all of our greatest hopes and ideas. that means continuing to help struggling homeowners turn the page on this painful chapter. that means giving families the knowledge they need to be successful homeowners. that means giving families access to affordable health insurance and reforming our immigration system. that means eliminating uncertainty so that credit can go to millions of tires who are ready to own. getting housing finance reform done to ensure a crisis like this never happens again. of these components can help shape a solid foundation for the future. it, we have got to make happen.

despite all that has occurred here in washington recently, and in our economy over the past five years, i still believe we could get the things done in this country. we could make the housing market and for both the industry consumers. we could shape a better and stronger america for all. i look forward to working with the mortgage of bankers association to make these goals a reality. thank you. thank you and congratulations for your 100 year anniversary. thank you. [applause] please give a warm welcome to in the com posses president of financial services. ♪ [applause] >> thank you. good morning, everyone.

pleased to sponsor this morning posses session and help kick off nba posses 100 anniversary convention. business process outsourcing, consulting, learning, and technology solutions provider for around the world. we access in the conn's platform driven solutions and consulting services to improve profitability, and achieve immediate return on investment. in the mortgage business today, companies are specially challenged by greater regulatory compliance, and quality control. thrive in thisto new, tough, dynamic environment. -- isom isn't -- helping helping them do that. adopt management solutions, and efficiencies. our mortgage learning solutions through the acquisition of

mortgage you helps manage compliance and outsourcing solutions create a variable cost model for all sizes. these mortgage learning and outsourcing are the cornerstones of a business model to deliver relevant solutions. our guest this morning is no stranger to the financial services field. many people look at him for guidance and insight into the marketplace today. he serves as chairman and a corporation. he is the founder and chairman of investment management companies focus on financial service opportunities. he was previously the prime originator and founder. andrded as an expert

innovator in both mortgage and capital markets, he has served on the national association of homebuilders roundtable continuously since 1989. in recognition of his dedication and lifelong achievements in the mortgage industry, he was inducted into the national housing hall of fame. he is also a recipient of the lifetime achievement award given by the fixed income analyst society. he was subsequently inducted into the fia as i hall of fame for outstanding practitioners in the investment of the analysis of fixed income securities and portfolios. in november 2004, business week magazine named him one of the greatest innovators of the past 75 years. in 2005, he achieved the .istinguished industry award ladies and gentlemen, please .elcome

[applause] ♪ >> good morning. it is a pleasure to be back to help celebrate the 100th year anniversary of the nba. i have been a proud member of this organization for a very long time. i am happy to share my thoughts about where we have been and where we need to go in the future. havete what some of you been chuckling about, no, it is not true i have been a member for 100 years. i did not attend the first meeting in 1914. close. not quite. have had the, i good fortune to be active in this industry for more than 40 years. in that time, it is been my privilege to know and work with some of the great leaders of this organization. , felix peck, rob

cap, as rock -- as well as our former president. they defined harb -- hard work, leadership, and the leadership that the is organization. i would be remiss if i did not mention my very good friend david stevens, who has done its roofing job in difficult circumstances. while so many industries and professions have been replaced or displaced over the last 100 years, this industry remains vitally important despite the challenges of the last few years. housing remains critically important. it is important to stable communities for accumulating wealth and propelling our national economy. even though the crisis ended in 2009, we are very much in the mists of redesigning the housing and mortgage finance system of

the future. david's comments. getting it right will require experience, insight, and division. almost seven years ago, i participated in a housing forum i expressed some concerns about what i saw taken place. i said at that time the transparency of the past was being obscured by a massive lift ration of new products and as a consequence, it was difficult or investors, institution otherwise, to quantify the value and the risk of the opportunities available to them.