The Mortgage Bankers Association is lobbying federal regulators to omit protections for homeowners facing foreclosure from the new mortgage lending rules currently under development in Washington, D.C., the Wall Street Journal reported. A new requirement that would require companies issuing mortgage-backed securities to retain 5 percent of the risk is in the works, but under discussion is whether standards for the servicers collecting home loan payments should also be included in the same set of rules. [more]

With foreclosures nationwide up about 35 percent over a year ago, industry experts are trying to stymie the flow of mortgage holders who are walking away from their debt obligations. In this video, John Courson, president and CEO of the Mortgage Bankers Association, told the “Today” show that there are numerous risks involved in strategic defaults, particularly to the broader economy. “The consequences can be dire,” Courson said.

Home foreclosure rates are rising in luxury markets, according to data from Zillow.com, making waves in the mortgage lending community. As John Courson, CEO of the Mortgage Bankers Association, told CNBC, the key issue in this crunch is whether credit availability among lenders will improve. “It’s clear that we are seeing proposals that are probably more dramatic … as we’ve seen since the 1930s when the banking system and the financial system in our country underwent massive changes,” Courson said. [more]