Mortgage Association Can't Pay Own Mortgage

One can't help but chuckle at the irony, but according to recent reports, the Mortgage Bankers Association is having trouble paying the mortgage on its new building in Washington.

When taking out a loan for the building, the MBA failed to anticipate the present crisis in the credit market, with loans higher than ever. The association will now have to pay millions of dollars more than they would have just a year ago, when they signed a contract for the $100 million building.

Chairman of the association, Kieran P. Quinn remained upbeat by defending the transaction as prudent in the long run, "Anytime is the best time to buy," he said. "Over a 10-year horizon, the purchase looks great."

It's been a torrid 12 months for the MBA, which saw a 17% decline in its membership causing it to predict a 10% to 15% decline in revenue as a result. It's also been forced into laying off some of its employees and recently lost two senior vice presidents to other jobs in the real estate industry.