MBA Advocacy Update Apr. 25 2022

Bill Killmer bkillmer@mba.org; Pete Mills pmills@mba.org.

On Monday, FHA published Mortgagee Letter 2022-07, which adds to the agency’s COVID-19 Recovery Loss Mitigation Options a loan modification with a 40-year term used together with a partial claim. On Tuesday, MBA sent a letter to CFPB requesting the Bureau provide the industry with the statutory basis for its requests to obtain privileged attorney-client communications during supervisory examinations.

This week, MBA hosts two signature conference events: itsannual State and Local Workshop and National Advocacy Conference – including key industry constituent meetings on Capitol Hill.   

HUD Updates COVID-19 Recovery Options to Include 40-Year Modification 

On Monday, HUD updated its COVID-19 Recovery Loss Mitigation Options to add a 40-year loan modification and provide an exemption for loans backed by mortgage revenue bonds. The 40-year option is the last step of the loss mitigation waterfall and must include a Partial Claim. The policy must be implemented no later than 90 calendar days from the date of publication but may be implemented sooner.

• Why it matters: The ability to extend the term of a loan modification offers another important tool for servicers to assist struggling borrowers who need additional payment relief beyond the Federal Housing Administration’s (FHA’s) current COVID-19 waterfall. Additionally, this update aligns with current GSE policy and provides FHA borrowers with the same options available to borrowers with conventional and other mortgage types.
• What’s next: Comments are due 30 days from the date of issuance. MBA will be gathering feedback to submit a comment letter on the update.

For more information, please contact Brendan Kelleher at (202) 557-2779.

MBA Addresses CFPB’s Supervisory Requests for Privileged Information in Letter to CFPB Director  

On Tuesday, MBA submitted a letter to Consumer Financial Protection Bureau Director Rohit Chopra in response to member concerns about the Bureau’s efforts to obtain privileged attorney-client communications and attorney work product from non-depository covered persons during supervisory examinations. MBA has become aware of a concerning development whereby CFPB examiners have become more aggressive in demanding attorney-client privileged information during its examinations, including exams of independent mortgage banks. MBA believes the statutory underpinnings of such requests are lacking – particularly with respect to nonbank entities. Thus, MBA filed a letter with Chopra asking the Bureau to clarify what legal authority it relies on to demand or obtain privileged attorney-client communications and attorney work product from non-depository entities during supervisory examinations.

• Why it matters: As the Supreme Court has acknowledged, attorney-client privilege furthers important policy goals, including encouraging “full and frank communication between attorneys and their clients and thereby [promoting] broader public interests in the observance of law and administration of justice.” The CFPB’s efforts to obtain privileged material during examinations undermines these goals, which is concerning given the CFPB’s apparent lack of statutory authority to receive materials covered by attorney-client privilege. 
• What’s next: While it is unclear whether the Bureau will respond to the letter, any response could assist regulated entities, in consultation with their own counsel, in determining how to respond to such requests during an examination. 

For more information, please contact Justin Wiseman at (202) 557-2854 or Blake Chavis at (202) 557-2930.

MBA National Advocacy Conference April 26-27

The MBA National Advocacy Conference takes place April 26-27, in Washington, D.C. NAC allows you to connect directly with elected officials in our nation’s capital. Your story matters – share it with key policymakers as they consider and pass legislation that affects all of us.

• Why it matters: NAC gives you the opportunity to share your narrative with key congressional staff and decision-makers while networking with your colleagues from all over the industry.   
• What’s next: Share your experiences, your voice, and your passion for our industry April 26-27! And hear from Senate Banking Committee Chairman Sherrod Brown (D-OH); Senate Republican Whip John Thune (R-SD); National Republican Congressional Committee Chairman Tom Emmer (R-MN); key House Financial Services Committee member Madeleine Dean (D-PA); the host of CBS News’ Face the Nation, Margaret Brennan, and many other key leaders next Tuesday and Wednesday. For more information, click mba.org/nac.

For more information, please contact Rachel Kelley at (202) 557-2816.

mPower Moments: On Success and Being Your Own Champion with Rita Moreno  

In this episode of mPower Moments, mPower Founder Marcia M. Davies had the honor of interviewing the one and only Rita Moreno, winner of all four of the most prestigious awards in show business — an Oscar, a Tony, two Emmys and a Grammy. Tune into this funny, enlightening, and motivating conversation as Moreno discusses her journey and lessons learned along the way.

• What’s next: To watch more mPower Moments, click here.

For more information, please contact Marcia Davies at (202) 557-2707.

 Upcoming MBA Education Webinars on Critical Industry Issues

MBA Education continues to deliver timely programming that covers the spectrum of challenges, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming webinars – which are complimentary to MBA members:

• CONVERGENCE: Measuring Housing Affordability in America – April 25
• Introduction to Commercial Mortgage-Backed Securities – May 19
• New Fannie Mae and Freddie Mac Condominium and Cooperative Guideline Changes – May 24
• What Trends will Shape the Lending Space in the Second Half of 2022 – June 2
• Serving Loan Applicants with Limited English Proficiency – June 14
• Leveling Up Your Social Media Strategy with Paid Advertising – June 28

MBA members can register for any of the above events and view recent webinar recordings. For more information, please contact David Upbin at (202) 557-2931.