CREF Policy Update Feb. 15: Broeksmit Defends Nonbanks; MBA Updates Property Inspection Form Ratings Definitions; Rent Control Fight in Washington
Treasury Secretary Yellen Testifies on Capitol Hill; Broeksmit Defends Nonbanks
Treasury Secretary Janet Yellen appeared before the House Financial Services and Senate Banking Committees last week to discuss the Financial Stability Oversight Council’s (FSOC) Annual Report to Congress.
Secretary Yellen’s testimony and responses to questions centered on last year’s bank failures, the Basel III Endgame capital requirements proposal and other proposed banking regulations, commercial real estate risks, and FSOC’s nonbank systemically important financial institution (SIFI) designation guidance. A full summary of the hearings can be found here.
What they’re saying: In a press statement in response to commentary made on nonbanks, MBA President and CEO Robert Broeksmit, CMB, said, “Consumers win, and the real estate finance system is the healthiest, when multiple actors utilizing a range of business models and strategies compete on a level playing field. If FSOC elects to impose higher costs across the system, it will only burden prospective homeowners with higher prices and less choice at a time of constrained housing affordability.”
MBA does not believe nonbanks – individually or as a sector – pose a systemic risk to the entire U.S. financial system and highlighted these concerns in a July 2023 comment letter.
Go deeper: Republicans and Democrats also expressed concerns about the potential risks posed by artificial intelligence (AI) to financial stability and consumers. To a lesser extent, other issues discussed included payments, digital assets, cloud computing, cybersecurity, tax policy, the Securities and Exchange Commission’s (SEC) climate disclosures proposal, and the potential for the housing GSEs to exit from conservatorship.
What’s next: MBA will continue to monitor for any additional information that FSOC and the Treasury provide to the two committees in their follow-up communications to lawmakers.
For more information, please contact Rachel Kelley at (202) 557-2816, George Rogers at (202) 557-2797, Ethan Saxon at (202) 557-2913, or Bill Killmer at (202) 557-2736.
One Form for the Entire Industry: MBA Updates Property Inspection Form Rating Definitions
MBA and an advisory committee of members, servicers, lenders, correspondents, mortgage bankers, Fannie Mae, and Freddie Mac recently agreed to adopt Fannie Mae property inspection rating definitions and have rebranded them as the MBA Ratings Scale. Effective January 2024, all Fannie Mae and Freddie Mac inspections must use the updated MBA Standard Inspection Form.
An MBA Property Inspection Reference Guide and MBA Standard Inspection Form will be available for download to all members by clicking here.
The Guide is intended to provide information regarding due diligence for property inspections, completion of the inspection form report, as well as some helpful tips regarding the inspection process and review of the final report. The Guide is not intended to be used for instructional purposes, casualty losses (manmade or natural), condemnations, origination, due diligence, or special servicing/workout situations. However, much of the information contained herein may also apply to those circumstances.
What’s next: Join MBA’s Asset Manager Peer Group and Servicer Council to participate in ongoing conversations regarding property inspection issues and processes.
For more information, please contact Kelli Burke at (202) 557-2742 to join the Property Inspection Advisory Committee, and Jacky Salazar at (202) 557-2746 to join the Asset Manager Peer Group and Servicer Council.
Washington Rent Control Legislation Update
MBA has been actively opposing rent control efforts in the state of Washington. In coordination with the Washington Mortgage Bankers Association, a Mortgage Action Alliance Call to Action was issued on Monday, calling on Washington members to contact their Representatives to oppose H.B. 2114, which would prohibit all landlords in Washington from increasing rent by more than 7 percent during any 12-month period.
The state’s original rent control threat was previously stopped in a Senate committee, which caused advocates of rent control to shift focus to HB 2114 in the short time span left in the state’s session calendar. HB 2114 includes caps on how much rent can increase, liabilities for violating rent increases, and termination of rental contracts with notice of increases.
Why it matters: Some state policymakers have embraced the false narrative that rent control, or capping rent increases, is an effective tool in addressing housing affordability issues in their communities. Instead, it creates a barrier between property owners and tenants while discouraging property owners from maintaining or upgrading their properties.
Go deeper: This rent control legislation will remove incentives to develop new affordable housing units, leading to higher housing costs in Washington’s rental housing market. It would also negatively impact the value of those units and simultaneously limit the number of property transactions in Washington.
What’s next: MBA will continue to work with the Washington Mortgage Bankers Association and industry partners to oppose rent control.
To take action click here and for more information, please contact William Kooper at (202) 557-2737 or Liz Facemire at (202) 557-2870.
REGISTER: MBA’s National Advocacy Conference on March 19-20; Separate CREF Track!
Join us in Washington, D.C. to meet with key policymakers, network with colleagues across the industry, and hear from policy experts on the topline issues impacting the industry – including a dedicated CREF track exclusively for our commercial/multifamily members. An exclusive reception will be held on Tuesday, March 19, at the National Museum of Women in the Arts. Lend your voice to our efforts and bring your expertise and experiences to the table.
Check out MBA’s group passes pricing.
Why it matters: Your participation at NAC ensures that members of the 118th Congress and other policymakers understand how proposed legislation affects your employees, your end users, and the communities you (and they) serve.
What’s next: MBA will continue to advocate on issues that impact the commercial/multifamily sector of the real estate finance industry.
For more information, please contact Jamey Lynch, AMP, at (202) 557-2818.
REGISTER: MBA’s State and Local Workshop on March 18-19
Join us in Washington, D.C. the day before the National Advocacy Conference begins to collaborate with industry peers on shared challenges and priorities and receive actionable advice to grow your state or local association’s member base.
Why it matters: In today’s challenging market, it’s more important than ever that state and local associations are helping members not just survive but grow.
What’s next: Take advantage of savings and maximize your impact when you register for both the State and Local Workshop and the National Advocacy Conference.
For more information, please contact Anthony Siller at (202) 557-2944.
Register: MBA’s mPact Summit on April 4 in Texas
Meet us in Texas for a full day of career development and networking on Thursday, April 4, 2024.
Back by popular demand, this event is built by – and for – young professionals in the real estate industry who are focused on helping you get to the next level.
Why it matters: Event topics include developing leadership skills, learning how to navigate your career, and building and practicing networking skills. You don’t want to miss this opportunity.
What’s next: Early bird registration ends on February 29. Register now and save!
For more information, please contact Jacky Salazar at (202) 557-.2746
Upcoming MBA Education Webinars on Critical Industry Issues
MBA Education continues to deliver timely single-family and commercial/multifamily programming that covers the spectrum of challenges, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars – which are complimentary to MBA members:
Revisiting Your Servicing Retained Versus Released Decision – February 15
The Role of Public-Private Partnerships for Sustainable Affordable Housing and Community Development – March 5
Private Credit Finance 201: A Deep Dive into Debt Funds and Their Impact to Commercial Real Estate Lending – March 6
A Crisis of Identity in Lending – Best Practices for Securing the Borrower Experience – March 12
Who Are Today’s Borrowers? A Look at the Lending Preferences and Expectations of Today’s Consumers – March 14
Making Sense of Multifamily Finance – March 14
MBA members can register for any of the above events and view recent webinar recordings by clicking here.
For any questions, please contact David Upbin at (202) 557-2931.
