Breaking Advocacy Update: MBA Creates Member Guide Ahead of Government Shutdown Possibility on Wednesday
As of this writing, the federal government is on the brink of a shutdown with a deadline of 11:59 p.m. ET on Tuesday, September 30. MBA remains directly engaged with lawmakers in both chambers of Congress – and affected regulators – and has created a member guide that outlines the potential impacts to single-family and multifamily government lending programs.
• Starting on October 1, a shutdown would necessitate a furlough of certain federal employees and significant curtailment of certain operations requiring agency staff intervention or action at the Department of Housing and Urban Development, Veterans Affairs, and the Department of Agriculture.
• National Flood Insurance Program (NFIP) authorities are also scheduled to expire on October 1. MBA continues to advocate for an extension of NFIP’s authority to avoid disruptions to the housing market, including joining other trade groups in a letter to Congressional leadership.
Go deeper: On September 19, Republicans in the House of Representatives passed a short-term Continuing Resolution (CR) that extends Fiscal Year (FY) 2024-2025 funding levels through November 21, 2025. However, in the Senate, where 60 votes are needed, all but one of the 46 Democratic Senator (and two Independents) have refused to advance the House-passed CR and are insisting – along with House Democratic leaders – that certain health-care related priorities be added to the current GOP proposal.
• Importantly, an NFIP extension is currently provided for in the House-passed CR but could be at risk if the Senate CR debate stalls. A lapse in the NFIP would be disruptive, especially at closing time for loans relying on the program. MBA will continue its work with lawmakers and agency officials in calling for an extension of NFIP’s authority – including a possible separate/targeted authorization measure – to avoid disruptions to the flood insurance market.
• Last week, the Office of Management and Budget (OMB) issued a memo that instructs federal agencies to prepare, in the event of a government shutdown, for reduction-in-force (RIF) plans. MBA continues to monitor this situation for potential impacts.
What’s next: A shutdown lasting a few days would slightly inconvenience single-family and multifamily mortgage markets. A longer delay – especially if it leads to widespread layoffs at federal agencies important to the industry – would have much more severe and disruptive impacts to members and the consumers, end users, and customers they serve.
For more information, please contact Bill Killmer at (202) 557-2736, Pete Mills at (202) 557-2858 and Jamie Woodwell at (202) 557-2936.
