CREF Policy Update: MBA’s Broeksmit, Industry Leaders Meet with Treasury Secretary
MBA’s Broeksmit, Industry Leaders Meet with Treasury Secretary
• Last Tuesday afternoon, MBA’s President and CEO, Bob Broeksmit, CMB, and Senior Vice President for Legislative and Political Affairs (LPA) Bill Killmer led a group of commercial/multifamily and residential MBA member executives to meet with Treasury Secretary Scott Bessent and members of his senior staff.
The group, which included all three MBA Officers as well as other key association member CEOs, discussed a broad range of current policy priorities with the Secretary and his Treasury team, including housing affordability recommendations, bank capital rules, policies related to the housing GSEs (Fannie Mae and Freddie Mac), the Trump administration’s recent Executive Order designed to ensure that large institutional investors not buy single-family homes that could otherwise be purchased by families, and real estate finance market conditions (broadly).
Go deeper: Broeksmit and the MBA leadership group thanked Secretary Bessent for his Tuesday social media post reaffirming his support for Federal Reserve Vice Chair Michelle Bowman’s recent comments on planned regulatory capital reforms designed to improve lending conditions.
Why it matters: The MBA delegation engaged in a dialogue with Secretary Bessent, Treasury Under Secretary for Domestic Finance Jonathan McKernan, Deputy Assistant Secretary for Capital Markets Ethan Fallang, and Director of Policy and Planning Hunter McMaster on items such as the interest rate environment, the CREF market outlook (including current conditions), the holistic structure of the CREF ecosystem (across all capital sources), the impact of recent increases to the GSEs’ multifamily caps, and other items.
What’s next: MBA will continue to advocate for its preferred policy outcomes on all priority items discussed with the senior Treasury team earlier this week – including both legislative and regulatory solutions.
For more information, please contact Jamie Woodwell (202) 557-2936, Mike Fratantoni (202) 557-2935, and/or Bill Killmer at (202) 557-2736.
Fed Vice Chair Bowman Previews MBA-Backed Mortgage Lending Reforms; MBA Leads Joint Basel III Letter
Last Monday, Federal Reserve Vice Chair for Supervision Bowman gave a speech titled, “Revitalizing Bank Mortgage Lending, One Step with Basel.” Bowman used this speech to highlight banks’ retreat from the mortgage market since the Great Financial Crisis.
• Bowman emphasized that strengthening bank participation in mortgage activities does not threaten the safety and soundness of the banking system.
• The misalignment between capital requirements and actual risk was also discussed, and Bowman pledged to revisit whether the capital treatment of mortgage servicing rights (MSRs) and mortgages is appropriately calibrated and commensurate with risks.
• Bowman later in the week emphasized similar themes and previewed the forthcoming Basel III Endgame re-proposal at speeches at the Exchequer Club in Washington, D.C., and the Federal Reserve Bank of Atlanta 2026 Banking Outlook Conference.
What they’re saying: In a press statement following Monday’s speech, MBA President and CEO Bob Broeksmit, CMB, said, “[Bowman’s] recognition that aspects of the current capital framework have discouraged banks from competing for mortgage origination and servicing activity is an important step forward. A more appropriately calibrated approach, particularly with respect to mortgage servicing rights and mortgage loans, will strengthen banks’ ability to serve creditworthy borrowers while maintaining safety and soundness.”
Why it matters: The Basel III Endgame proposal will set capital standards for U.S. headquartered banks and have an outsized effect on banks’ business activities including CRE lending and multifamily lending.
Earlier today, MBA led a broad, joint trades letter to the banking agencies that expressed strong support for the renewed effort to reexamine and repropose a revised Basel III re-proposal.
What’s next: MBA is eager to review the forthcoming Basel III proposal (expected by the end of March) and engage in the formal comment process, and stands ready to work with the Federal Reserve and other regulators on a balanced framework that supports real estate finance markets. MBA is seeking feedback from its depository members on ways to improve capital standards and encourage bank participation in CRE and multifamily lending.
For more information, please contact John Lammle at (202) 557-2789.
Highlights from #MBACREF26 in San Diego!
A special thanks to the more than 2,000 commercial/multifamily members who joined us earlier this month in San Diego for another memorable Commercial/Multifamily Finance Convention and Expo!
Read Jamie Woodwell’s recap of his favorite moments, takeaways, and what’s ahead.
One of our favorite #MBACREF26 sessions was the CRE Executive Perspectives: Walker Webcast live session that featured illuminating discussion with Willy Walker (Walker & Dunlop), Michelle Herrick (JP Morgan), Justin Wheeler (Berkadia) and James Millon (CBRE) on what’s shaping the market today. If you missed it live in San Diego, watch the replay here.
CNBC senior real estate correspondent Diana Olick moderated a panel and interviewed numerous CRE leaders for her Property Play newsletter and podcast. Read her recap here and watch some of those interviews here.
For more information, please contact Jamie Woodwell at (202) 557-2936.
OCC Follows FDIC Lead, Revises Supervisory Appeal Determination Process
Last Monday, the Office for the Comptroller of the Currency (OCC) issued a Notice of Proposed Rulemaking (NPR) to establish a revised process by which OCC-supervised depositories can appeal “material supervisory determinations” with which they disagree.
Why it matters: Supervisory appeals are not only avenues for depositories to challenge regulators’ findings with which they disagree. They are also a unique vehicle to communicate with their primary federal regulators. In that way, they are beneficial to depositories beyond those specifically involved — by resolving key disputes, often over specific loans or lending practices, and thereby encouraging more depository lending to the benefit of all market participants. MBA remains supportive of processes that allow depositories to meaningfully engage their regulators and resolve disputes.
Go deeper: Earlier in January, the FDIC Board of Directors voted to establish an Office of Supervisory Appeals. If enacted, the proposal would replace the OCC’s existing guidance for handling bank appeals and create an “appeals board” to review new appeals.
• The proposed “appeals board” would consist of the chief national bank examiner and two term appointees, both of which are expected to have relevant supervisory experience gained from either working for a financial regulator, financial institution, or similar private sector entity.
• The OCC is proposing a “de novo standard of review” meaning any review process will not defer to the previous decision but will freely reevaluate the appeal as if no decision had been previously issued.
What’s next: The comment period on the NPR is open for 60 days. MBA will continue to monitor the Rulemaking throughout the comment period process.
For more information, please contact John Lammle at (202) 557-2789.
Nominations Open for Inaugural Commercial mPact Spotlight Award
Nominations are now open for the first-ever Commercial mPact Spotlight Award, a new recognition designed to highlight outstanding professionals making an impact in commercial real estate finance. MBA is seeking to celebrate the next generation of industry leaders and invites members to help identify individuals who demonstrate leadership, innovation, collaboration, and dedication to their company’s success and the strength of the broader industry.
Why it matters: The Commercial mPact Spotlight Award shines a light on emerging talent shaping the future of commercial real estate finance and reinforces MBA’s commitment to leadership development and cross capital engagement.
What’s next: Submit your nomination by April 30. Members are encouraged to nominate a colleague, team member, or rising professional who exemplifies excellence and a commitment to advancing the industry.
For more information or assistance with submitting a nomination, please contact Kelli Burke at (202) 557-2742.
Upcoming MBA CREF Council and Committee Meetings
MBA’s CREF Councils and Committees are a key way to connect to everything MBA has to offer around policy, advocacy, market intelligence and research, education, and networking. Councils and Committees are built around specific capital sources and serve as an opportunity for you to join other commercial real estate finance professionals to hear from experts, discuss opportunities and challenges, and connect with peers.
Upcoming virtual meetings include:
• FHA Council: March 10
• Structured Finance Council: March 18
• Servicer Council: March 19
• Bank Council: March 25
• Private Credit Finance: April 23
For more information, click on the links above and/or contact Kelli Burke at (202) 557- 2742.
Upcoming MBA Education Webinars on Critical Industry Issues
MBA Education continues to deliver timely commercial/multifamily and single-family programming that covers the spectrum of challenges, opportunities, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars – all complimentary to MBA members:
• Builder’s Risk Insurance Essentials for Commercial & Multifamily Properties – March 18
• Introduction to Commercial Mortgage-Backed Securities – April 8
• Basics of Commercial Loan Closing and Loan Documentation – May 12
MBA members can register for any of the above events and view recent webinar recordings by clicking here.
For more information, please contact David Upbin at (202) 557-2931.
