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CREF Highlights Oct. 29, 2020

October 27, 2020 |By Mike Flood

Commercial and multifamily developments and activities from MBA relevant to your business and our industry.

Last week at MBA’s Annual Convention and Expo 2020, FHFA Director Mark Calabria announced the release of a proposed rule regarding the development of new products and activities by the GSEs. On Tuesday, New York Governor Andrew Cuomo signed an Executive Order extending the state’s moratorium on COVID-19-related commercial evictions and foreclosures through January 1, 2021. Also last Tuesday, the federal banking agencies adopted a final net stable funding ratio (NSFR) rule. Then on Wednesday, FHFA sent a letter to Federal Home Loan Bank Presidents encouraging them to adhere to the ISDA IBOR Fallbacks Protocol and Fallbacks Supplement.

1. FHFA Proposes Rule to Increase Transparency of New GSE Products and Activities
On Monday at MBA’s Annual Convention and Expo 2020, Federal Housing Finance Agency (FHFA) Director Mark Calabria announced the release of a proposed rule regarding the development of new products and activities by Fannie Mae and Freddie Mac (the GSEs). The proposed rule provides a more comprehensive framework for FHFA review of new GSE products and activities, as well as opportunities for public comment on these products and activities.

  • Why it matters: MBA has long advocated for greater transparency in the development of new GSE products and activities as one of several “market conduct” reforms that should be implemented prior to the GSEs’ eventual exits from conservatorship.
  • What’s next: MBA will work with its members to develop comments and recommendations in response to the proposed rule. Comments will be due 60 days following publication of the proposed rule in the Federal Register.

For more information or to join the working group, please contact Sharon Walker at (202) 557-2747.

2. New York Governor Cuomo Extends Commercial Eviction and Foreclosure Moratorium Until January 1, 2021
On Tuesday, New York Governor Andrew Cuomo signed an Executive Order extending the state’s moratorium on COVID-19-related commercial evictions and foreclosures through January 1, 2021.

  • Why it matters: ​New York is the only state with a statewide moratorium on commercial evictions and foreclosures. New York also has a statewide moratorium on residential evictions until January 1, 2021.
  • What’s next: MBA will continue to monitor for new developments.

For more information, please contact Grant Carlson at (202) 557-2765.

3. Banking Agencies Adopt Final Net Stable Funding Ratio Rule
On Tuesday, the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (FDIC) adopted a final net stable funding ratio rule (NFSR). The final rule implements a NFSR standard established by the Basel Committee on Banking Supervision (BCBS) in 2014 in response to the 2007-2009 financial crisis.

  • Why it matters: ​The final rule establishes a quantitative metric, the NSFR, to measure the stability of the funding profile of certain large banking organizations ($100 billion or more in assets), and requires them to maintain minimum amounts of stable funding to support their assets, commitments, and derivatives exposures over a one-year time horizon.
  • What’s next: The requirement takes effect July 1, 2021.

For more information, please contact Grant Carlson at (202) 557-2765.

4. FHFA Sends Letter to FHLBs Encouraging Adherence with ISDA IBOR Fallbacks Protocol and Fallbacks Supplement
On Wednesday, FHFA sent a letter to Federal Home Loan Bank Presidents encouraging them to adhere to the ISDA IBOR Fallbacks Protocol and Fallbacks Supplement.

  • Why It matters: As part of the transition away from LIBOR, the International Swaps and Derivatives Association (ISDA) Fallbacks Protocol will take effect on January 25, 2021, at which point existing derivatives contracts will incorporate the new fallbacks if both counterparties have adhered to the Protocol, or otherwise bilaterally agreed to include the new fallbacks in their contracts. The ISDA Fallbacks Supplement will also take effect on January 25, 2021, at which point new derivatives contracts that incorporate the 2006 ISDA Definitions, and reference a relevant IBOR, will also incorporate the new fallbacks.
  • What’s next: FHFA’s letter to Federal Home Loan Bank Presidents noted: “[P]rudent risk management mandates signing the ISDA protocol within the escrow period [by October 23, 2020],” and “If your FHLBank does not adhere to the Protocol by the close of the escrow period, it must do so by no later than December 31, 2020.”

For more information, please contact Andrew Foster at (202) 557-2740.

5. Eviction Moratorium, State Legislative Roundup and Rental Assistance Tracker
MBA has compiled a new member resource outlining current state and local rental assistance programs or resources. We will continue to provide weekly updates of these member resources.

  • MBA’s CREF State Eviction Moratorium Tracker can be found here.
  • MBA’s CREF State Legislation Roundup can be found here.
  • MBA’s State Rental Assistance Tracker can be found here.

For more information, please contact Grant Carlson at (202) 557-2765.

6. CREF Careers Hosts Virtual Panel
Yesterday, CREF Careers hosted a virtual panel highlighting career opportunities within the commercial real estate finance industry. The panelists included: JLL’s Melisa Rose; Berkadia’s Emily Schultz; CBRE’S Chelsea Cutler; KeyBank’s Amber Rao; Newmark Knight Frank Elizabeth Horan; and Walker & Dunlop’s Stephanie Wiggins.

  • Why it matters: The panelists discussed their experiences working in the CREF industry and shared tips on succeeding.
  • What’s next: To learn more about CREF Careers, click here.

For more information, please contact Reggie Booker at (202) 557-2863.

7. [VIDEO]: mPower Moments: The Power of Diplomacy with Capricia Marshall
In this latest episode of mPower Moments, Capricia Marshall, Former Chief of Protocol, Obama Administration, and Ambassador-in-Residence, Atlantic Council, shares incredible stories from her career on how protocol, preparation and flexibility are necessary components to being an effective leader.

  • Why it matters: Marshall also shared with mPower Founder Marcia M. Davies why empathy is at the heart of diplomacy and leadership.
  • To watch more mPower Moments, click here.

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

8. Upcoming and Recent 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 and recent webinars – which are complimentary to MBA members:

MBA members can access the list of recent webinar recordings by clicking here.

For more information, please contact David Upbin at (202) 557-2890.

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