CREF Policy Update March 18, 2021

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

1. President Biden Signs $1.9 Trillion COVID-19 Relief Bill

President Joe Biden signed the $1.9 trillion COVID-19 stimulus bill, the American Rescue Plan Act of 2021, into law. After the full House approved the Senate-passed version of the bill on Wednesday, MBA President and CEO Bob Broeksmit, CMB, said in a press statement, “MBA commends the passage of the American Rescue Plan Act of 2021 … which will deliver essential relief to millions of individuals and families affected by the COVID-19 pandemic.”

Why it matters: Highlights of the legislation that affect the commercial and multifamily industry include:

• Direct rental assistance;
• Targeted business assistance (including Paycheck Protection Program [PPP] and help for restaurants and shuttered venues);
• Unemployment insurance;
• Direct assistance to individuals; and
• State and federal assistance (including assistance that may be used for rental and other COVID-19-related assistance and for critical infrastructure projects).

What’s next: MBA has prepared a summary of these and other key provisions of interest to our commercial and multifamily members and, for the convenience of readers, the summary includes a link to the legislation and specific page-number references. We will continue to work on behalf of the industry to address the issues resulting from the ongoing COVD-19 pandemic. For more information, please contact Bill Killmer at (202) 557-2736 or Mike Flood at (202) 557-2745.  

2. Senate Votes to Confirm Marcia Fudge as HUD Secretary 

On Wednesday, the Senate voted 66-34 to confirm Congresswoman Marcia Fudge (D-OH) to serve as Secretary of the Department of Housing and Urban Development (HUD). MBA issued a letter of support for her nomination.

• Why it matters: Secretary Fudge will lead HUD and coordinate closely with other federal agencies to address important issues facing both homeowners and renters. She will continue the agency’s ongoing housing assistance programs during the COVID-19 emergency.  
• What’s next: Following the successful Fudge confirmation, the Biden administration is expected to make nominations for leadership positions at the Federal Housing Administration (FHA) and Ginnie Mae.

For more information, please contact Tallman Johnson at (202) 557-2866 or Ethan Saxon at (202) 557-2913.

3. Banking Agencies Update COVID-19 and CRA FAQs 

On Monday, the Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and Board of Governors of the Federal Reserve System updated their FAQs related to the Community Reinvestment Act (CRA) and the COVID-19 pandemic.

• Why it matters: The updated FAQs are intended to assist financial institutions and examiners with determining CRA consideration for activities undertaken in response to the COVID-19 pandemic, including PPP loans.
• What’s next: The update adds five new FAQs to the existing 13 interagency FAQs issued on May 27, 2020.

For more information, please contact Fran Mordi at (202) 557-2860 or Grant Carlson at (202) 557-2765.

4. Ohio Federal Judge Rules Against CDC Eviction Ban 

On Wednesday, a federal judge in Ohio ruled against the Centers for Disease Control and Prevention’s (CDC) national eviction but declined to issue an immediate injunction.

• Why it matters: Last month, a federal judge in Texas also ruled against the CDC eviction moratorium, and two other federal District Courts upheld the prior version of the CDC order. Unless modified, the current CDC order is effective through March 31, 2021.
• What’s next: The Justice Department has yet to issue a comment on the ruling in Ohio. In the Texas case, the Justice Department has appealed to the U.S. Fifth Circuit Court of Appeals.

For more information, please contact Bruce Oliver at (202) 557-2840 or Grant Carlson at (202) 557-2765.

5. Banking Agencies Proposed Private Flood Insurance Q&As

Last Thursday, the Federal Reserve, OCC, FDIC, National Credit Union Administration (NCUA), and Farm Credit Administration (FCA) announced proposed Q&As regarding the agencies’ final private flood insurance acceptance regulations. The new proposed Q&As on mandatory acceptance, discretionary acceptance, and private flood insurance general compliance will supplement the 118 Q&As that the agencies have previously issued on flood insurance. MBA previously commented on proposed revisions to the existing Q&As, and recently led a coalition responding to proposed FHA regulations on private flood insurance acceptance.

• Why it matters: The comment process provides an opportunity to communicate information and make recommendations to help the agencies understand how the rules can reasonably be applied in the real contexts facing members.  
• What’s next: MBA will work with our CREF and residential flood insurance member groups to analyze and comment on the proposed Q&As. The comment period will run for 60 days after the proposal is published in the Federal Register.

For more information, please contact Sara Singhas at (202) 557-2826 or Bruce Oliver at (202) 557-2840.

6. SEC Releases Statement on ESG Disclosures 

On Thursday, Securities and Exchange Commission (SEC) Acting Director for the Division of Corporate Finance John Coates outlined the SEC’s views on Environmental and Social Governance (ESG) disclosures. In a statement, Coates said, “Going forward, I believe SEC policy on ESG disclosures will need to be both adaptive and innovative. We can and should continue to adapt existing rules and standards to the realities of climate risk, for example, and the fact that investors increasingly are asking for ESG information to help them make informed investment and voting decisions. We will also need to be open to and supportive of innovation – in both institutions and policies on the content, format, and process for developing ESG disclosures.”

• Why it matters: The SEC and other regulators are increasingly focused on ESG and climate change. For example, last week the SEC announced the creation of a Climate and ESG Task Force within its Division of Enforcement. 
• What’s next: MBA will work with members and policymakers to address the impacts of climate change, including disclosures.

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

7. CFPB Issues ECOA Interpretive Rule 

On Wednesday, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule clarifying that the prohibition against sex discrimination under the Equal Credit Opportunity Act (ECOA) and Regulation B includes sexual orientation discrimination and gender discrimination. The prohibition also covers discrimination based on actual or perceived nonconformity with traditional sex- or gender-based stereotypes, and discrimination based on an applicant’s social or other associations. This development aligns with previous MBA advocacy for equal treatment under the law for all credit applicants.  

• Why it matters: ECOA’s anti-discrimination protections apply to “any person who has received an extension of credit from a creditor,” and “any person who is or may become contractually liable for an extension of credit,” including corporations, partnerships, cooperatives, and associations.
• What’s next: MBA will continue working with the CFPB and advocate for the Bureau to update ECOA in a way that clarifies compliance expectations. 

For more information, please contact Justin Wiseman at (202) 557-2854 or Bruce Oliver at (202) 557-2840. 

8. MBA Comments on FHFA Proposals for GSE Liquidity, Living Will Requirements

On Tuesday, MBA submitted recommendations to the Federal Housing Finance Agency (FHFA) on two proposed rules – one that would institute new liquidity standards for Fannie Mae and Freddie Mac (the GSEs), and another that would require the GSEs to develop resolution plans, or “living wills.” In its comments on the liquidity proposal, MBA highlighted potential improvements related to the classification of agency mortgage-backed securities (MBS) and the treatment of independent mortgage bank counterparties, as well as the need for greater transparency regarding existing requirements. In its comments on the resolution planning proposal, MBA focused on much-needed reforms, including utility-style regulation and a federal guarantee on GSE MBS, to minimize the likelihood of systemic impacts if a GSE were to fail.

• Why it matters: These proposals represent important planks of FHFA’s efforts to establish a comprehensive prudential framework for the GSEs. Such a framework is necessary to strengthen oversight of the GSEs before their eventual release from conservatorship.
• What’s next: MBA will continue to advocate for important reforms to the GSEs – both with FHFA and with Congress – prior to their release from conservatorship.

For more information, please contact Dan Fichtler at (202) 557-2780

10. House Financial Services Committee Holds Hearings on Legislative Priorities

On Wednesday and Thursday, the House Financial Services Committee held multiple legislative hearings laying the groundwork for Chairwoman Maxine Waters’ (D-CA) priorities. The full Committee hearing and Subcommittee hearings focused on several real estate finance-related policies impacting the commercial/multifamily and residential sectors. The full list of legislation discussed in relation to the hearings can be found here and here.

• Why it matters: These hearings are expected to serve as the baseline for legislation to be considered before the full House this Congress.
• What’s next: MBA will continue to engage with lawmakers in both the House and Senate (and the administration) to provide commentary on proposals impacting the industry. 

For more information, please contact Borden Hoskins at (202) 557-2712, Tallman Johnson at (202) 557-2866, or Ethan Saxon at (202) 557-2913. 

11. State Trackers

• State eviction moratorium and legislative activity trackers are available here.

For more information, please contact William Kooper at (202) 557-2737 or Grant Carlson at (202) 557-2765.

12. Register Today: MBA’s Spring Conference & Expo 2021 – April 20-22. 

MBA’s Spring Conference & Expo 2021, taking place via MBA Live, will feature several must-see sessions, including remarks from FHFA Director Mark Calabria and other prominent Washington policymakers and stakeholders. 

• Why it matters: Calabria will discuss the various policy issues at FHFA, while MBA leadership and others will examine the latest updates on Capitol Hill and within the Biden administration.
• What’s next: To register for the conference, click here. 

For more information, please contact Dawn Williams at (202) 557-2877.

13. Upcoming and Recent 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:

• CCPA Review and What Lies Ahead – March 23
• Receivership 101 and Exploring Financing Opportunities – March 24
• Renter Counseling to Mitigate Evictions and Reduce Operational Costs – March 31
• The Location of Affordable & Subsidized Rental Housing Across and Within the Largest Cities in the United States – April 8

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) 557-2890.