CREF Policy Update Oct. 7, 2021

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

Late last week House and Senate lawmakers passed and President Joe Biden signed a continuing resolution ahead of the September 30 government funding deadline to avert a shutdown. Also, MBA updated its state-by-state compilation of commercial/multifamily mortgage licensing requirements.

Make sure to register for MBA CREF’s new webinar series on ESG and its effect on the industry. Our first webinar in the series, beginning on October 12, will be free to non-members. See below for more details.

1. Congress Passes and President Biden Signs Stopgap Funding Bill to Avert Government Shutdown

House and Senate lawmakers passed, and President Joe Biden signed, a continuing resolution (CR) ahead of the September 30 government funding deadline to avert a shutdown. The debt ceiling hike, which was included in the House-passed bill last week, was removed to gain the bipartisan support needed to clear both chambers. House and Senate Democratic leaders are acutely aware that, in avoiding one fiscal cliff, they have forfeited leverage to prevent another — a national debt default expected to hit October 18, according to Treasury Secretary Janet Yellen.

• Why it matters: The CR, which includes a short-term extension of the National Flood Insurance Program (NFIP) authorization, would extend government funding to December 3, 2021. Additionally, the bill provides $28.6 billion in funding for emergency disaster relief.
• What’s next: Congressional Republicans remain steadfast in their position that the debt ceiling be addressed through the reconciliation process — a move that has been adamantly opposed by Democrats. On Wednesday, House lawmakers passed a standalone bill that would raise the debt ceiling until December 16, 2022, but it is expected to be dead on arrival in the 50-50 Senate absent GOP support. 

For more information, contact Borden Hoskins at (202) 557-2712 or Alden Knowlton at (202) 557-2741.

2. MBA’s Updated 2021 State Commercial Mortgage Licensing Resource Now Available

MBA is pleased to provide the latest update to its state-by-state compilation of commercial/multifamily mortgage licensing requirements. This resource is a no-cost, member-only benefit. The state commercial mortgage licensing resource is updated annually and covers state requirements for servicing commercial/multifamily mortgages as well as requirements for making or brokering commercial/multifamily mortgages. For each state, the resource describes relevant state licensing requirements, and provides links to applicable statutes and state regulator resources and contacts.

• Why it matters: While not legal advice or guidance, this information provides a resource for MBA members who would benefit from a greater understanding of the mortgage licensing law framework for various states.
• What’s next: MBA will continue to update this resource annually.

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

3. Powell and Yellen Testify Before Congress; Face Questions On Regulation, Economy and Inflation

Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen confronted difficult questions last week before House and Senate hearings regarding CARES Act oversight. Lawmakers demanded more action in response to perceived lapses over everything from ethics and diversity to inflation and financial regulation – as well as actions to raise the statutory debt limit. Senator Elizabeth Warren (D-MA), a vocal critic of the Fed’s oversight of Wall Street under Powell, said she would not back him for another term as Fed Chair, calling him a “dangerous man” to head the central bank. Secretary Yellen laid out in explicit terms what she expects to happen if Congress does not deal with the debt limit before October 18, which the Treasury now believes is when the United States will face default. A summary of both hearings can be found here.

• Why it matters: The country’s two top economic policymakers also warned lawmakers this week that the Delta variant of the coronavirus had slowed recovery, though they expressed optimism that the economy would continue to strengthen.
• What’s next: An announcement regarding President Biden’s plans to nominate a new Fed Chair is expected in coming weeks, with Powell’s term set to expire in early 2022. Yellen will continue to lead the administration’s efforts on the debt limit and finalizing a tax/reconciliation package with the Congress.

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

4. California Eviction Moratorium Expires; Local Moratoriums Remain

Last Thursday, California’s statewide moratorium on both residential and commercial evictions expired.

• Why it matters: While the state’s moratorium expired, many local moratoriums remain in place.
• What’s next: Los Angeles County has a moratorium on evictions until January 2022, and the City of Los Angeles has a moratorium on evictions until October 2022.

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

5. Senate Votes to Confirm Rohit Chopra as CFPB Director

After a series of required procedural votes, the full Senate voted 50-48 to confirm Federal Trade Commission (FTC) official Rohit Chopra as the next Consumer Financial Protection Bureau (CFPB) Director. The Senate had previously voted 49-48 to “discharge” the Chopra nomination from the Senate Banking Committee. This additional procedural floor vote was required because of the committee’s prior tie vote on his nomination along partisan lines. During his confirmation hearing weeks ago, Chopra indicated that he would focus on the housing market, “unlawful and avoidable foreclosures,” and “systemic inequities faced by families of color” in the mortgage market.

• Why it matters: The CFPB has taken an increasingly substantial role in the oversight of ongoing mortgage servicing and CARES Act forbearance.
• What’s next: MBA will endeavor to work closely with the new CFPB Director and key staff at the agency.

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

6. Climate/Environmental, Social and Governance (ESG) Resources

MBA Launches ESG Webinar Series Tuesday, October 12

Please join MBA on Tuesday, October 12, from 3:00 to 4:00 PM EST for “ESG 101, How ESG Is Changing Commercial Real Estate,” the first of MBA’s four-part series on environmental, social and governance (ESG). The ESG 101 webinar will cover a broad overview of ESG and feature a panel discussion on how ESG is changing the way commercial real estate finance firms are doing business. The overview of ESG will be presented by Ernst & Young’s Kyle Bolden, the East Region Market Segment Leader, Real Estate, Hospitality & Construction; and be followed by a panel discussion on ESG in commercial real estate finance by MBA members. Non-members may register free of charge using the promotion code ESG101 at checkout.

• Why it matters: ESG 101 will provide members and the public with an overview of ESG and its intersection with commercial real estate finance.
• What’s next: MBA will host the event on October 12 from 3:00 to 4:00 pm EST

For more information or to get involved in climate and environmental, social, and governance (ESG) policy, contact Adrian Ballinger at (202) 557-2774.

7. State Trackers

• State eviction moratorium and legislative activity tracker available here.

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

8. [VIDEO]: mPower Moments: On Leadership and Embracing New Opportunities with Fannie Mae’s Michele Evans  

In this new episode of mPower Moments, mPower Founder Marcia M. Davies chats with Fannie Mae Executive Vice President and Head of Multifamily Michele Evans. During the interview, Evans discusses the importance of embracing new opportunities within an organization, the characteristics future leaders have, and why women should support and celebrate each other.

• What’s next: To watch more mPower Moments, click here.

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

9. 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:

• Increasing Profitability: Transitioning to Delegated Underwriting and Improving Loss Mitigation – October 7
• ESG 101: How ESG Is Changing Commercial Real Estate – October 12
• Are We There Yet? CRE and LIBOR Transition Check-Up – November 4

MBA members can register for any of the above events and view recent webinar recordings.

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