CREF Policy Update Oct. 21, 2021

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

Last week FHFA announced the 2022 multifamily loan purchase caps for Fannie Mae and Freddie Mac will be $78 billion for each Enterprise, for a combined total of $156 billion to support the multifamily market. Last Tuesday the House passed a short-term debt ceiling extension and President Biden signed the bill into law. Also last week, MBA hosted the first of a four-part series on ESG and its intersection with commercial real estate finance

LISTEN: Mike Flood recently participated in an interview on The TreppWire Podcast to discuss taxes, infrastructure, the multifamily sector, banking areas to watch, insurance lending and ESG

1. FHFA Releases 2022 Multifamily Caps 

Last Wednesday, the Federal Housing Finance Agency (FHFA) announced the 2022 multifamily loan purchase caps for Fannie Mae and Freddie Mac will be $78 billion for each Enterprise, for a combined total of $156 billion to support the multifamily market. The 2022 caps are based on FHFA’s predictions related to the overall growth of the multifamily originations market. Highlights from the new caps include that, consistent with the 2021 caps, FHFA will require that at least 50% of the Enterprises’ multifamily business be mission-driven affordable housing. FHFA will also require that at least 25% of the Enterprises’ multifamily business be affordable to residents at or below 60% of area median income (AMI). FHFA is also expanding on multifamily requirements for mission-driven affordable housing, including loans on affordable units in cost-burdened renter markets and loans to finance energy or water efficiency improvements.

MBA released a press statement from President and CEO Bob Broeksmit, CMB, shortly after the announcement.

• Why it matters: FHFA multifamily caps play a significant role in the flow of capital in the multifamily market.
• What’s next: MBA staff will provide an analysis of how these changes impact its members and multifamily housing finance.

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

2. House Passes and President Biden Signs a Short-Term Debt Limit Increase

Last week the House passed a short-term $480 billion debt ceiling extension that President Joe Biden signed into law on Wednesday. The temporary increase will allow the U.S. Treasury Department to continue funding the government’s financial obligations through December 3, 2021. 

• Why it matters: A default in U.S. debt has never occurred, and would create immediate national and global economic uncertainty.
• What’s next: Republicans and Democrats in both chambers remain far apart on a long-term solution for the debt ceiling as December’s list of pressing fiscal priorities continues to pile up. MBA will provide members with relevant updates as necessary

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

3. MBA Launches Four-Part ESG Webinar Series

Last Tuesday, MBA hosted the first of a four-part series on environmental, social, and governance (ESG) and its intersection with commercial real estate finance. The event, “ESG 101, How ESG Is Changing Commercial Real Estate,” featured an overview of ESG, presented by Ernst and Young, and a panel discussion among MBA members on how ESG is emerging in the commercial real estate finance space. Over 240 members participated in the webinar.  

• Why it matters: MBA members had the opportunity to learn about ESG and its implementation in the CRE space. 
• What’s next: Part Two of the ESG webinar series will be scheduled for later this fall.

For more information, please contact Adrian Ballinger at (202) 557-2774. 

4. State Trackers

• State eviction moratorium and legislative activity tracker available here.

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

5. 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:

• CFPB’s New AVM Guidelines – How to Be Prepared – November 3
• Are We There Yet? CRE and LIBOR Transition Check-Up – November 4
• Understanding the Surge in Single-Family Rentals – November 4
• The Impact of Increased Enforcement on Marketing Compliance – November 18
• Rental Housing Perspectives: Low-Income Housing Tax Credit Landscape – November 30

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.