CREF Policy Update April 14, 2022

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

week, MBA announced that Bruce Oliver, Vice President of Commercial Multifamily Policy, is retiring from MBA on July 15, 2022. On Wednesday, the House Financial Services Committee held a hearing featuring testimony from Treasury Secretary Janet Yellen on the state of the international financial system. Late last week, the International Sustainability Standards Board released two proposals for consultation on climate-related disclosures. And yesterday, the Senate confirmed Judge Ketanji Brown Jackson to the U.S. Supreme Court, making her the first Black woman to serve as a Supreme Court justice.

Sign MBA’s Home for All Pledge: Join the 200+ MBA member companies that have signed MBA’s Home for All Pledge, representing a commitment to promoting affordable rental housing; minority homeownership; and company diversity, equity, and inclusion. One senior executive (e.g., CEO, COO, President, Head of Lending, SVP) is encouraged to sign this online form on behalf of your organization. 

View Any Session You Missed from MBA CREF22: Were you one of the over 2,400 registrants that attended MBA’s Commercial/Multifamily Finance Convention & Expo? If you weren’t able to attend every session, they are available to you online for the next month. Simply access the program videos by clicking here. 

1. MBA’s Bruce Oliver Retiring on July 15, 2022

Bruce Oliver, MBA’s Vice President of Commercial Multifamily Policy, is retiring from MBA on July 15, 2022. As many of you know, he has had an incredible career spanning real estate finance, policy, and law. Over the last five years, Oliver has been an invaluable MBA leader on behalf of members, leading the CREF team on key policy issues.

• Why it matters: Oliver’s best work has come throughout the COVID-19 pandemic, including obtaining capital and accounting relief to enable life companies and other lenders to make prudent loan modifications. He has also been instrumental in improving the application of Davis-Bacon wage rates to Federal Housing Administration (FHA)-financed multifamily construction projects, and has done exceptional work regarding members’ reporting requirements under the Home Mortgage Disclosure Act (HMDA).
• What’s next: MBA’s commitment to serve members and strengthen the commercial and multifamily real estate finance system continues. The job posting of Bruce’s position can be found here. Please do not hesitate to contact me if you know of someone who is the perfect fit.

For more information, please contact Mike Flood at (202) 557-2745.

2. Treasury Secretary Yellen Testifies before House Financial Services Committee

On Wednesday, the House Financial Services Committee held a hearing featuring testimony from Treasury Secretary Janet Yellen on the state of the international financial system. Lawmakers spent most of the discussion on Russia’s invasion of Ukraine and the effectiveness of sanctions from the United States and allies. Lawmakers offered resounding bipartisan support for the administration’s efforts in response to Russia.

• Why it matters: Additional discussion topics spanned a variety of other issues, including the Treasury Department’s role in the Organisation for Economic Co-operation and Development’s (OECD) Pillar Two Model Rules, the LIBOR transition, inflation, beneficial ownership, digital assets, climate change, and international financial institutions. A full summary of the hearing can be found here.
• What’s next: Secretary Yellen remains a central figure in organizing and implementing financial regulation (as head of the federal Financial Stability Oversight Council, known as FSOC) and tax policies. MBA will remain closely engaged with policymakers in the administration and Congress concerning our industry’s policy priorities within her jurisdiction.

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

3. Gordon’s FHA Nomination Inches Forward in Senate

On Tuesday, the Senate narrowly advanced Julia Gordon’s nomination to be the U.S. Department of Housing and Urban Development’s (HUD) Assistant Secretary for Housing and FHA Commissioner by a vote of 51-50. In a deadlocked Senate, Vice President Kamala Harris’ vote broke a tie to “discharge” Gordon from the Senate Banking Committee, placing her nomination on the Senate’s executive calendar for potential consideration. The “discharge” vote was needed as the banking panel had advanced her nomination by a 12-12 tie vote earlier this year. MBA submitted a letter of support for Gordon during her confirmation hearing last summer.

• Why it matters: The FHA, which insures over $1.2 trillion in single-family forward and reverse mortgages, has been without a confirmed FHA commissioner since January 2021.
• What’s next: Senate leadership can now call for a procedural vote on Gordon at any time, followed by a final confirmation vote. There is speculation that she may receive Senate floor time for these additional votes by the end of April (or early May), setting up her final confirmation for shortly after the two-week Easter/Passover congressional recess.

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

4. ISSB Releases Draft Proposal of Global Sustainability Disclosure Standard

On March 31, the International Sustainability Standards Board (ISSB) released two proposals for consultation on climate-related disclosures. One proposal establishes general sustainability disclosure requirements and the second focuses on climate-risk disclosure. The draft proposals build on existing sustainability disclosure standards and frameworks, including recommendations outlined in the Task Force on Climate-Related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB). The ISSB was created at COP26, the United Nations global summit to address climate change, to develop comprehensive global sustainability disclosure standards for capital markets, and it sets the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards. The IFRS Accounting Standards are required for use by more than 140 jurisdictions around the world.

• Why it matters: Given the widespread adoption of the IFRS accounting standards, the finalized ISSB standards may also be widely adopted, which would influence not only CREF business but also the development of climate disclosure standards in the United States and abroad.
• What’s next: The proposals are open for comment until July 29, 2022. The subsequent standards may be issued as soon as the second half of 2022. 

For more information, please contact Bruce Oliver at (202) 557-2840 or Adrian Ballinger at (202) 557-7447.

5. Maryland Lawmakers Pass Climate Solutions Now Act Legislation

Last week, Maryland lawmakers passed the Climate Solution Now Act, which is designed to reduce climate emissions by 60% by 2031 and achieve net zero by 2040.

• Why it matters: The legislation would require large commercial and multifamily buildings to reduce emissions by 20% by 2030 and achieve net zero by 2040. 
• What’s next: The legislation will be sent to Maryland Governor Larry Hogan for his signature. 

For more information, please contact Kobie Pruitt at (202) 557-2870 or Grant Carlson at (202)-557-2765.

6. MBA’s Fratantoni Delivers Remarks on Residential Real Estate Trends at Basel Committee on Banking Supervision Virtual Workshop 

On Wednesday, Mike Fratantoni, MBA SVP and Chief Economist, delivered remarks on residential real estate trends at a Basel Committee on Banking Supervision (BCBS) virtual workshop on risks and vulnerabilities. The workshop featured panel discussions from Fratantoni and other representatives from ratings agencies, supervisors, and banks.

• Why it matters: Fratantoni’s presentation focused on MBA’s economic and mortgage market forecast, rental housing market conditions, loan performance, and mortgage company productivity.
• What’s next: Slides from Fratantoni’s presentation can be viewed here.

For more information, please contact Mike Fratantoni at (202) 557-2935.

7. 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.

8. Register Today: MBA’s National Advocacy Conference – April 26-27

Registration is open for MBA’s National Advocacy Conference (NAC) to be held April 26-27 in Washington, D.C. NAC allows you to connect directly with elected officials in our nation’s capital. Your story matters – share it with key policymakers as they consider and pass legislation that affects all of us. 

• Why it matters: The last two years have been unprecedented for millions of Americans, and the real estate finance industry is no different as we navigate new terrains. NAC gives you the opportunity to share your narrative with the key staff and decision-makers while networking with your colleagues from all over the industry. When we work together and combine our voices, we can do great things.  
• What’s next: Share your experiences, your voice, and your passion for our industry April 26-27! Register today at mba.org/nac.

For more information, please contact Rachel Kelley at (202) 557-2816.

9. 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 recent and upcoming webinars, which are complimentary to MBA members:

• Special Purpose Credit Programs: The What, the Why, and the How – April 12
• CFPB Enforcement Authority Over Student Loans and Impact on Mortgage Lending – April 21
• Introduction to Commercial Mortgage-Backed Securities – May 19
• CONVERGENCE: Measuring Housing Affordability in America – April 25
• Introduction to Commercial Mortgage-Backed Securities – May 19
• New Fannie Mae and Freddie Mac Condominium and Cooperative Guideline Changes – May 24

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

For more information, please contact David Upbin at (202) 557-2931.