CREF Policy Update Jan. 13, 2022
Commercial and multifamily developments and activities from MBA relevant to your business and our industry.
Last Thursday, MBA submitted an industry comment letter responding to the CFPB’s proposed small-business loan reporting rule. Also last week, FHFA determined that the revised Duty to Serve Proposed Underserved Markets Plans for 2022-2024 submitted by the GSEs did not meet the non-objection standard for any of the three underserved markets.
- MBA Leads CRE Industry Response to Proposed Small-Business Loan Reporting Rule
On Thursday, MBA submitted an industry comment letter responding to the Consumer Financial Protection Bureau’s proposed small-business loan reporting rule. The rule will implement section 1071 of the Dodd-Frank Act, which requires HMDA-like reporting on small-business loans. The coalition letter urges the CFPB to clarify that loans to finance income-producing commercial and multifamily properties is not small-business lending – as proposed, the rule would exempt only single-family investment properties. The letter also recommends other changes to make it easier to screen out non-small-business lending and to ease the burden of reporting small-business loans that do fall within the rule.
- Why it matters: Absent a clear exclusion of investment property lending, the rule could apply to commercial and multifamily lending or, at a minimum, could make it operationally challenging to screen out lending that does not fall under the rule.
- What’s next: The CFPB must consider all comments it receives prior to issuing a final rule.
For more information, please contact Bruce Oliver at (202) 557-2840.
2. NY Lawmakers Hold Hearing on ‘Good Cause Eviction Bill’ as Eviction Moratorium Is Set to Expire
Today, New York lawmakers will hold a virtual hearing to consider “good cause” eviction legislation introduced in 2019 by New York State Sen. Julia Salazar.
- Why it matters: The bill would give tenants the right to a lease renewal in most instances and offer those whose rent increased over 3% or 150% of the inflation rate, whichever is higher, a defense against eviction for nonpayment.
- What’s next: New York’s eviction moratorium is set to expire on January 15, 2022. MBA is following these developments.
For more information, please contact Grant Carlson at (202) 557-2765.
3. FHFA Objects to GSEs’ Proposed Duty to Serve Plans
Last week, the Federal Housing Finance Agency determined the revised Duty to Serve Proposed Underserved Markets Plans for 2022-2024 submitted by the GSEs did not meet the non-objection standard for any of the three underserved markets. FHFA has directed the GSEs to submit revisions to improve the plans; however, it still expects implementation to continue based on objectives in the current proposed plans.
- Why it matters: The Duty to Serve program holds the GSEs accountable for serving three important markets – rural housing, affordable housing preservation (including small multifamily rental properties), and manufactured housing.
- What’s next: FHFA will review the revised plans submitted by the GSEs and evaluate their expected impact in each market. MBA will continue to work with FHFA on this and other critically important housing finance issues.
For more information, please contact Bruce Oliver at (202) 557-2840.
4. ESG/CLIMATE RESOURCES
First EU Climate Taxonomy Rules Take Effect
On January 1, publicly listed companies in the European Union (EU) with more than 500 employees are required for the first time to disclose in their annual reports what proportion of their business falls under the EU’s Taxonomy for climate mitigation and climate adaptation requirements. The EU Taxonomy is a green classification system that maps environmentally sustainable economic activities to the EU’s climate and environmental objectives while also providing companies, investors, and policymakers with terms and definitions of what economic activities could be considered environmentally sustainable. Sustainable disclosure rules under the EU Taxonomy beyond climate mitigation and climate adaptation requirements are expected in 2022, 2023, and 2024.
- Why it matters: The EU Taxonomy may contribute to a common language for sustainable finance, and may influence future U.S. disclosure requirements.
- What’s next: MBA staff will continue to monitor and analyze EU Taxonomy rules and EU companies’ efforts to implement those rules.
For more information, please contact Adrian Ballinger at (202) 557-2774.
5. 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.
6. Upcoming 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 webinars – which are complimentary to MBA members:
- The Climate Change Imperative: Exploring the Role of Residential Lenders and Servicers – January 18
- DUS Multifamily Asset Management Perspectives – January 19
- Winning Game Plan for Improving “B” Originators – January 25
- Fair Lending and Redlining, Part I – Overview of Regulations and Enforcement – February 7
- Successful Recruiting in a Changing Marketplace – February 10
- Combating Multifamily Real Estate Financial Crimes and Fraud – March 10
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.
