MBA CREF Policy Update Nov. 3, 2022

Bill Killmer bkillmer@mba.org; Mike Flood mflood@mba.org

Congratulations to Matt Rocco, Chairman of the Board and Chief Executive Officer of Grandbridge Real Estate Capital, for being sworn in as 2023 Chairman at MBA’s Annual Convention. Read Matt’s speech here, and this HousingWire article on his mission to expand affordable rental housing.

MBA is now accepting applications for its Commercial/Multifamily Diversity, Equity, & Inclusion Leadership Awards. For more information and to apply, click here.

Sign MBA’s Home for All Pledge: Join the 320+ 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. 

Broeksmit Calls on CFPB to Establish Clear and Consistent Standards

In prepared remarks on Monday at MBA’s Annual Convention, President and CEO Bob Broeksmit, CMB, called on the Consumer Financial Protection Bureau (CFPB) to establish clear and consistent standards when enacting rules by providing opportunities for stakeholder input through notice and public comment periods. He noted that the Bureau is sometimes announcing new legal obligations without formal process or deliberation, which “exacts high cost on markets and, ultimately, consumers.”  

• Why it matters: The CFPB has used processes outside of the rulemaking process such as “circulars,” changes to exam manual guidance, and blog posts to announce new compliance requirements or to change standards. These mechanisms are not legally binding and are often difficult to understand and implement. On Wednesday – two days after Broeksmit’s speech – the Bureau issued a sweeping circular and guidance without notice and comment that makes far-reaching new policy on certain bank fees – essentially validating MBA’s concerns about the Bureau’s failure to provide stakeholders constructive notice or a formal process for deliberation.
• What’s next: MBA will continue to work with industry stakeholders to ensure the Bureau understands the need for clear and consistent rulemaking that allows for stakeholder input and provides market certainty and lower costs to consumers.

For more information, contact Justin Wiseman at (202) 557-2854.

SEC Inspector General Releases Report on Management and Performance Challenges  

Earlier this month, the Securities and Exchange Commission (SEC) Office of the Inspector General released a report examining the SEC’s management and performance challenges amidst the agency’s relatively active rulemaking. 

• Why it matters: The agency is currently in the process of finalizing over a dozen economically significant rules, including new regulations for climate-related disclosures for public companies. The report noted that managers were concerned that the uptick and pace of rulemaking have tested staff, resulting in an increased reliance on temporary staff with limited regulatory experience. 
• What’s next: The report also noted that agency managers were concerned these management and performance challenges could open SEC rulemaking to legal challenges. MBA will follow ongoing developments of SEC-related rulemakings that impact members’ business activities. 

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

State Trackers

• State eviction moratorium and legislative activity tracker available here and here.

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

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:

• Climate Risk in CREF – What we know and are learning – November 1
• Augmenting Talent with Technology – November 8
• TRID Housekeeping & Latest Information – November 15
• Inflation, Interest Rate, Cap Rates & Values: What Do We Really Know? – November 30
• Ensuring HMDA Data Integrity and Common Reporting Issues – December 14
• Ten Things Your Company Must Do in 2023 – January 18

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

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