MBA CREF Policy Update April 20, 2023

MBA Issues MAA Call to Action to Oppose Harmful “Just Cause Eviction” Legislation in Colorado
MBA’s Mortgage Action Alliance (MAA) issued a Call to Action that urges Colorado MAA members to halt HB23-1171,“Just Cause Requirement Eviction of Residential Tenants” legislation, which would limit Colorado property owners’ ability to properly manage their properties and enact sweeping restrictions on property owners’ ability to improve or renovate rental units.

• Why it matters: The “Good Cause Eviction” legislation is currently pending before the Senate Local Government and Housing Committee after it passed the House on March 15. The legislation would remove incentives to develop new affordable housing units, leading to higher housing costs in Colorado’s rental housing market that would negatively impact the value of those and limit the number of property transactions in Colorado. This will be harmful to the entire real estate finance industry in general – and especially multifamily mortgage lenders. Moreover, if this legislation succeeds, it is certain to be emulated by other states. As written, the proposal would only allow non-renewals of lease contracts if property owners provide a “just” reason to end a rental lease, severely limiting an owner’s ability to finalize leases and make property improvements.
• What’s next: Colorado MAA members need to contact their state Assembly members and senators today and urge them to remove this proposal from the annual state budget before it is considered by the Assembly and Senate.

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

FHFA to Request Input on Multifamily Tenant Protections in May
Last week, the Federal Housing Finance Agency announced that it will issue a Request for Input (RFI) on multifamily tenant protections in May 2023. FHFA’s upcoming RFI is part of the Administration’s January 2023 announcement of a set of actions it will take in order to enhance tenant protections and further principles of fair housing. The announcement included new actions by several federal agencies, a “Blueprint for a Renters Bill of Rights,” and a voluntary challenge to the industry to adopt stronger policies and practices that better serve tenants.
• Why it matters: MBA and other industry stakeholders have met with the Biden Administration numerous times over the last several months on the topic of tenant protections and have stressed the importance of increasing affordable housing supply and avoiding unnecessary regulations such as rent control.
• What’s next: MBA will work with members to review the RFI in May and will provide recommendations by the announced deadline.

For more information, contact Stephanie Milner at (202) 557-2747.

Total Commercial and Multifamily Lending Declined 8 Percent in 2022
Total commercial real estate mortgage borrowing and lending equaled $816 billion in 2022, which is an 8 percent decrease from the record $891 billion in 2021 and a 33 percent increase from $614 billion in 2020. This is according to the Mortgage Bankers Association’s 2022 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation.
• Jamie Woodwell, MBA’s Head of Commercial Real Estate Research, said, “Borrowing and lending backed by commercial and multifamily properties started 2022 strong but then dropped off because of rising interest rates, uncertainty about property values, and increased questions about the economy and some property fundamentals. Despite the eight percent annual decline, the $816 billion in total volume was still the second highest on record. Bank lending ran against the trend, increasing by 12 percent to $409 billion. A key question for 2023 is when the market will have stabilized enough for the logjam in new deal activity to break.”

For more information, please contact Jamie Woodwell at (202) 557-2936.

Rent Control Map and State Trackers
• Given the ongoing proposals and ballot initiatives across the country, MBA has published an online map that provides an overview of state and local rent control laws. MBA will follow ongoing developments on this issue and will update the map accordingly.
• 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

Upcoming and Recent MBA Education Webinars on Critical Industry Issues
MBA Education continues to deliver timely single-family and commercial/multifamily 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:
• Multifamily Finance Faces Headwinds Head-On – April 18
• Turn Distressed Mortgage Loans into Performing Portfolios Faster – April 20
• ROI Guide to Risk & QC Technology – April 25
• LIBOR and the Impact on Legacy ARMs – April 25
• MSR Transfers: Balancing Risk, Customer Experience and Efficiency – May 11
• Explore Build-to-Rent Advantages, Trends & Opportunities – May 18

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

For any questions, please contact David Upbin at 202-557-2931.