MBA CREF Policy Update Feb. 16, 2023

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

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House Financial Services Subcommittee Convenes Legislative Hearing on Federal Data Privacy 

On Wednesday, the House Financial Services Committee Subcommittee on Financial Institutions and Monetary Policy held a hearing titled, “Revamping and Revitalizing Banking in the 21st Century.” The panel focused on several bills, including a discussion draft of legislation that would reform the federal data privacy framework. Several members of the Subcommittee noted that including a private right of action into federal enforcement under the Gramm-Leach-Bliley-Act (GLBA) would have serious consequences on industries that collect and hold consumer data. A complete summary of the hearing can be found here.     

• Why it matters: The legislation included in the initial hearing for this Subcommittee telegraphs the set of issues that Republican members will likely prioritize.   
• What’s next: The full Financial Services Committee is expected to hold a markup at the end of the month that will likely include the data privacy legislation.         

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

House Appropriations Committees Officially Organizes for the 118th Congress 

This week the House Appropriations Committee completed its organizational markup that adopted rules for the Committee and finalized the roster for the Full Committee and all Subcommittees. The roster for Republican and Democratic subcommittee assignments can be found here. 

• Why it matters: All the committees in Congress have finalized organizational meetings.  
• What’s next: House appropriators will begin working on the 12 separate Fiscal Year 2024 funding bills – including for the Department of Housing and Urban Development (HUD) – in the coming weeks, with the target date of spring “markups” before advancing the legislation to the Senate.  

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

Senate Banking Committee Holds Housing Hearing

The Senate Banking Committee held a hearing last week titled, “The State of Housing 2023.” The witnesses were Dr. Christopher Herbert, Managing Director, Harvard Joint Center for Housing Studies; Dr. Robert Dietz, Chief Economist and Senior Vice President for Economics and Housing Policy, National Association of Home Builders; and Mr. Lance George, Director of Research and Information, Housing Assistance Council. A summary of the hearing can be found here. 

• Why it matters: Housing issues have the potential to be treated as a bipartisan priority of the committee this Congress. Senators raised a broad spectrum of concerns, including multifamily housing shortages, housing investment tax credits, eviction prevention and rent control, housing vouchers, burdensome regulations, and zoning reforms.  
• What’s next: MBA will work with members of the committee and other lawmakers as they develop and introduce housing-related legislation.  

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

MBA Submits Comments on the Federal Reserve Board Proposed Principles for Climate-Related Financial Risk Management for Large Financial Institutions

On Tuesday, MBA submitted comments on the Federal Reserve Board’s proposed draft principles related to the safe and sound management of climate-related financial risk for large financial institutions with more than $100 billion in total consolidated assets. MBA’s comments echoed an appreciation that the Board, Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) propose to rely on a principles-based approach to managing climate-related financial risk, one that leverages existing risk management and supervisory processes. According to the Fed, the draft principles “would provide a high-level framework for the safe and sound management of exposures to climate-related financial risks.” The Fed framework appears similar to the draft principles released by the OCC and the FDIC. MBA’s comments mirrored those submitted on the OCC and FDIC draft principles (read: OCC and FDIC ).

• Why it matters: The Federal Reserve stated that they intend to work with the OCC and FDIC on final interagency guidance related to this matter. The draft principles may affect supervisory expectations and add additional compliance costs for CREF members.
• What’s next: MBA will monitor developments closely and communicate any relevant updates to members.  

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

Freddie Mac Releases Tenant Protections Analysis

On Monday, Freddie Mac released a white paper covering a comparative analysis of tenant protections provided by state law. The paper covers many different topic areas, including tenant screening, habitability, and pre-eviction protections, and is intended to provide understanding of the diverse state laws that govern the landlord/tenant relationship. 

• Why it matters: The paper comes on the heels of the Biden-Harris Administration’s 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. In a press statement following that announcement, MBA President and CEO Bob Broeksmit, CMB, said that MBA “will examine the Administration’s actions in greater detail and participate in a constructive and collaborative approach to help tenants and increase safe and affordable multifamily housing.” 
• What’s next: MBA will continue to analyze the white paper and report all relevant information to our members.

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

New Mexico Rent Control Legislation Laid Aside for Remainder of Session

This week, a bill to implement rent control in New Mexico was considered and “laid aside” by the first committee to review it. Specifically, SB 99 would repeal the current prohibitions placed upon counties and municipalities to enact local rent control policies. This procedure by the Senate Health and Public Affairs Committee effectively eliminates the bill from further consideration during the remainder of the state’s legislative session. With assistance from MBA, the New Mexico Mortgage Lenders Association led an effort to oppose the bill and successfully engaged industry partners in additional advocacy.

• Why it matters: Because New Mexico only considers policy legislation every other year, if the bill status remains unchanged during the remainder of session, the soonest the issue could be reconsidered is 2025. 
• What’s next: MBA will continue to work with its state association partners and national sister trade groups to advocate for the interests of its commercial and multifamily member companies in state capitals.

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

Register Today for MBA’s mPact Summit on March 7 

On March 7, mPact, MBA’s network for young professionals, will host its first mPact Summit in Plano, Texas. Join an exclusive group of young professionals for a day of career development and industry programming. Young professionals have selected the sessions and developed networking opportunities with senior leaders for this inaugural event. 

• Why it matters: Event topics include developing leadership skills, learning how to navigate your career, and building and practicing networking skills. You won’t want to miss this opportunity.   
• What’s next: Registration is capped at 100 participants and closes on February 27. Register now.

For more information, contact Jacky Salazar at (202) 557-2746.

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:

• Five Steps to Improve Efficiency, Compliance and Automation in Your Mortgage Operations – February 16
• Single-Family Rental Remains Resilient – February 23
• Market Recommendations and Profitability Insights for 2023 – February 28
• Top Commercial Mortgage Servicing Issues in 2023 – March 6
• Responsibly Using AVMs and AI to Automate Appraisal Underwriting – March 8

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.