MBA CREF Policy Update Feb. 23, 2023

Bill Killmer; Mike Flood

Sign MBA’s Home for All Pledge: Join the 380+ 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.

MBA Issues MAA Call to Action Urging HUD to Provide Greater Flexibility for FHA Multifamily Insurance Programs 

On Monday, MBA’s grassroots advocacy arm, the Mortgage Action Alliance (MAA), issued a Call to Action asking members to contact their U.S. Senators and Representatives and urge them to weigh in with authorizers and appropriators to help spur more policy flexibility within the Federal Housing Administration’s (FHA) multifamily insurance programs. 

  • Why it matters: While the Biden Administration is calling for significant increases in housing supply, FHA’s industry partners are facing growing construction and labor costs, supply chain issues, and rising interest rates. The Multifamily Accelerated Processing (MAP) program at the Department of Housing and Urban Development (HUD) is critical to supporting the creation of safe, decent, and affordable rental housing. HUD must work more effectively with lenders to ensure the continued production of multifamily housing units. 
  • What’s next: Your advocacy matters – act now. Ask your Senators and U.S. Representative to urge the appropriate Senate committees (Banking and Appropriations) and House committees (Financial Services and Appropriations) to conduct immediate oversight and request briefings from HUD to help accelerate the creation of safe, quality housing through the implementation of these suggested changes. 

For more information, contact Ethan Saxon at (202) 557 2913, Tallman Johnson at (202) 557-2866, Alden Knowlton at (202) 557-2741 or Borden Hoskins at (202) 557-2712.

MBA, Industry Trades Request Extended Comment Period for SEC’s Securitization Conflicts of Interest Rule 

This week, MBA and 10 other trade associations submitted a joint trades letter to the Securities and Exchange Commission (SEC) requesting an extension to the recently re-proposed Securitization Conflicts of Interest Rule. The proposed rule is intended to prevent the sale of certain securities that could be subject to material conflicts of interest. The proposal would prohibit securitization participants from engaging in certain transactions that could incentivize a securitization participant to structure a security in a way that would put the securitization participant’s interests ahead of those of the investors. The SEC originally proposed this rule in September 2011 and allowed a comment period of approximately five months. 

  • Why it matters: The proposed rule has an extensive scope and will likely have wide-ranging impacts on market participants. There is concern that the reproposed rule could lead to an explicit prohibition on certain ordinary-course securitization activities, including normal prudential risk management activities of banks and other financial services companies and the extension of consumer and commercial credit. An extended comment period is needed to accurately assess all possible impacts of the proposed rule and to ensure there are no unintended consequences.  
  • What’s next: An extension to June 24, 2023, has been requested instead of the current deadline for comments due on March 27, 2023. MBA will continue to engage with the SEC on this and other critical housing issues 

For more information, contact Stephanie Milner at (202) 557-2747 or Sasha Hewlett at (202) 557-2805.

MBA #CREF23 Forecast: Commercial/Multifamily Borrowing and Lending Expected to Fall to $684 Billion 

Total commercial and multifamily mortgage borrowing and lending is expected to fall to $684 billion this year, which is a 15 percent decline from an expected 2022 total of $804 billion. This is according to MBA’s updated baseline forecast released this week at the  2023 Commercial/Multifamily Finance Convention and Expo.

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

MBA Honors CBRE Capital Markets, Inc., and Genesis Bank as 2023 Diversity, Equity, and Inclusion Commercial/Multifamily Leadership Award Winners

On Monday, MBA announced at its 2023 Commercial/Multifamily Finance Convention & Expo that CBRE Capital Markets, Inc. and Genesis Bank have been recognized as 2023 Diversity, Equity, and Inclusion (DEI) Commercial/Multifamily Leadership Award recipients.

  • Why it matters: CBRE Capital Markets, Inc. was awarded for its approach to DEI – driving measurable progress and accelerating the pace of change for their people and clients with outcome-based metrics, training and resources, and accountability through reporting and performance. For more information on CBRE’s DEI efforts, click here. Genesis Bank was recognized for its commitment to supporting lower-income, minority, and rural communities. Their commitment is outlined in a public three-year DEI Strategic Plan. Multifamily loans constitute approximately 80 percent of the Bank’s lending activity – of these loans, 85 percent are in majority-minority tracks, and 74 percent are in low-to-moderate income (LMI) tracts. For more information on Genesis Bank’s DEI efforts, please click  here .
  • What’s next: For more information on MBA’s DEI Leadership Awards, click here.

For more information, contact Amber Lawrence at (202) 557-2766.

MBA Joins Commercial Real Estate Diverse Supplier Consortium

This week, MBA joined six real estate trade associations to announce a first-of-its-kind alliance to foster supplier diversity in real estate. The Commercial Real Estate Diverse Supplier (CREDS) Consortium will expand economic opportunities for minority- and women-owned businesses (MWBEs) in the chain of providers that supply the real estate industry.

  • Why it matters: The CREDS Consortium has launched a two-year pilot program that will run through the end of 2024 with SupplierGATEWAY, a leading supplier management software platform and minority-owned firm that automates and simplifies supplier and vendor management. SupplierGATEWAY’s products include supplier sourcing, registration, risk management, compliance, and management—and they provide support for corporate responsibility, diversity, and inclusion goals. In addition to MBA, associations participating in the CREDS Consortium include CREW Network, ICSC, NAIOP, Nareit, National Multifamily Housing Council, and The Real Estate Roundtable. 
  • What’s next: To learn more about the CREDS Consortium, please click here

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

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 and here.

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:

  • 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
  • Achieving Success in Ginnie Mae’s Digital Collateral Program – March 14

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.