Home > CMF Newslinks > MBA Commercial/Multifamily NewsLink March 2, 2023

MBA CREF Policy Update March 2, 2023

February 23, 2023 |By Mike Flood

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

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FHFA Issues NPR Modifying Portions of Enterprise Capital Rule

Last Thursday, the Federal Housing Finance Agency issued a Notice of Proposed Rulemaking that would amend certain portions of the Enterprise Regulatory Capital Framework. The proposed rule includes modifications of certain provisions of the ERCF related to guarantees on commingled securities, multifamily mortgage exposures secured by properties with government subsidies, derivatives and cleared transactions, and credit scores. These changes aim to provide clarity on certain aspects of the ERCF and better align it with the Enterprises’ risk exposures.

  • Why it matters: As Director Thompson noted, the capital rule continues to be used as a tool to manage the Enterprises’ risk, which has been evident in recent policy decisions. To better reflect the risk profile of government-subsidized properties and to support the Enterprises’ affordable housing goals, the proposed rule sets forth a risk multiplier of 0.6 (40 percent reduction) for multifamily mortgage exposure collateralized by properties with certain government subsidies like Low-Income Housing Tax Credits and Section 8 project-based rental assistance. 
  • What’s next: FHFA will accept public comments on the NPR within 60 days of its publication to the Federal Register. MBA will continue to analyze the NPR in the coming days and will work with members as we prepare our response. 

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

House to Consider Bill to Establish Federal Minimum RON Standards 

Representatives Kelly Armstrong (R-ND) and Madeleine Dean (D-PA) recently re-introduced the H.R. 1059, the SECURE Notarization Act. On February 27, the bill will be debated and voted on by the full U.S. House under suspension of the rules – a process reserved for measures expected to pass the House by at least a two-thirds majority. This MBA-supported measure complements the 42-state remote online notarization (RON) laws by creating a set of minimum federal standards, while allowing individual states the flexibility and freedom to implement their own RON standards. 

  • Why it matters: A direct result of MBA’s outreach and advocacy, H.R. 1059 requires tamper-evident technology in electronic notarizations and provides fraud prevention using multifactor authentication for identity proofing and audiovisual recording of the notarial act. H.R. 3962, the SECURE Notarization Act, was passed by the House last July during the 117th Congress but failed to move through the Senate. 
  • What’s next: Earlier today, MBA’s Mortgage Action Alliance (MAA) issued a Call to Action urging members to contact their representatives to voice their support for the bill. 

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

House Panel Schedules Markup of Data Privacy Proposal

Next week, the House Financial Services Committee will meet to potentially consider 14 separate bills, including Chairman Patrick McHenry’s (R-NC) evolving draft proposal, the Data Privacy Act of 2023. McHenry’s legislation, which he began circulating for discussion months ago, is an attempt to set a new federal standard for how financial firms handle consumer data. The proposal, which would preempt state-level privacy rules and includes provisions that would require companies to provide more disclosures to consumers and give individuals the ability to request their records be deleted.  

  • Why it matters: The HFSC is just one of multiple House and Senate committees that hold jurisdiction of the data privacy issue. In the short term, MBA and its coalition partners are seeking to ensure the McHenry proposal: (1) exempts all Gramm-Leach-Bliley Act (GLBA) regulated institutions; (2) preempts existing state privacy laws to avoid duplicative and conflicting requirements; and (3) does not include a private right of action or unduly expand the CFPB’s (or other federal regulators such as the FDIC’s or OCC’s) existing enforcement authorities.   
  • What’s next: Chairman McHenry will continue to seek input from stakeholders and his committee members – on both sides of the aisle – prior to advancing his Data Privacy Act next week (potentially as early as next Tuesday). Throughout the bicameral, multi-committee debate on data privacy this Congress, MBA staff will continue to seek legislative language that protects our members’ ability to appropriately utilize customer information to make sound mortgage underwriting/origination decisions.  

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

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

MBA 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 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, please 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.

[VIDEO]: mPower Moments: On Owning the Room with Dethra Giles 

In this mPower Moments episode, mPower Founder Marcia M. Davies sits down with Dethra Giles, International Consultant, Best-Selling Author, and CEO of ExecuPrep. Giles discusses her career journey as a consultant as well as her dedication to helping professionals boost their confidence and find their inner voice. During this insightful interview, she also explains the importance of being an active learner and how it can help improve your career.  

  • What’s next: To watch more mPower Moments, click here.

For more information, please contact Marcia Davies at (202) 557-2707.

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

Register for mPact Fundraiser at AT&T Stadium in Dallas 

On, March 6, mPact, MBA’s network for young professionals, will be hosting an in-person fundraiser benefiting Opens Doors Foundation. Join us for a fun night of networking while we tour and dine at AT&T Stadium, home of the Dallas Cowboys. 

  • Why it matters: Since 2018, the mPact Committee has made giving back to their communities a central part of their mission, selecting the MBA Opens Doors Foundation as its charity of choice. Each year, the mPact team takes on a series of fundraisers with the goal of raising funds to support the Opens Doors Foundation’s mission of providing mortgage and rental assistance grants to parents and guardians caring for a critically ill or injured child.  
  • What’s next: Help mPact support families in need while taking care of yourself! Please register here with a $50 donation. Unlimited raffle tickets are also available for $10 each.

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

Register Today for MBA’s mPact Summit on March 7 

On March 7, mPact, 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, please contact Jacky Salazar at (202) 557-2746.

Upcoming 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:

  • Top Commercial Mortgage Servicing Issues in 2023 – March 6
  • Responsibly Using AVMs and AI to Automate Appraisal Underwriting – March 8
  • Conversation with the GSEs: Repurchase Trends and Optimizing Loan Quality – March 8
  • Achieving Success in Ginnie Mae’s Digital Collateral Program – March 14
  • Meet the Homeseeker: 2023’s Most Important Borrower – March 30
  • Warehouse Lending: Latest Activity, Trends and Developments – April 12

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

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

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