CREF Policy Update: July 13, 2023

  1. HUD Extends Equity Disbursement Waiver

Last Wednesday, the Department of Housing and Urban Development extended its waiver for equity disbursements for 221(d)(4) properties through July 5, 2024. The waiver is necessary due to language in the regulations that could prohibit the pooling of these FHA loans into Ginnie Mae securities.

-Why it matters: The previous waiver expired on July 4, 2023. MBA advocated for a regulation change or this waiver extension.
-What’s next: MBA will continue to work with HUD on a permanent solution.

For more information, please contact Megan Booth at (202) 557-2740.

  1. MBA’s Fratantoni Expects Another Rate Hike Despite Jobs Slowdown in June

On Friday, the U.S. Bureau of Labor Statistics reported that employment growth slowed in June, with 209,000 jobs added – the lowest monthly gain since a decline in December 2020. The unemployment rate ticked down to 3.6 percent, and annual wage growth was up 4.4%.

-MBA SVP and Chief Economist Mike Fratantoni said, “The incoming economic data has been filled with conflicting signals. Manufacturing activity remains quite weak, while consumer spending has held up somewhat better, and new home construction and sales have picked up. Our forecast is for a slowdown in economic activity in the second half of 2023, with a recovery in early 2024. The June employment report reinforces that forecast. While job growth and wage growth are trending down, both are still well above the pace that would be consistent with the Federal Reserve’s inflation target. We now expect that the FOMC will raise the federal funds target another 25 basis points at its July meeting.”
-What’s next: The next FOMC meeting is scheduled for July 25-26, 2023.

For more information, please contact Mike Fratantoni at (202) 557-2935.

  1. 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.

For more information, please contact William Kooper at (202) 557-2737.

  1. 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 webinars – which are complimentary to MBA members:

-Mastering Revenue Metrics of Construction to Permanent Loans – July 18
-Managing Costs and Compliance of Lead Generation in a Purchase Market – July 19
-Office Doldrums: Challenges, Opportunities, and Nuances – July 26
-How to Leverage ChatGPT and Other Generative AI Platforms to Safely Improve Borrower Experiences – July 27
-Budgeting and Financial Planning for Non-Believers – August 22
-C-PACE Financing 101: A Commercial/Multifamily Lender’s Overview – August 23

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.