CREF Policy Update: June 15, 2023
- Christine Chandler of M&T Realty Capital Corporation Nominated to Be 2024 MBA Vice Chair
Last Wednesday, MBA announced that Christine Chandler, Executive Vice President, Chief Credit Officer and Chief Operating Officer with M&T Realty Capital Corporation (RCC), has been nominated to serve as MBA’s Vice Chair for the 2024 membership year. She is expected to be installed at MBA’s 110th Annual Convention in Philadelphia in October.
• Why it matters: Chandler has been with M&T since 1991 and has more than 30 years of experience in commercial real estate finance. Since 2018, she has been responsible for making credit decisions for M&T RCC multifamily and healthcare transactions underwritten in the Fannie Mae and Freddie Mac (Agency) and Federal Housing Administration (FHA) platforms as well as managing the company’s operations and its Asset Management Group and Transformation team. Active in various committees and groups related to the mortgage banking industry, Chandler is a voting member of MBA’s Board of Directors, serves as the 2023 Chair of MBA’s Commercial Real Estate/Multifamily Finance Board of Governors (COMBOG), and was appointed to MBA’s DEI Committee in 2022 and its Audit Committee in 2021. She is a sought-after speaker at industry conferences and is a passionate advocate for mPower, MBA Promoting Opportunities for Women to Extend their Reach, the largest networking organization for women in real estate finance.
• Matt Rocco, 2023 MBA Chairman and President of Colliers Mortgage, said, “Christine is a passionate and influential leader in real estate finance and is a terrific choice to lead MBA and its members through the challenges and opportunities our industry faces. She is one of MBA’s most active members and is a strong advocate of ensuring sustainable homeownership and rental housing opportunities in communities nationwide. I congratulate her for this well-deserved honor of joining MBA’s leadership ladder.”
For more information, please contact Adam DeSanctis at (202) 557-2727.
- MBA Responds to HUD Floodplain Proposal
Last Tuesday, MBA submitted comments in response to an FHA proposed rule on Floodplain Management and Protection of Wetlands; Minimum Property Standards for Flood Hazard Exposure; and Building to the Federal Flood Risk Management Standard. The proposal moves to newly defined floodplain areas based on a Climate Informed Science Approach (CISA) and would impact FHA-insured single-family and multifamily housing.
• Why it matters: The new proposal would increase elevation requirements in expanded floodplain areas and would propose higher levels of required flood insurance.
• What’s next: MBA urged the Department of Housing and Urban Development (HUD) to reconsider the entire proposal and remains committed to working with FHA on how to best address flood risk for FHA-insured and assisted housing.
For more information, please contact Megan Booth at (202) 557-2740.
- HFSC Ranking Member Waters Petitions Treasury Regarding Exodus of Insurance Coverage
Last week House Financial Services Committee Ranking Member Maxine Waters (D-CA) penned a letter to Treasury Secretary Janet Yellen expressing strong concern “regarding the exodus of insurance companies and entire lines of coverage” from California. The letter, which was also addressed to the Director of Treasury’s Federal Insurance Office (Steven Seitz), referenced similar problems in other states, including Florida and Louisiana.
• Why it matters: A major crisis has emerged in the commercial real estate sector regarding the cost and availability of insurance lines in many parts of the country. The problem is impacting current loans (both commercial and residential) and, importantly, our CREF members’ ability to originate new loans.
• What’s next: MBA is establishing a member-led task force to help: (1) determine how lenders are approaching the crisis, and (2) develop potential state and federal options to address the flight of insurance companies – and entire lines of coverage – from certain key states.
For more information, please contact Mike Flood at (202) 557-2745 and Bill Killmer at (202) 557-2736.
- New York Legislature Fails to Reach Agreement with Governor Hochul on a Housing Plan
The New York Legislature is planning to complete its 2023 legislative session later today, but following months of negotiations, it will depart Albany without an agreement to address the state’s housing supply and affordability needs. The agreement would have included several MBA-supported policies – such as commercial-to-residential building conversions and an extension of the 421-a tax incentive – but also others MBA has opposed, such as “good cause” eviction. In a related positive development, legislation to tax mezzanine debt and preferred equity investment has received no action since bills were introduced in early January.
• Why it matters: The 421-a program was allowed to lapse at the end of the 2022 legislative session, and an extension is needed to aid developers at risk of losing this important incentive for affordable housing development.
• What’s next: MBA will continue to work with the New York MBA and other industry partners to advocate for industry priorities when the Legislature reconvenes in 2024.
For more information, please contact William Kooper at (202) 557-2737.
- Update on Nevada Rent Control Legislation
MBA has been actively opposing rent control proposals in Nevada and several other states. Last week, Nevada Governor Joe Lombardo vetoed AB 298, which included state-wide rent control for certain tenants. The Governor cited overly burdensome provisions that would negatively impact Nevada businesses. However, Nevada legislatures were considering two other bills, and passed one of them before adjourning ( SB 371). This legislation clarified local governments’ ability to pursue affordable housing initiatives, which could include rent control. The bill was recently the subject of a Mortgage Action Alliance Call to Action and now awaits Governor Lombardo’s consideration.
• Why it matters: Some state policymakers have embraced the false narrative that rent control is an effective tool in addressing housing affordability issues in their communities. Instead, it creates a barrier between property owners and tenants while discouraging property owners from maintaining or upgrading their properties. This rent control legislation will remove incentives to develop new affordable housing units, leading to higher housing costs in Nevada’s rental housing market. It would also negatively impact the value of those units and simultaneously limit the number of property transactions in Nevada.
• What’s next: MBA will continue to work with the Nevada Mortgage Lenders Association and industry partners to oppose rent control.
For more information, please contact William Kooper at (202) 557-2737 or Liz Facemire at (202) 557-2870.
- 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.
- 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:
• MSR Transfers: Balancing Risk, Customer Experience and Efficiency – June 15
• Expanding Homeownership through a Commitment to DEI – June 21
• How to Leverage Document AI for Unparalleled Efficiency in Loan Production and Loan Servicing – June 27
• Mastering Revenue Metrics of Construction to Permanent Loans – July 18
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.
