CREF Policy Update March 7: MBA Statement on the House Passage of the FY 2024 Funding Package
MBA Statement on the House Passage of the FY 2024 Funding Package
MBA’s President and CEO Bob Broeksmit, CMB, issued the following statement on the passage of six fiscal year 2024 budget bills, which includes funding for the Department of Housing and Urban Development (HUD), Veterans Affairs (VA), and the Department of Agriculture (USDA):
“MBA is pleased the House has passed a spending package that includes important funding to support single-family and multifamily housing markets and consumers.
We especially support the government spending to boost homeownership opportunities and affordable rental housing. This includes a much-needed increase in funding for Ginnie Mae salaries and expenses, dedicated funding for Federal Housing Administration (FHA) IT modernization, backing for homeownership counseling, requiring HUD to take actions to increase FHA multifamily lending for new construction and rehabilitation, and $100 million in grants to encourage localities to remove legal and regulatory barriers that impede housing development.
We also agree with the VA language regarding the need to provide timely payment relief to distressed Veteran homeowners and will continue to call on Congress to authorize and fund a permanent partial claim program.
MBA encourages the Senate to pass this spending package before March 9th to ensure the continuity of critical government home lending programs and operations.”
MBA Opposes FFB Risk Sharing Program Extension; Calls on HUD to Address High Fees
Last Thursday, the Biden administration announced New Actions to Boost Housing Supply and Lower Housing Costs, outlining initiatives it believes will create more affordable rental housing.
• The announcement includes actions to extend the Federal Financing Bank Risk Sharing Program (FFB), which allows state and local housing finance agencies (HFAs) to offer FHA-insured multifamily loans if they retain a portion of the risk.
• MBA strongly opposes the FFB program, as it creates an unfair competitive advantage over lenders that participate in HUD’s Multifamily Accelerated Processing (MAP) program and has less rigorous underwriting and fewer requirements.
What they’re saying: In a press statement immediately following the announcement, MBA President and CEO Bob Broeksmit, CMB, said, “While we agree with the Administration that there is a desperate need for more affordable housing supply, extending the FHA-FFB Risk Sharing program is unnecessary, as it undermines the successful FHA Multifamily Accelerated Processing (MAP) program and creates unfair competition with the private sector.”
• Broeksmit added, “Instead, the Administration should direct HUD to take meaningful action to make its existing programs more attractive and useful for participating lenders and borrowers. Reducing or eliminating more than 20 unnecessary and duplicative fees, increasing statutory loan limits, lowering multifamily mortgage insurance premiums and excessive escrow account requirements, and increasing the wind/named storm insurance deductibles would have more impact in developing more affordable rental housing.”
What’s next: MBA will continue to push HUD to (i) increase oversight of the FFB program so that there is a level playing field and sound underwriting policies for much-needed rental housing, and (ii) take action to improve the MAP program, including reducing and/or limiting excessive fees and improving insurance requirements. This issue will also be a point of emphasis at MBA’s upcoming National Advocacy Conference’s CREF track.
For more information, please contact Megan Booth at (202) 557-2740.
Washington State Rent Control Legislation Dies in Senate Committee
Last Monday, a rent control bill (H.B. 2114) failed to advance out of the Senate Committee on Ways and Means in the state of Washington.
• The bill would have prohibited all landlords in Washington from increasing rent by more than 7% during any 12-month period. MBA has been actively opposing rent control efforts in the state of Washington and in coordination with the Washington Mortgage Bankers Association issued a Mortgage Action Alliance Call to Action to oppose the bill earlier this month.
Why it matters: Some state policymakers have embraced the false narrative that rent control, or capping rent increases, 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.
What’s next: MBA will continue to work with the Washington Mortgage Bankers Association and industry partners to oppose rent control.
For more information, please contact Stephanie Milner (202) 557-277 or Liz Facemire (202) 557-2870.
South Dakota Division of Banking Rescinds FINCEN Rules on Non-Residential Mortgage Licensees
South Dakota Division of Banking (SDDB) rescinded Memorandum 11-004 (Memo), which would have applied the Financial Crimes Enforcement Networks (FinCEN) final rule dated Sept. 15, 2020, to non-residential mortgage licensees in the state.
In the Memo, SDDB claimed the FinCEN final rule required non-residential mortgage lenders to implement Anti-Money Laundering programs under 31 USC 5318 (h)(1), citing the removal of exceptions for non-depository financial institutions subject to state banking authorities.
Go deeper: MBA disagreed with this interpretation due to the Bank Secrecy Act’s (BSA) definition of a “financial institution” and subsequently “loan finance company.” These definitions do not cover non-residential mortgage companies and therefore non-residential mortgage companies would not be subject to BSA–or this FinCEN final rule.
Why it matters: SDDB misinterpreting the FinCEN final rule and applying them to non-residential mortgage lenders would cause significant compliance concerns. Staying ahead of the issue and educating SDDB on it will help to ensure no other state follows suit.
What’s next: MBA will continue to monitor for other state activity around this FinCEN final rule interpretation and continue communication with SDDB going forward.
For more information, please contact Stephanie Milner (202) 557-277 or Liz Facemire (202) 557-2870.
House Financial Services Committee Holds Truncated Markup
Last Thursday, the House Financial Services Committee held a markup of various bills covering a range of policy issues, including housing, national security, and digital assets (among others).
• MBA sent a letter to members of the Committee ahead of the hearing, highlighting its views on two bills that had been slated for markup but were pulled from consideration.
Why it matters: The markup was shortened due to the urgency of a government funding/Continuing Resolution extension vote held early Thursday afternoon, with debate on only five bills – none of them of primary concern to our industry.
What’s next: These markups are an initial step toward eventually bringing these bills to the floor of the full House of Representatives. MBA will stay engaged with committee leaders on these (and other priority) issues impacting real estate finance.
For more information, please contact Rachel Kelley at (202) 557-2816 or Bill Killmer at (202) 557-2736.
REGISTER: MBA’s National Advocacy Conference on March 19-20; Separate CREF Track!
Join us in Washington, D.C. to meet with key policymakers, network with colleagues across the industry, and hear from policy experts on the topline issues impacting the industry – including a dedicated CREF track exclusively for our commercial/multifamily members. An exclusive reception will be held on Tuesday, March 19, at the National Museum of Women in the Arts. Lend your voice to our efforts and bring your expertise and experiences to the table.
• Check out MBA’s group passes pricing.
Why it matters: Your participation at NAC ensures that members of the 118th Congress and other policymakers understand how proposed legislation affects your employees, your end users, and the communities you (and they) serve.
What’s next: MBA will continue to advocate on issues that impact the commercial/multifamily sector of the real estate finance industry.
For more information, please contact Jamey Lynch, AMP, at (202) 557-2818.
REGISTER: MBA’s State and Local Workshop on March 18-19
Join us in Washington, D.C. the day before the National Advocacy Conference begins to collaborate with industry peers on shared challenges and priorities and receive actionable advice to grow your state or local association’s member base.
Why it matters: In today’s challenging market, it’s more important than ever that state and local associations are helping members not just survive but grow.
What’s next: Take advantage of savings and maximize your impact when you register for both the State and Local Workshop and the National Advocacy Conference.
For more information, please contact Anthony Siller at (202) 557-2944.
Register: MBA’s mPact Summit on April 4 in Texas
Meet us in Texas for a full day of career development and networking on Thursday, April 4, 2024.
Back by popular demand, this event is built by – and for – young professionals in the real estate industry who are focused on helping you get to the next level.
Why it matters: Event topics include developing leadership skills, learning how to navigate your career, and building and practicing networking skills. You don’t want to miss this opportunity.
What’s next: Register by March 29 to reserve your spot!
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:
• Private Credit Finance 201: A Deep Dive into Debt Funds and Their Impact to Commercial Real Estate Lending – March 6
• A Crisis of Identity in Lending–Best Practices for Securing the Borrower Experience – March 12
• Increasing Your Overall Productivity Through Special Purpose Credit Programs (SPCP) – March 13
• Who Are Today’s Borrowers? A Look at the Lending Preferences and Expectations of Today’s Consumers – March 14
• Making Sense of Multifamily Finance – March 14
MBA members can register for any of the above events and view recent webinar recordings by clicking here.
For any questions, please contact David Upbin at (202) 557-2931.
