CREF Policy Update: Republicans Win White House, Senate Majority
Republicans Win White House
Following last week’s decisive election results, Donald Trump will return to the White House as the 47th President of the United States after exceeding his 2020 popular vote and Electoral College tallies in battleground states across the country.
Why it matters: A Trump administration and Republican control of Congress could lead to sweeping attempts at changes to regulatory and legislative policy in 2025 and beyond, from tax reform, increased interest in GSE reform, and new leadership at the Consumer Financial Protection Bureau, Federal Housing Finance Agency, Treasury, and the Department of Housing and Urban Development, among other key considerations.
What’s next: MBA will provide a deeper analysis in the near future on the full outcome of the national election – and what it means for real estate finance.
In the meantime, register for the next Mortgage Action Alliance (MAA) Quarterly Webinar: Post-Election Briefing on Wednesday, Dec. 4, from 3:00pm – 4:00pm ET. You’ll hear from a panel of experts as they reflect on the outcome of the election and how to prepare for what’s ahead next year for our industry on the policy front.
For more information, please contact Bill Killmer at (202) 557-2736 and Pete Mills at (202) 557-2878.
Federal Reserve Cuts Rates by 25 Basis Points; Second Rate Cut of 2024
Softer inflation data and higher unemployment gave the Federal Reserve enough evidence to cut short-term rates by another 25 basis points last Thursday to a target range of 4.50% to 4.75%. The move comes after a 50-basis-point cut in September.
• The FOMC stated that it “will continue to monitor the implications of incoming information for the economic outlook” and “would be prepared to adjust the stance of monetary policy as appropriate.”
Read MBA SVP and Chief Economist Mike Fratantoni’s full commentary here.
For more information, please contact Mike Fratantoni at (202) 557-2935.
MBA-Opposed Rent Control Initiative Defeated in California
With more than 61% of the vote, Californians voted against the approval of Proposition 33 (Prop 33), a statewide ballot proposition designed to enact rent control.
• MBA and the California MBA deployed the Mortgage Action Alliance (MAA) to encourage industry members in the state members to vote “No for Me on Prop 33.” These efforts included an educational webinar that featured a joint presentation including the leadership of the California Apartment Association.
• This is the third time that California voters have rejected rent control.
Why it matters: Prop 33 would have repealed the state’s Costa-Hawkins Rental Housing Act in order to allow local governments to set residential rental rates when a unit became vacant – actions which would have harmed the multifamily real estate market and housing affordability. Repealing Costa-Hawkins would have created a patchwork of state and local price control laws that would have undermined the supply of new housing and make multifamily lending more costly.
What’s next: MBA will continue to work with its state and local association/coalition partners to oppose any continued attempts at rent control throughout the country – while simultaneously promoting workable solutions to the challenge of affordable housing and the need to increase housing supply.
For more information, please review this issue brief and contact William Kooper (202) 557-2737 or Jamey Lynch (202) 557-2818.
Commercial/Multifamily Borrowing Increased 59% in Third-Quarter 2024
Commercial and multifamily mortgage loan originations increased 59% in the third quarter of 2024 compared to a year ago, and increased 44% from the second quarter of 2024, according to MBA’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, released last week.
What they’re saying: MBA’s Head of Commercial Real Estate Research Jamie Woodwell: “After a slow start to the year, borrowing and lending backed by commercial real estate properties picked up during the third quarter…lower interest rates were a key driver of the increase, with the yield on the Ten-year Treasury bond dropping during the quarter from an average of 4.31% in June to 3.72% in September.”
Go deeper: Originations in the third quarter of 2024 varied across the different property types. There was a 510% year-over-year increase in the dollar volume of loans for health care properties, a 99% increase for hotel properties, an 82% increase for retail properties, a 57% increase for industrial properties, and a 56% increase for multifamily properties. Office property originations decreased 3%.
For more information, please contact Jamie Woodwell at (202) 557-2936.
Join: MBA Servicer Council Meeting on Nov. 20
On Wednesday, Nov. 20 at 1:00 pm EST, Servicer Council leaders Brett Adams of Berkadia, Frankie Jones of Lincoln Financial, and Elizabeth Burnett of Slatt Capital will hold an insightful conversation on the election outcomes and how it will affect commercial/multifamily industry servicers. Attendees will also receive a year-end market update.
For more information, or to receive a calendar invite, please contact Jacky Salazar at (202) 557-2746.
Upcoming MBA Education Webinars on Critical Industry Issues
MBA Education continues to deliver timely commercial/multifamily and single-family programming that covers the spectrum of challenges, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars – all complimentary to MBA members:
• Transition Climate Risks: From Initial Assessment to Mitigation – Nov. 20
• Powering CRE Lending & Asset Management with GenAI: Practical Applications – Nov. 21
• High Performance Negotiations – Lessons and Strategies – Dec. 17
• Navigating and Ensuring Accurate Reporting with the MBA Commercial and Multifamily Inspection Form – Jan. 30
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.
