CREF Policy Update: MBA Responds to HUD Proposal on Loan Disbursements
MBA Responds to HUD Proposal on Loan Disbursements
Last Monday, MBA and member lenders responded to the Department of Housing and Urban Development’s (HUD) proposed rule on loan disbursements.
• The proposed rule would allow 1% of mortgage proceeds to be drawn before equity is exhausted. The letter urges HUD to allow mortgage proceeds to be drawn on any construction draw proportional to the amount of debt relative to total cost.
Why it matters: Allowing for disbursements is critical to ensure the loan can be securitized into a Ginnie Mae security. However, allowing only 1 percent will unnecessarily increase the costs of Federal Housing Administration (FHA) multifamily construction lending.
• In an extremely challenging time for multifamily construction financing, this change will facilitate the supply of new rental housing by reducing interest rates on FHA-insured construction loans without presenting an increased risk to HUD or its mortgage insurance fund.
What’s next: MBA will keep members updated on this and other issues pertaining to HUD.
For more information, please contact Megan Booth at (202) 557-2740.
RECAP: MBA Hosts Insurance Conclave in Kansas City
Earlier this month, MBA hosted the Commercial/Multifamily Insurance Conclave in Kansas City, bringing together 190 attendees from more than 70 companies, including Fannie Mae and Freddie Mac, to discuss topics commercial property insurance trends.
• The day-and-a-half event fostered learning, peer to peer discussions, and networking, and consisted of panels on Market Trends, Insurance Regulatory Updates, Modeling, Broker Challenges, and Creative Solutions followed by various networking events.
Why it matters: Rising property insurance costs and diminishing policy options are increasingly a problem in a growing number of states, with insurance requirements becoming more strict. MBA will continue its work with members, regulators, Congress, and other stakeholders on this issue.
What they’re saying: “I look forward to this event every year, I love having the opportunity to learn from my peers, network, and hear different perspectives on the issues facing our industry,” said Rachel Vacarro, Insurance Manager, Colliers Mortgage.
“This Conclave was the best yet with the content, ability to network, and the number of attendees.” said Laura Smith, Senior Managing Director, Head of Servicing Resilience Insurance Analytics.
The second day of the event, reserved for servicers to encourage peer-to- peer conversations, included real-life case studies to go deeper into the conversations and apply strategies that attendees learned the day before.
For more information, please contact Megan Booth at (202) 557-2740, Kelli Burke at (202) 557-2742 and 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. 6
• Mastering Commercial/Multifamily Lender-Placed Insurance–Nov. 7
• Transition Climate Risks: From Initial Assessment to Mitigation–Nov. 20
• Navigating and Ensuring Accurate Reporting with the MBA Commercial and Multifamily Inspection Form–Dec. 5
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.
