CREF Policy Update: MBA Requests Guidance on HUD Flood Rule
MBA Requests Guidance on HUD Flood Rule
Last Thursday, MBA urged the Department of Housing and Urban Development (HUD) to delay implementation of the Federal Flood Risk Management Standard (FFRMS) until the appropriate guidance and tools are available for implementation.
• The rule, which was effective Oct. 1 for new Federal Housing Administration (FHA) multifamily loans, requires properties to identify their location in the new expanded FFRMS floodplain and take various measures, including elevating properties, to comply.
Why it matters: The recent events in the Southeast demonstrate the importance of building resiliency, and the safety concerns for residents has never been more evident. However, HUD has yet to publish clear guidance on the rule, and lenders, developers, and HUD staff alike do not yet have the appropriate direction or the required tool to make determinations about the floodplain status of a given property.
What’s next: MBA will continue to advocate for additional guidance and flexibility for properties to ensure that housing and safety needs are met in all communities across the nation.
For more information, please contact Megan Booth at (202) 557-2740.
FHFA Proposes Rule on FHLB Unsecured Credit Limits
Last week, the Federal Housing Finance Agency (FHFA) issued a proposed rulemaking to expand access to liquidity for the Federal Home Loan Banks (FHLBs).
• The proposed rule would align the treatment of interest-bearing deposit accounts (IBDAs) and other authorized overnight investments with the treatment of Federal Funds sales.
• Currently, overnight federal funds are excluded from the more restrictive “general limit” on unsecured credit to a single counterparty and are limited only by the higher “overall limit.” Updating this regulatory treatment may provide greater flexibility and improved cost to yield than overnight federal funds and improve the FHLBs’ ability to provide liquidity to members.
Go deeper: This rulemaking is a result of industry engagement following the release of FHFA’s FHLB at 100 Report. Director Sandra Thompson noted that these modernizations will create more flexibility for the FHLBanks in their liquidity management, which will allow them to better serve their members, particularly during periods of market stress.
What’s next: The public is invited to submit comments on the proposed rule within 60 days of publication in the Federal Register. MBA will review the proposed rule in the coming weeks and will continue to engage with FHFA on this and other critical housing issues.
For more information, please contact Sasha Hewlett at (202) 557-2805.
FHA Heeds MBA’s Recommendations; Updates Cybersecurity Reporting Requirements
Last Monday, in response to MBA’s recent letter and ongoing advocacy, FHA posted a draft Mortgagee Letter (ML) to the FHA Single Family Drafting Table that revises its cybersecurity incident requirements.
• The draft ML closely aligns with MBA’s recommended modifications, narrowing the definition of a Reportable Cyber Incident to those that “materially disrupt or degrade the FHA-approved mortgagee’s ability to meet its operational obligations for originating or servicing FHA-insured mortgages.”
• In addition to narrowing the scope of a Reportable Cyber Incident, FHA is also considering extending its timeline for reporting a cyber incident to 36 hours instead of 12 hours. MBA has recommended 48 hours, which would match Ginnie Mae’s timeline.
Why it matters: As the mortgage industry continues to face new threats within the cybersecurity landscape, it is crucial for governmental authorities to provide clear, aligned, and practical requirements and guidance.
What’s next: MBA will work with its Government Loan Production Subcommittee to respond to the proposed ML, advocating for FHA to further align its reporting timeline requirements with Ginnie Mae’s 48-hour window until a federal standard can be established.
For more information, please contact Darnell Peterson at (202) 557-2922 or Megan Booth at 202-557-2740.
California Delays, Makes Minor Tweaks to Costly, Climate Impact Disclosure Laws
Recently, California Governor Gavin Newsom signed legislation (SB-219) that amends the Corporate Climate Data Accountability Act of 2023 (SB-253) to provide six additional months (until July 1, 2025) for the California Air Resources Board to write rules to implement SB 253’s emissions reporting requirements for companies operating in the state and subject to its provisions.
• The California MBA (and the national MBA) originally opposed SB 253 and urged Mortgage Action Alliance members living in California to tell the Governor to veto it.
• SB-253, along with related legislation enacted last year (SB-261), requires companies operating in California to report their various points of climate impact or face penalties. Both efforts create a complex reporting and accounting regime for companies to navigate with little to no baseline reference or guidance.
Why it matters: California’s Scope 3 reporting requirements are troubling for two reasons. They represent a significant departure from the well-considered approach of the Securities Exchange Commission’s (SEC) final rule on emissions reporting, which, as a result of MBA’s advocacy efforts, eliminated Scope 3 reporting. California’s law also offers encouragement to other states seeking to establish their own climate disclosure policies that could lead to a costly patchwork quilt of divergent requirements.
• While Governor Newsom noted his concerns regarding the overall fiscal impact on business of SB-253 when he signed it, SB-219’s delay and minor amendments neither address nor improve upon the significant challenges of implementing this “first in the nation” law.
What’s next: MBA will continue to advocate for consistent national standards by opposing similar policies in other states – and will work with the California MBA and other stakeholders to engage in the now-delayed rulemaking process.
For more information, please contact William Kooper (202) 557-2737 or Liz Facemire (202) 557-2870.
MBA, California MBA Launch Campaign Opposing Rent Control Ballot Initiative: Participate in Free Webinar on Oct. 15
Last Tuesday, the Mortgage Action Alliance (MAA) sent a joint message from the California MBA (and the national MBA) launching the “No for Me on Prop 33” campaign, urging members to vote against California’s Proposition 33 (Prop 33).
• California voters have rejected rent control at the ballot twice before and should do so again.
Why it matters: Prop 33 would repeal the Costa-Hawkins Rental Housing Act and would allow local governments to set residential rental rates when a unit becomes vacant – actions which will harm the multifamily real estate market and housing affordability. Repealing Costa-Hawkins would create a patchwork of state and local price control laws that would make lending more costly and negatively impact affordable credit availability throughout the state.
What’s next: The California MBA and MBA are holding a joint webinar at 4:00 PM Eastern/1:00 Pacific on Tuesday, October 15, that will provide more information about this campaign, the ballot process in California, and explain why rent control is a failed policy initiative. Register for the free webinar here.
For more information, please review this issue brief and contact William Kooper (202) 557-2737 or Jamey Lynch (202) 557-2818.
Participate in National Voter Education Week
MBA’s MAA is participating as part of National Voter Education Week (Oct. 7-11) in a Get Out The Vote (GOTV) campaign. National Voter Education Week is a non-partisan campaign to help you prepare to make your voice heard during the Tuesday, November 5, general election!
Why it matters: Throughout the week, MAA will provide industry advocates with voting information and resources needed during this election season utilizing MAA’s Election Center, including voter registration status, absentee or mail-in ballot deadlines, polling locations, and more.
What’s next: Follow MAA on LinkedIn and Facebook and don’t forget to register for the next MAA Quarterly Webinar: Post-Election Briefing on Wednesday, Dec. 4, from 3:00pm- 4:00pm ET.
For more information, please contact Margie Ehrhardt at (202) 557-2708.
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:
• Unlocking Private Credit Finance: A Conversation On Key White Papers & Research – Oct. 9
• 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.
