CREF Policy Update: Federal Reserve Cuts Rates By a Half Point; First Rate Cut Since 2020
Federal Reserve Cuts Rates By a Half Point; First Rate Cut Since 2020
Softer inflation data and higher unemployment gave the Federal Reserve enough evidence to cut short-term rates by 50 basis points last Wednesday to a target range of 4.75-5% from 5.25-5.50%.
• The FOMC projections highlighted that inflation is returning to target more quickly than the Committee had expected in June and that the unemployment rate has moved higher and is likely to stay higher than expected.
Read MBA Chief Economist and Senior Vice President Mike Fratantoni’s full commentary here.
For more information, please contact Mike Fratantoni at (202) 557-2935.
FHFA Releases Tool for Tracking Multifamily Data
Last Tuesday, the Federal Housing Finance Agency (FHFA) released an interactive tool for tracking data on multifamily mortgages backed by Fannie Mae and Freddie Mac (the GSEs). The tool’s data is derived from the Public Use Database of GSE mortgage acquisitions and can be accessed here.
Go deeper: Key GSE multifamily program characteristics can be accessed through the tool, such as median loan amount, number of properties, and unit affordability.
What’s next: MBA will continue to monitor FHFA’s announcements and communicate all relevant information to our members.
For more information, please contact Stephanie Milner at (202) 557-2747.
Commercial and Multifamily Mortgage Debt Outstanding Increased Modestly in the Second Quarter 2024
The level of commercial/multifamily mortgage debt outstanding increased by $31.4 billion (0.7%) in the second quarter of 2024, according to MBA’s latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report, released last week.
Go deeper: Total commercial/multifamily mortgage debt outstanding rose to $4.69 trillion at the end of the second quarter. Multifamily mortgage debt alone increased $19.4 billion (0.9%) to $2.09 trillion from the first quarter of 2024.
For more information, please contact Jamie Woodwell at (202) 557-2936.
Key House Committee Discusses, But Fails to Advance Sweeping Data Privacy Measure
Last Wednesday, the full House Energy and Commerce Committee held a legislative “mark-up” on several outstanding bills within its jurisdiction, including a proffered amendment on data privacy —the American Privacy Rights Act of 2024 (APRA).
• The APRA proposal – which is opposed by the House GOP leadership – is principally championed by full Energy & Commerce (E&C) Chair Cathy McMorris-Rodgers (R-WA) and the panel’s Ranking Member Frank Pallone (D-NJ).
• MBA again joined with other major financial services trade associations to criticize the proposal’s failure to adequately recognize the strong privacy and data security standards already in place for the financial sector under the Gramm-Leach Bliley Act (GLBA). During the markup, E&C Ranking Member Pallone offered a modified version of the APRA as an amendment, but then withdrew it given the lack of sufficient support for its approval.
Why it matters: MBA has previously raised additional concerns with APRA, as drafted, regarding the bill’s “private right of action” provision, its insufficient pre-emption of state laws, and its consumer “opt-out” of an evaluation by algorithm for “consequential decisions,” such as housing credit opportunities.
What’s next: MBA will continue to work with our coalition partners to advocate for federal data privacy changes that appropriately protect and acknowledge the primacy of the existing GLBA framework.
For more information, please contact Rachel Kelley at (202) 557 2816 or Madisyn Rhone at (202) 557-2741.
Senate Banking Subcommittee Holds Hearing on Tax Reform
Last Wednesday, the Economic Policy Subcommittee held a hearing titled, “The Macroeconomic Impacts of Potential Tax Reform in 2025.” Witnesses included Ms. Kitty Richards, Senior Fellow, Groundwork Collaborative, and Ms. Ai-jen Poo, President and Executive Director, National Domestic Workers Alliance, Caring Across Generations.
• Senator Elizabeth Warren (D-MA) chaired the hearing and emphasized the critical nature of the 2025 tax policy decisions. She argued against extending the 2017 tax cuts, stating the Tax Cuts and Jobs Act (TCJA) primarily benefited wealthy individuals and large corporations. Republican Senators did not have remarks at the hearing.
• A transcript of the hearing may be found here.
Why it matters: While the Senate Banking Committee does not have jurisdiction over tax matters, many members of the Banking Committee (including Senator Warren) also serve on the Senate Finance Committee, which will be at the epicenter of tax discussions next year. The points of view expressed in this hearing give a window into the thinking of some Senators for the larger discussion about tax policy that will occur in the 119th Congress (2025-26).
Go deeper: Senator Chris Van Hollen (D-MD) said that the 2017 TCJA tax cuts did not deliver the economic benefits (such as increased business investment and wage growth) promised upon its enactment. He criticized the tax cuts for disproportionately benefiting wealthy executives and shareholders while failing to provide significant relief to average workers.
What’s next: MBA will continue to actively engage on all tax matters in the Senate and the House and continue to strongly advocate for the real estate finance industry’s top tax priorities.
For more information, please contact George Rogers at (202) 557-2797 or Ethan Saxon at (202) 557-2913.
Registration for MBA’s NAC25 Now Open
Attend MBA’s National Advocacy Conference (NAC) on April 8 and 9, 2025, at the Capital Hilton in Washington, D.C. Once again, MBA will be hosting a tailored CREF track to allow commercial/multifamily members a chance to demonstrate our sector’s unified voice to policymakers, regulators, and key partners.
Why it matters: With a new Congress comes newly elected officials and opportunities to cultivate relationships for the industry. Your participation at NAC ensures that a newly formed 119th Congress understands how their actions will affect your employees and end users – and the communities you (and they) serve.
• Issues like tax policy, property insurance, the GSEs’ multifamily platforms, and the efficiency of the FHA multifamily and health care programs will again be front and center. Help make our advocacy in 2025 as successful as possible given the consequential issues in play!
What’s next: Register today at mba.org/NAC25 and save during the early-bird registration.
For more information, please contact Erin Reilly at (202) 557-2751.
mPower Moments: On Forging Your Own Path with MBA’s Karen Franklin
mPower Founder Marcia M. Davies sits down with Karen Franklin, MBA’s Executive Assistant to the Commercial/Multifamily and Finance teams, for an in-depth conversation on balancing her career at MBA as well as being a professional singer.
Go deeper: Franklin discusses her passion for both careers and acknowledges the obstacles that often come with having two. She also provides helpful tips on how to relax before a big meeting or performance, as well as always believing in yourself to reach your full potential.
For more information, please contact Marcia Davies at (202) 557-2707.
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 – which are complimentary to MBA members:
• Navigating Multifamily Income and Expenses from Fundamentals to Performance Metrics – Oct. 2
• Overview of Commercial Insurance Compliance – Oct. 3
• Unlocking Private Credit Finance: A Conversation on Key White Papers & Research – Oct. 9
• CREF Career Conversations: Insights from Industry Leaders – Nov. 6
• 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.
