CREF Policy Update: MBA Urges HUD to Curb Excess Regulation
MBA Urges HUD to Curb Excess Regulation
Last Tuesday, MBA sent the Department of Housing and Urban Development (HUD) a letter urging the agency to consider changes to environmental regulations in its Federal Housing Administration (FHA) Multifamily Accelerated Processing (MAP) program to lower housing costs and boost housing supply.
• Given President Donald Trump’s withdrawal of National Environmental Policy Act (NEPA) regulations, MBA believes that a number of environmental requirements that have been added to the MAP Guide since 2011 should be rescinded and/or curtailed. Many are not in any statute or regulation, add significant expense and time to multifamily projects, and limit new development. MBA strongly encourages HUD to review the necessity of these requirements, given ongoing supply and affordability constraints.
Why it matters: Activity in FHA’s MAP program has declined in recent years, largely due to unnecessary and onerous requirements. MBA believes HUD can cut through much of the accumulated “red tape” and focus on the program’s core function of providing access to FHA mortgage insurance for the development of quality multifamily housing, with minimal risk to the American taxpayer.
What’s next: MBA will continue to work with HUD to further President Trump’s goal of lowering the cost of housing and expanding supply.
For more information, please contact Megan Booth at (202) 557-2740.
CFPB Lays Off 1,400 Employees, Court Issues Temporary Injunction
Earlier this month, roughly 1,400 employees at the Consumer Financial Protection Bureau (CFPB or the Bureau) received termination notices pursuant to a Reduction-in-Force (RIF) plan.
• The following day (Friday, April 18) D.C. District Court Judge Amy Jackson Berman issued a temporary injunction on the firings, saying she was “deeply concerned, given the scope and speed of the agency action.” The D.C. Circuit Court previously ordered that the Administration could not conduct mass layoffs without conducting individualized assessments of those being fired.
Judge Berman noted: “Within three business days… employees were informed that the agency was planning to do exactly what it was told it couldn’t do on February 14th, exactly what it was told it couldn’t do again [by the circuit court]. Until I have made a determination that it is in compliance… it’s not going to happen in the meantime. We’re not going to disperse 1,408 people into the universe and have them be unable to communicate with the agency anymore until we have determined whether that is lawful or not.”
Go deeper: The scope of layoffs was larger than expected based on recent discussions held by MBA staff with Administration officials. Those conversations suggested that while the Bureau would be downsized, it would maintain sufficient resource levels to conduct core statutory functions, including rule-writing personnel/capabilities needed to revise and reform certain Director Chopra- and Cordray-era rules, as well as sustaining baseline levels of supervision, enforcement, and market monitoring functions required by statute.
Regardless of where CFPB staff reduction levels land, MBA’s discussions with the Administration will emphasize the importance of maintaining sufficient resources to:
• review and revise many mortgage-related rules, such as pending Reg X servicing rules, loan officer compensation rules, and MBA’s RESPA reform recommendations; and
• conducting baseline levels of statutorily required supervision and enforcement across its entire consumer finance portfolio.
What’s next: MBA will keep members updated as the case continues.
For more information, please contact Megan Booth at (202) 557-2740, Justin Wiseman at (202) 557- 2854, or Alisha Sears at (202) 557-2390.
Total Commercial Real Estate Borrowing and Lending Increased 16% in 2024
Total commercial real estate (CRE) mortgage borrowing and lending is estimated to have totaled $498 billion in 2024, a 16% increase from the $429 billion in 2023, and a 39% decrease from $816 billion in 2022. This is according to MBA’s 2024 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation, released yesterday.
Go deeper: MBA’s survey tracked $411 billion of loans closed by dedicated commercial mortgage bankers in 2024 – a 34% increase from the $306 billion reported in 2023. Activity from smaller and mid-sized depositories is estimated from other data sources to arrive at the $498 billion estimate for the total market.
• Among different property types, multifamily properties saw the highest volume last year, with an estimated $326 billion of total lending and $219 billion directly tracked by dedicated mortgage bankers. First liens accounted for 92% of the mortgage bankers’ dollar volume closed.
What they are saying: “Commercial real estate lending rebounded to $498 billion in 2024, up 16% from the prior year and driven largely by multifamily activity and continued strength from dedicated mortgage banking firms, which closed $411 billion in loans,” said Reggie Booker, MBA’s Associate Vice President of Commercial Real Estate Research. “While still below 2021’s record originations activity, the market showed renewed momentum. With an estimated $957 billion in CRE mortgage maturities coming due this year, demand for refinancing and new capital will be key drivers of market activity.”
Among different property types, multifamily properties saw the highest volume last year, with an estimated $326 billion of total lending and $219 billion directly tracked by dedicated mortgage bankers. First liens accounted for 92% of the mortgage bankers’ dollar volume closed.
For more information, please contact Reggie Booker at (202) 557-2863.
Get Involved in MAA Action Week: May 12-16
MBA’s annual Mortgage Action Alliance (MAA) Action Week is fast approaching, taking place from May 12-16! Sign up today and promote the importance of advocacy engagement within your company. This industrywide campaign allows ALL of us to play a part in the legislative and regulatory process – on issues that directly impact all real estate finance professionals. Active MAA engagement helps improve how YOU and your company drive positive change by adding your voice to our collective public policy efforts.
Go deeper: During MAA Action Week, MBA provides you with all necessary resources you need to make your campaign a success, including a communications plan, sample emails, social posts, and graphics in advance – making it an easy “copy and paste” exercise for you and your designated colleagues.
Why it matters: MAA unites our entire industry. Remember: you are the experts – and your voice is needed to play a part conducting this vital work – especially with so many new elected officials in the current Congress.
What’s next: Join MBA’s Legislative and Political Affairs team for our next MAA Quarterly Webinar: Beyond the First 100 Days on Thursday, May 1, from 3:00-4:00 PM ET. This free virtual event will provide a recap of MBA’s National Advocacy Conference, as well as an update on Congress and the Trump administration, including key regulators, helping to define what it all means for our members. Learn how MBA works with decision makers to support our public policy agenda.
For more information, please contact Jamey Lynch, AMP at (202) 557-2818 or Margie Ehrhardt at (202) 557-2708.
REGISTER: Attend MBA’s Commercial/Multifamily Finance Servicing & Technology Conference – May 18-21
MBA’s Commercial/Multifamily Finance Servicing and Technology Conference (CMST), taking place May 18-21, in Hollywood, Fla., is the most comprehensive and interactive event for servicers and technology professionals to gather and discuss relevant industry challenges and opportunities.
View the schedule here.
Why it matters: CMST is the opportunity to connect with your peers, meet with existing and potential business partners, hear from experts, and learn meaningful technology solutions that drive real impact. Attendees are also eligible to earn CPE credits and CCMS education points.
What’s next: There is still opportunity to register for the conference at www.mba.org/conferences.
For more information, please contact Megan Booth at (202) 557-2740.
MBA CREF Webinar Series, Part 1: Securing Your Deal: Risk Reduction Tactics: Pre-Closing
On Tuesday, May 6, at 1 PM EST, MBA’s “Securing Your Deal Webinar Series” will kick off, with the first webinar focusing specifically on preclosing.
• Learn best practices for due diligence, managing third-party reports, and identifying borrower and collateral risks early to strengthen deal structure and minimize surprises at closing. Click here to register.
• Featured speakers include Derek Vander Veen, CRI, CCMS, SVP Business Development at Grandbridge Real Estate Capital; Richard Slaton, PhD, CCIM, Executive Director at JP Morgan Chase; Mark Chapin, IFA, Chief Business Development Officer at Applied Valuation Services; and Ana Duron-Fleck, Senior Mortgage Underwriter at Armada Analytics.
Why it matters: In this comprehensive webinar series, MBA will explore essential strategies and best practices for minimizing risk during the full life cycle of commercial real estate deals.
• As real estate transactions involve complex negotiations and multiple stakeholders, it’s crucial to identify and mitigate potential risks before the deal is finalized.
• Throughout the series, expert speakers will cover key topics such as conducting thorough due diligence, understanding financial and legal risks, addressing potential environmental concerns, and ensuring regulatory compliance.
What’s next: The next two sessions will focus on the intersection of servicing and risk reduction in commercial real estate finance.
• The first session will cover servicing operations and risk mitigation, highlighting best practices in loan administration, compliance, and strategies to proactively manage portfolio risk.
• The second session will explore special servicing and asset preservation, with insights on handling distressed loans, executing effective workouts, and maintaining asset performance during market disruptions.
For more information, please contact Tonya Wright at (202) 557-2846.
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:
• Basics of Commercial Loan Closing and Loan Documentation – May 1
• CMF Risk Management Series: Pre-Closing Risk Reduction Tactics – May 6
• Mastering Commercial Insurance Modeling: Key Insights and Applications – May 27
• Introduction to Commercial Mortgage-Backed Securities – May 28
• MBA Roundtable with CMF Council Leadership – June 12
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.
