CREF Policy Update: FHFA Director Pulte Makes Significant Changes at FHFA and the GSEs
FHFA Director Pulte Makes Significant Changes at FHFA and the GSEs
Following his confirmation, Federal Housing Finance Agency (FHFA) Director Bill Pulte has made several moves to reshape the agency as well as the leadership at Fannie Mae and Freddie Mac (the GSEs).
• MBA is aware of personnel in multiple departments at FHFA being put on administrative leave. Effective March 17, several members of the GSEs’ Board of Directors were removed and new members were added, including Director Pulte who will serve as Chairman of both boards.
• There are ongoing changes to the GSEs’ C-suite and senior leadership teams. At Freddie Mac, Mike Hutchins will now serve as Interim CEO (replacing former CEO Diana Reid).
Why it matters: MBA expects more personnel moves at FHFA and the GSEs in the near future and will keep members informed of any relevant developments. As we monitor this period of reorganization, MBA will continue to focus on the list of key policy issues delivered to FHFA last week, including:
• Ensuring any efforts to release the GSEs from conservatorship protect against market disruption and preserve the level playing field
• Maintaining recent amendments rescinding the product and cash window caps
• Rethinking of the two-credit score and bi-merge project to ensure consumers will benefit. MBA also led a joint trades letter on this issue.
• Rescinding a recent FHFA advisory bulletin calling on the GSEs to conduct consumer compliance exams
• Ensure pipeline protection on policy and pricing changes
• Fine-tune multifamily loan programs
What’s next: MBA will remain engaged with senior leadership at both FHFA and the GSEs and will work to ensure business continuity for members.
For more information, please contact Megan Booth at (202) 557-2740 or Sasha Hewlett at (202) 557-2805.
Federal Reserve Keeps Rates Unchanged
The Federal Reserve held the federal funds rate at a target range of 4.25-4.50% on Wednesday.
Read more of MBA SVP and Chief Economist Mike Fratantoni’s commentary here.
For more information, please contact Mike Fratantoni at (202) 557-2935.
Attend MBA’s National Advocacy Conference on April 8-9; Over 500 Advocates Registered
Join us in Washington, D.C. to meet with key policymakers, network with colleagues across the industry, and hear from policy experts on the topline issues impacting the industry.
Key advocacy issues to be covered in a dedicated commercial/multifamily track include the potential for GSE release, real estate-related tax policy priorities, legislation intended to increase housing supply, insurance-related concerns, CFPB-related regulatory relief (Section 1071 and HMDA reporting requirements) and more.
• Though further guests may be confirmed in the coming days, scheduled speakers currently include HUD Secretary Scott Turner, House GOP Conference Chair Lisa McClain (R-MI), key Senate Banking Committee members Elizabeth Warren (D-MA) and Mark Warner (D-VA), key House Financial Services Committee members Mike Flood (R-NE), Ritchie Torres (D-NY), and Emmanuel Cleaver (D-MO), and National Journal’s managing editor of Hotline Kirk Bado.
An exclusive reception will be held on Tuesday, April 8, at the Renwick Gallery of the Smithsonian American Art Museum. Lend your voice to our efforts and bring your expertise and experiences to the table.
• Check out MBA’s group passes pricing.
Why it matters: Your participation at NAC ensures that members of the 119th Congress and the administration understand how proposed legislation affects your employees, your end users, and the communities you (and they) serve.
What’s next: MBA will use its NAC25 efforts as a key means to advocate on behalf of the policy priorities (both legislative and regulatory) that impact the real estate finance industry.
For more information, please contact Jamey Lynch, AMP, at (202) 557-2818.
MBA, CMBA Respond to CA Carbon Emissions Requirements Proposal
Last week, MBA and the California MBA (CMBA) responded to a request for comment from the California Air Resources Board (CARB) on carbon emissions disclosures. Pursuant to several laws passed in California, CARB is seeking information on how to implement disclosures for companies operating in the state.
Go deeper: CARB proposes requiring companies doing business in California to meet certain thresholds to report on their Scope 1, 2, and 3 emissions, climate risks, and voluntary carbon offsets. MBA and CMBA’s response urged flexibility in reporting requirements, and for limited requirements for Scope 3 emissions.
Why it matters: Scope 3 emissions (or indirect greenhouse gas emissions) are still an evolving concept, and such information is likely to add little to no value in providing decision-useful information about a company’s climate-related risk.
What’s next: MBA will continue to advocate for flexible reporting requirements that do not unduly burden lenders.
For more information, please contact Megan Booth at (202) 557-2740 or William Kooper at (202) 557-2737.
Commercial and Multifamily Mortgage Delinquency Rates Increased in Fourth-Quarter 2024
Commercial mortgage delinquencies increased in the fourth quarter of 2024, according to MBA’s latest Commercial Delinquency Report, released recently.
What they are saying: “Commercial mortgage delinquency rates increased in the fourth quarter of 2024, with the exception of life company loans, which showed a slight decrease,” said Fratantoni. “Even with certain market challenges such as low occupancy rates and the uncertain impact of return-to-office mandates in the office market, and oversupply in the multifamily property market, delinquency rates remain relatively low from a historical perspective.”
Go deeper: “MBA estimates that almost a trillion dollars’ worth of loans are maturing in 2025, and these maturities, coupled with more challenging economic conditions and rangebound interest rates, may result in some further increases in delinquencies if borrowers cannot successfully refinance these loans,” added Fratantoni.
To download the current report, click here.
For more information, please contact Mike Fratantoni at (202) 557-2935.
MBA to Host Bank Council Virtual Meeting on March 26
MBA’s Bank Council will hold its next quarterly virtual meeting on Wednesday, March 26 at 1 p.m. ET.
• MBA’s CREF Bank Council brings together MBA members to discuss the latest issues and trends affecting bank lending backed by commercial and multifamily mortgages. This meeting will include discussions of the latest market conditions, including opportunities and challenges for existing loans and new originations. MBA’s Vice President for CREF Policy Megan Booth will lead the discussion on key policy topics, and MBA’s Fratantoni will share his latest market outlook.
Why it matters: The MBA Bank Council provides members with an opportunity to hear from expert speakers, share market intelligence, and network with peers, all with a special focus on the perspective of depositories.
What’s next: If you are not yet a member of the Bank Council and would like to get involved, visit the Councils & Committees page on MBA’s website.
• MBA & Council Leadership John Harvey (Chair) and Brandon Pugh and Sandeep Patel (Vice Chairs) host this meeting quarterly.
For more information, please contact Tonya Wright at (202) 557-2846.
mPower Moments: On Being Solutions-Oriented with MBA’s Dawn Williams
mPower Founder Marcia M. Davies sits down with Dawn Williams, MBA’s Associate Vice President of Program Development, for an in-depth conversation on her career journey as well as MBA’s conference programming strategy.
Go deeper: Williams also discusses the importance of identifying relevant industry topics to ensure that conference attendees are up to date on key issues that are impacting their organizations and the real estate finance industry. Additionally, Willams also shares her strategy on how she’s able to remain calm and collected when working through challenges.
To watch more mPower Moments, click here.
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 – all complimentary to MBA members:
• Understanding Parametric Insurance: A Lender’s Guide to Maximizing Protection and Efficiency – April 10
• Uncovering Fraud in Commercial/Multifamily Lender-Placed Insurance – April 15
• Builder’s Risk Insurance: Analysis & Perspectives – April 17
• Basics of Commercial Loan Closing and Loan Documentation – May 1
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.
