CREF Policy Update: Judge Rules CFPB’s Funding Cannot Lapse; Hearing Set for Feb. 24
Judge Rules CFPB’s Funding Cannot Lapse; Hearing Set for Feb. 24
On Tuesday, D.C. District Court Judge Amy Jackson Berman ruled that the Trump administration must continue to seek funding for the Consumer Financial Protection Bureau (CFPB or the Bureau) through Feb. 24, which is when the federal appeals court will hold an en banc hearing. The ruling rejects the Department of Justice’s Office of Legal Counsel (OLC) argument that the CFPB may not legally request funds from the Federal Reserve when the central bank operates at a loss.
• The OLC reached this conclusion based on the fact that the Federal Reserve System currently lacks any “combined earnings” from which the CFPB can draw funding, as required by the Dodd-Frank Act. OLC interprets “combined earnings” to mean profits (revenues minus interest expense), not gross revenues. Given that the Federal Reserve has reported net losses, the OLC concluded that there are no funds from which to draw.
•However, Judge Berman’s ruling rejected the OLC analysis and compels the CFPB to continue requesting funding from the Federal Reserve’s total net income, even in instances where the central bank’s income is in the red.
• Judge Berman noted: “The statutory text of the Dodd Frank Act … prescribes a process through which the CFPB is to request the funding it needs to carry out the mission it was assigned by Congress, and the Federal Reserve must provide that funding from its ‘combined earnings’…This process has unfolded seamlessly since the Bureau was established in 2011, even in the years since 2022 when the Federal Reserve’s interest expenses have exceeded its earnings.”
Go deeper: Additionally, a coalition of 21 states along with the District of Columbia sued the Trump administration last week to prevent it from defunding the CFPB.
• MBA has consistently noted the importance of maintaining sufficient CFPB funding to ensure the Agency has the resources to conduct its statutory duties, including the rulemaking staff needed to finalize reforms to a number of outdated and overreaching regulations, including the 1071 small business reporting rule.
What’s next: MBA will keep members informed of any updates and will continue to be engaged in any relevant rulemakings from the CFPB.
For more information, please contact Justin Wiseman at (202) 557- 2854, Alisha Sears at (202) 557-2390 and Megan Booth at (202) 557-2740.
Outgoing NYC Mayor Adams Vetoes MBA-Opposed Community Opportunity to Purchase Act
On New Year’s Eve, in one of his final acts as New York City Mayor, Eric Adams vetoed several pieces of legislation, including a bill opposed by MBA and the New York MBA.
The vetoed bill, the Community Opportunity to Purchase Act (Intro 902-A), or COPA, would have given qualified nonprofits and tenant groups the first opportunity to purchase multifamily rental buildings when they come up for sale. Both associations previously expressed opposition to the bill in a letter sent earlier in December to the NYC Council.
Why it matters: MBA and the NYMBA warned the former Mayor and the City Council that the COPA measure could have stifled investment and new development by introducing lengthy sale delays —requiring sellers to provide 180 days’ notice and limiting competing offers — while dampening property values and discouraging for-profit buyers with experience in maintaining and improving affordable housing.
• COPA would have exacerbated the acute affordable housing problem by deterring much-needed private capital and slowing redevelopment at a time when NYC faces intense housing pressures.
What’s next: MBA will continue to work with the NYMBA and other industry partners to oppose this legislation should new Mayor Zohran Mamdani and the City Council opt to resurrect it.
For more information, please contact William Kooper (202) 557-2737 or Megan Booth (202) 557-2740.
Upcoming MBA CREF Council and Committee Meetings
MBA’s CREF Councils and Committees are a key way to connect to everything MBA has to offer around policy, advocacy, market intelligence and research, education, and networking. Councils and Committees are built around specific capital sources and serve as an opportunity for you to join other commercial real estate finance professionals to hear from experts, discuss opportunities and challenges, and connect with peers.
Upcoming virtual meetings include:
• FHA Council: Jan. 13
• Servicer Council: Jan. 15
• Private Credit Council: Jan. 21
• Insurance Company Council: Jan. 22
• All Council In-person Meet-up: Feb. 8
• Structured Finance Council (in-person): Feb. 10
For more information, click on the links above and/or contact Kelli Burke at (202) 557- 2742.
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, opportunities, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars – all complimentary to MBA members:
• External CMF Benchmarking Requirements – Jan. 14
• Distressed Asset Property Due Diligence and Tool Kit – Jan. 21
• Fundamentals of Commercial Insurance Issues and Problems – Jan. 27
• Internal CMF Benchmarking Requirements – Feb. 18
• Builder’s Risk Insurance Essentials for Commercial & Multifamily Properties – March 18
• Introduction to Commercial Mortgage-Backed Securities – April 8
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.
