CREF Policy Update: Prudential Regulators Testify Before Key House Panel
Prudential Regulators Testify Before Key House Panel
Last Thursday, the House Committee on Financial Services (HFSC) held a regularly-scheduled oversight hearing with the heads of the nation’s top prudential financial regulators, namely Federal Reserve Vice Chair for Supervision Michelle Bowman, Federal Deposit Insurance Corporation (FDIC) Chairman Travis Hill, National Credit Union Administration (NCUA), and Comptroller of the Currency (OCC) Jonathan Gould.
Go deeper: The hearing was intended to cover a broad range of topics – including bank capital and regulatory supervision/modernization – on specific issues such as the revised Basel III “Endgame” (B3E) proposal, the Community Reinvestment Act (CRA), regulatory tailoring for community and mid-sized banks, mortgage credit access, digital assets, “debanking,” private credit systemic risk, AI and fraud risks, and the Bank Secrecy Act (BSA)/anti-money laundering (AML) compliance.
- Mortgage-related lending and servicing concerns – both commercial/multifamily and single-family in nature – were central elements of several exchanges between HFSC panel members and the regulators regarding B3E revisions. A more complete summary of the full hearing may be found here.
Why it matters: Investments in low-income housing tax credits (LIHTC) have traditionally been tremendous assets for banks seeking to support housing affordability in communities across America, but constraints among investors have limited the program’s impact in recent years. MBA has worked with key members of the HFSC panel and the regulatory agencies in an effort to reduce current, punitive capital requirements around these investments as part of the B3E process.
What’s next: MBA will continue to refine its regulatory comments related to the Basel III re-proposal (comments are due June 18th), while also continuing to engage with regulators and congressional leaders to ensure the final rule supports robust bank and appropriate levels of participation in commercial mortgage activities.
For more information, please contact Rachel Kelley at (202) 557-2816, Madisyn Rhone at (202) 557-2741 or John Lammle at (202) 557-2789.
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. Visit www.mba.org/yourCREF to find out more. 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 Committee: June 11
• Life Company Council: June 16
• Private Credit Finance: June 17
• Bank Council: June 18
• Structured Finance Council: June 24
• Agency Council: July 9
• Servicer Council: July 16
• Commercial Council: July 21
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:
• M&A State of Play in Mortgage Lending – June 11
• Understanding Tax-Exempt Private Activity Bonds in Affordable Housing Finance – June 12
• Fundamentals of Commercial Insurance Issues and Problems – July 15
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.
