House Passes Spending Deal; Senate Expected to Follow
After reaching a bipartisan agreement late Tuesday, the House yesterday approved a spending bill that would keep the federal government funded through September 30.
The House passed the $1.1 trillion spending bill by a 309-118 vote, with 15 Democrats and 103 Republicans voting against. The bill now heads to the Senate, which is expected to approve it by Friday; President Trump is expected to sign the bill, despite its exclusion of several key elements he favored, including funding for a wall along the U.S.-Mexico border.
The agreement avoids a potentially disruptive government shutdown, which could have impacted approvals for FHA loans and other loan products.
The Mortgage Bankers Association, in reviewing the bill, issued a special Advocacy Update summarizing the bill text (https://rules.house.gov/sites/republicans.rules.house.gov/files/115/OMNI/DIVISION K – THUD SOM OCR FY17.pdf) and the Explanatory Statements (https://rules.house.gov/sites/republicans.rules.house.gov/files/115/OMNI/CPRT-115-HPRT-RU00-SAHR244-AMNT.pdf) that accompanied the bill.
The MBA analysis cites the following provisions of importance to the real estate finance industry:
–The bill again prohibits FHA, Ginnie Mae, and HUD from insuring a mortgage on a property that “refinances or otherwise replaces a mortgage that has been subject to eminent domain condemnation or seizure.”
–$4 million in information technology funds are specifically allocated for FHA modernization.
–$55 million for housing counseling programs.
–An increase in Section 8 Project Based Rental Assistance to $10.581 billion from $10.4 billion, along with increased funding for tenant-based Section 8 vouchers.
–$30 billion in commitment authority for the General Insurance/Special Risk Insurance fund (multifamily and healthcare).
–$500 billion in Ginnie Mae commitment authority.
–$23 million for Ginnie Mae staffing, training, and technology (the same amount as the current fiscal year), with the opportunity to receive up to an additional $3 million if guaranteed loan commitments exceed $155 billion.
–$130 million for FHA (the same amount as the current fiscal year), with the opportunity to receive up to an additional $30 million if guaranteed loan commitments exceed $200 billion.
–The omnibus also includes a lender access fee for Rural Housing Service loans, capped at $50 per loan.
“MBA has already begun monitoring the budget and appropriations process for FY 2018 and will continue to advocate for provisions that are favorable to the real estate finance industry,” said MBA Senior Vice President of Political and Legislative Affairs Bill Killmer.
