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MBA Advocacy Update Sept. 22, 2020

September 21, 2020

Bill Killmer bkillmer@mba.org; Pete Mills pmills@mba.org

On Wednesday, Federal Housing Finance Agency Director Mark Calabria testified before the House Financial Services Committee, where he discussed the agency’s response to the COVID-19 pandemic and the GSEs’ Adverse Market Refinance Fee.

MBA and several trade organizations sent a letter to Congress asking them to consider a longer-term solution to the National Flood Insurance Program, which is set to expire at the end of the month. Also last week, the Supreme Court set oral arguments for December 9 in Collins v. Mnuchin, the case that will determine the constitutionality of the FHFA’s independent director structure.

1. House Financial Services Committee Conducts Oversight of Federal Housing Finance Administration

On Wednesday, the House Financial Services Committee held a hearing with Federal Housing Finance Agency Director Mark Calabria on the agency’s response to the coronavirus pandemic. Calabria received bipartisan pushback regarding the imposition of a 50 basis-point fee on GSE refinance loans. As a result of MBA advocacy, FHFA pushed the effective implementation date of the fee to December 1, and exempted low-cost loans under $125,000. Members on the panel also probed Calabria on the regulator’s treatment of loans that have received pandemic-related forbearances, and the regulator’s recently proposed capital rule. 

  • Why it matters: Although FHFA oversight hearings occur periodically, the tenor of this recent hearing was influenced by the industry’s effective advocacy on various policy changes and proposals released by FHFA. A summary of the hearing can be found here.
     
  • What’s next: The House Financial Services Committee plans to conduct a subsequent oversight hearing with the Treasury Department and the Federal Reserve next week.

For more information, please contact Ernie Jolly at (202) 557-2741 or Bill Killmer at (202)-557-2736.

2. MBA Joins Industry Coalition Letter Urging Congress To Extend NFIP

On Tuesday, MBA and several industry trade associations sent a letter to congressional leaders asking lawmakers to ensure that millions of Americans will continue to have access to flood insurance coverage through the National Flood Insurance Program. The letter can be found here.

  • Why it matters: The NFIP’s authorization is currently set to expire on September 30, and the letter recommends that the program undergo several significant reforms designed to create long-term stability for policyholders.
  • What’s next: Congress remains divided over comprehensive reforms to the NFIP. Any extension for the program will likely get folded into a Continuing Resolution that will temporarily fund the federal government beyond September 30. This will give Congress more time to build consensus around substantive program reforms.

For more information, please contact Tallman Johnson at (202) 557-2866 or Ethan Saxon at (202) 557-2913.

3. Supreme Court Will Consider FHFA’s Constitutionality

This week, the Supreme Court announced that it has set oral arguments for December 9 in Collins v. Mnuchin, the case that will determine the constitutionality of the Federal Housing Finance Agency’s independent director structure.

  • What’s next: MBA will monitor ongoing developments and will provide an updated analysis once the court makes its ruling.

For more information, please contact Justin Wiseman at (202) 557-2854.

4. Senate E-Sign Bill Clears Key Committee Hurdle

On Wednesday, the Senate Commerce Committee, which has jurisdiction over technology and consumer protection, passed S. 4159, the Electronic Signatures in Global and National Commerce Act. Introduced by Senators John Thune (R-SD), Jerry Moran (R-KS), and Todd Young (R-IN), the bill would streamline how consumers consent to receiving electronic documents such as bank statements, account information, and contracts.

  • Why it matters: The bill would amend the prior Electronic Signatures in Global and National Commerce Act (E-SIGN), which became law in 2000 and provides a framework for interstate and foreign commercial transactions to be completed using electronic signatures and documents.
  • What’s next: S. 4159 was approved in Committee by a 14-12 party-line vote. The bill may now proceed to the Senate floor, though the committee’s partisan vote will likely slow the potential for its consideration.

For more information, please contact Tallman Johnson at (202) 557-2866 or Ethan Saxon at (202) 557-2913.

5. Senators Introduce Consumer Data Privacy Legislation

On Thursday,  Senate Commerce Committee Chairman Roger Wicker (R-MS), along with several Republicans, introduced the Setting an American Framework to Ensure Data Access, Transparency and Accountability Act. The legislation is designed to provide consumers with more choice and control over their data and directs businesses to be more transparent and accountable for their data practices. A copy of the bill text can be found here.

  • Why it matters: In November 2019, the Commerce Committee released a staff draft of the SAFE DATA Act. Since its initial release, the proposal has been updated to clarify definitions, expand the scope of data that is covered under the bill, and protect consumers from being manipulated by algorithms used by online platforms.
  • What’s next: A comprehensive data privacy bill is unlikely to move at this late stage in the current Congress. However, MBA’s advocacy (with both the Senate Commerce and Banking Committees) continues to support efforts to ensure that no consumer is unwittingly exposed to harm by unintentionally providing his or her personal data to unscrupulous actors via the mortgage origination process.

For more information, please contact Tallman Johnson at (202) 557-2866 or Ethan Saxon at (202) 557-2913.

6. MBA Leads Joint Trades Effort on FHA Servicing Policies

Last Friday, MBA, along with the American Bankers Association and Housing Policy Council, submitted joint comments to HUD regarding revisions to the SF Handbook Servicing and Loss Mitigation Section. The letter applauds HUD for taking steps to better align its loss mitigation practices with GSEs, and provides detailed comments on the Handbook. In addition, the groups urged HUD to implement critical servicing policy reforms needed in the FHA program, including moving to a single foreclosure timeline, eliminating the antiquated face-to-face requirements, and reforming the conveyance process. The groups also suggested further enhancement of FHA’s Loss Mitigation Waterfall and Claims Without Conveyance of Title (CWCOT) program.

  • Why it matters: The FHA Single Family Housing Policy Handbook provides loss-mitigation guidance to servicers handling FHA-insured mortgages. In addition, the recommended servicing reforms remain critically important to HUD’s efforts to restore certainty and clarity to the FHA single family program, and to expand lender participation and consumer access.  
  • What’s next: MBA will continue to advocate for FHA to align its servicing practices with the GSEs. For a description of MBA’s servicing priorities, read the MBA Servicing Alignment White Paper.

For more information, please contact Sara Singhas at (202) 557-2826 or Darnell Peterson at (202) 557-2922.

7. New MBA RIHA Study Highlights Early COVID-19 Impact on Jobs and Individuals’ Ability to Make Housing and Student Debt Payments

On Thursday, MBA’s Research Institute for Housing America released “Housing-Related Financial Distress During the Pandemic.” RIHA’s report contains new, unreported data from an innovative household survey from the Understanding America Study, an internet panel survey of more than 8,000 households specially tailored to study the impact of the pandemic. The study focuses on rent, mortgage and student loan payment patterns from the second quarter.

  • What it says: The sudden onset of the pandemic led to abrupt rates of job loss or reduction of hours worked, along with jumps in unemployment insurance benefits received. However, federal government stimulus programs and employees being called back to work both appear to have helped most individuals make their housing payments. The report found that 11% (5.88 million) of renters reported a missed, delayed, or reduced payment, while 8% (5.14 million) of homeowners missed or deferred at least one mortgage payment, and 30 million individuals missed at least one student loan payment during the second quarter.
  • What’s next: One of the authors of the report, Gary V. Engelhardt, Professor of Economics in the Maxwell School of Citizenship and Public Affairs at Syracuse University, cautioned, “The stubbornly high rates of new COVID-19 cases and the labor market’s sluggish recovery both present significant challenges for household finances as the country enters the fall. Particularly for renters, the combination of those who missed a payment – or were offered and did not take it – is substantive enough to suggest real risk to their ability to make upcoming payments.”

For more information, please contact Eddie Seiler at (202) 557-2739.

8. Hawaii Remote Online Notarization Legislation Enacted into Law

On Tuesday, legislation (SB2275) enabling remote online notarization in Hawaii became law after a deadline lapsed for Governor David Ige to sign or veto the bill. SB2275 was first approved by the Senate in March and later amended and passed by the House in July. The new law conforms to the approach taken in model legislation developed by MBA and the American Land Title Association, which is available on the MBA RON Resource Center. MBA worked closely with the Hawaii MBA to get the legislation enacted within the state.  

  • Why it matters: Hawaii becomes the 27th state to approve RON, and by doing so, provides residents with an important method to complete real estate financial transactions in the new environmental paradigm created by the COVID-19 pandemic.
  • What’s next: The law takes effect on January 1, 2021.

For more information, please contact  Kobie Pruitt at (202) 557-2870.

9. CSBS Releases Recording of September Ombudsman Meeting
On Sept. 17, the Conference of State Bank Supervisors released the recording of their Nationwide Multistate Licensing System Ombudsman meeting from September 9. Ombudsman Jim Payne, Director of Examinations and Assistant Deputy Commissioner for Consumer and Mortgage Lending in the office of the Kansas Banking Commissioner, held a virtual/online version of the NMLS Ombudsman’s meeting to discuss licensing reforms in the age of COVID-19. 

  • Why it matters: The focus was exclusively on the need to maintain and extend current MLO permissions to work from home (or another non-licensed location) amidst an uncertain future. The meeting reflected recent discussions between MBA and the CSBS, which MBA shared in a letter to CSBS. Following the meeting, the CSBS publicly released to the industry an August 25 letter CSBS sent to their member state regulators urging them to extend any current guidance – or no action positions – allowing licensed MLOs to work from home rather than from a licensed location.
  • What’s next:  MBA will continue to engage with state regulators through the NMLS, CSBS and AARMR and urge them to work together to quickly develop consistent guidance, while also using the remote work discussion to facilitate a larger review of industry licensing.

For more information, please contact Kobie Pruitt at (202) 557-2870.

10. [VIDEO]: mPower Moments: On the Power of Persuasion and Leadership with California MBA’s Susan Milazzo

In this latest episode of mPower Moments, mPower Founder Marcia M. Davies sits down virtually with California MBA CEO Susan Milazzo to discuss tips on how to be more persuasive, adapting to new leadership, managing a team during a pandemic, and why it’s always important to “slow down” and enjoy what is in front of you.

  • Why it matters: In the insightful interview, Milazzo shares tips on how to be impactful even in a virtual environment.
  • What’s next: To watch more mPower Moments, click here.

For more information, please contact Marcia Davies at (202) 557-2707.

11. Upcoming and Recent MBA Education Webinars on Critical Industry Issues

MBA Education continues to deliver timely programming that covers the spectrum of challenges, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars – which are complimentary to MBA members:

MBA members can access the list of recent webinar recordings by clicking here. For more information, please contact David Upbin at (202) 557-2890.

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