MBA Advocacy Update Feb. 2 2021

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

On Jan. 28, the Senate Banking Committee conducted a hearing on the nomination of Rep. Marcia Fudge (D-OH) to serve as the next HUD Secretary. Also last week, Senz. Ben Cardin (D-MD) and Rob Portman (R-OH) introduced S. 98, the Neighborhood Homes Investment Act, a bill that would create a new federal tax credit to fuel development in underserved rural and urban communities across the country.

1. Senate Banking Committee Holds Hearing on Fudge Nomination for HUD Secretary

On Thursday, the Senate Banking Committee conducted a hearing on the nomination of Rep. Marcia Fudge (D-OH) to serve as the Secretary of Housing and Urban Development (HUD). The nominee received strong support from both Ohio senators.

Senators on both sides of the aisle spoke of the need to expand affordable housing nationwide, particularly in areas hit hard by unemployment, and in rural and minority communities. In her opening statement, Congresswoman Fudge pledged to increase the supply of affordable homes. The hearing also covered the adequacy of housing policies to ensure homeowners are able to access forbearance and avoid foreclosures and evictions. Sen. Patrick Toomey (R-PA) raised the Fair Housing Act and argued, “now is not the time to impose new, unfunded mandates on community housing.” He also asked that the nominee work with Congress before making any changes to the FHA’s Mutual Mortgage Insurance Fund (MMIF). Asked by Sen. Mike Rounds (R-SD) about plans to release the GSEs from conservatorship, Fudge affirmed that their future is Congress’ decision to make.

• Why it matters: The hearing is the first step in the confirmation process for Fudge to serve as HUD Secretary. The discussion highlighted a host of pressing housing issues before the committee, including affordable housing reforms, economic inclusion and changes to federal regulations established by the previous administration.
• What’s next: Given the narrow majority in the House, and the busy Senate floor schedule in the weeks ahead, a swift vote on Fudge’s nomination is not expected. Prior to her confirmation vote, she will be asked to respond to questions for the record and will continue to meet with senators who do not serve on the Senate Banking Committee.

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

2. Senators Re-Introduce Bipartisan Bill to Expand Homeownership Opportunities And Revitalize Communities

On Thursday, Sens. Ben Cardin (D-MD) and Rob Portman (R-OH) introduced S. 98, the Neighborhood Homes Investment Act (NHIA), a bill that would create a new federal tax credit to fuel development. A key priority in MBA’s advocacy efforts, this bipartisan legislation would encourage rehabilitation of single-family homes and attract $100 billion in development activity to underserved rural and urban communities across the country. Click here to read Cardin and Portman’s press release.

Why it matters: The tax credit supports development of homes in rural communities struggling with the costs of new construction, as well as the rehabilitation of homes in blighted urban communities, where vacant homes depress property values and thwart broader revitalization efforts.

What’s next: Senate cosponsors are seeking to push inclusion of this bill in its broader infrastructure and transportation legislative package, while the House is working toward introduction. To provide further support of this bill, industry participants can make their voices heard through a Mortgage Action Alliance (MAA) call to action.

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

3. 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:

• The State of the Non-QM Market – February 3
• Introduction to the MISMO API Toolkit for General Audiences – February 8
• Top 5 Areas of LO Litigation and Ways to Avoid Them – February
• Commercial/Multifamily: Market Distress and Loan Workouts – February 24
• Compliance in a Rapidly Changing Servicing Environment – February 24
• MAA Quarterly Webinar: February 2021 – February 25

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) 557-2890.