MBA Advocacy Update Jan. 24, 2022

Bill Killmer; Pete Mills

On Wednesday, Fannie Mae and Freddie Mac released three documents providing additional information on implementation of expanded availability of desktop appraisals. Also last week, the Pennsylvania Senate unanimously passed legislation that will permit mortgage loan originators to work from a remote location.

Fannie Mae, Freddie Mac Release Preliminary Information on Desktop Appraisal Implementation

On Wednesday, Fannie Mae and Freddie Mac released three documents providing additional information on the implementation of the expanded availability of desktop appraisals. Fannie Mae provided Desktop Underwriter/Desktop Originator release notes for a DU Version 11.0 update that include the desktop appraisal option. The desktop option may be applied to loan case files submitted or resubmitted on or after the weekend of March 19, 2022. Additionally, Fannie Mae published a high-level Fact Sheet, and Freddie Mac published a document detailing Loan Product Advisor feedback messages for automated collateral evaluation, effective March 6.

  • Why it matters: The desktop option was first announced by Federal Housing Finance Agency Acting Director Sandra Thompson at MBA’s Annual Convention in response to industry and homebuyer concerns about rising costs and delayed turn times due to a shortage of appraisers. MBA strongly supports efforts to modernize and improve the appraisal process. Increased use of desktop appraisals and other alternatives to traditional appraisals would help alleviate some of the pressure on the appraisal system.
  • What’s next: MBA will work with Fannie Mae and Freddie Mac to ensure an efficient and practical implementation of the revised policy. In addition, MBA will participate with the Federal Housing Administration, HUD and the federal banking agencies in their initiatives to improve the collateral valuation process for lenders, investors, and consumers. 

For more information, please contact Hanna Pitz at (202) 557-2796.

Pennsylvania Legislature Passes Legislation to Permit Remote Work

On Wednesday, the Pennsylvania Senate unanimously passed legislation (HB 1588) that will permit mortgage loan originators to work from a remote location. HB 1588, which recently passed 200-1 by the House, has now been passed by both chambers. HB 1588 will now be prepared and sent to Pennsylvania Governor Tom Wolf for his signature.  

  • Why it matters: The bill makes permanent flexibilities that were permitted on a temporary basis during the height of the pandemic. The provisions of HB 1588 are consistent with the MBA model and other states that have acted to permit remote work.
  • What’s next: MBA will continue to work with our state and local association partners to advocate for its model legislation and regulation to create licensing flexibility nationwide.

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

State Regulators Announce Settlement with Hundreds of MLOs over Violations of SAFE Act Education Requirements

On Tuesday, the Conference of State Bank Supervisors announced 44 regulators from 42 states had reached settlements with 441 MLOs nationwide. The action relates to violations over a four-year period of federal and state education requirements that were fraudulently provided by a previously certified California-based provider, Real Estate Education Services. In each of the settlement states in which they are licensed, the MLOs who signed the agreement must a) surrender their licenses for 90-days, b) retake their pre-licensing and continuing education, and c) pay a $1,000 fine. None of the MLOs’ lender employers are implicated in the settlement. MBA worked with CSBS to ensure greater transparency and guidance for lenders in managing the compliance and operational issues stemming from this multistate action. As a result, many of the responses in the FAQs recently released by CSBS directly reflected MBA member questions. 

  • Why it matters: MBA members should carefully review the FAQs, enable notification settings in the Nationwide Multistate Licensing System & Registry to help identify the impacted MLOs, and put processes in place to move loan files to other licensed staff as appropriate. NMLS records for all MLOs should be updated and now reflect the settlement and the surrender.
  • What’s next: MBA will continue to engage with CSBS on this matter. It is possible, for example, that these MLOs could face disciplinary actions by regulators not party to the agreement. Moreover, there are approximately 150 additional MLOs who took REES courses but did not participate in the agreement, and their future disposition is unclear.

For more information, please contact Pete Mills at (202) 557-2878 or William Kooper at (202) 557-2737.

mPower Moments: On Empowering Your Brain to Overcome Anxiety and Self-Doubt with Mel Robbins

In this episode of mPower Moments, mPower Founder Marcia M. Davies chats with Mel Robbins, syndicated talk show host and international best-selling author.

  • Why it matters: Robbins shares tips and mind tricks that work to overcome self-doubt and anxiety, while building your confidence in your personal and professional life. Robbins explains how a simple high-five in the mirror can make all the difference.
  • What’s next: To watch more mPower Moments, click here.

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

Upcoming 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 webinars – which are complimentary to MBA members:

  • Winning Game Plan for Improving “B” Originators – January 25
  • Commercial Real Estate and a Net Zero Future: Challenges, Opportunities, and Considerations – January 27
  • IRS Tax Transcripts – 4506-C Changes and Other Updates – February 2
  • Fair Lending and Redlining, Part I – Overview of Regulations and Enforcement – February 7
  • Mortgage Servicing Spotlight: Best Practices for Managing Borrower Communications – February 8
  • Fair Lending and Redlining, Part II – Managing and Maintaining Your Compliance Program – February 9
  • Successful Recruiting in a Changing Marketplace – February 10
  • CONVERGENCE: The 2022 Legislative Outlook for Affordable Housing – February 17

MBA members can register for any of the above events and view recent webinar recordings. For more information, please contact David Upbin at (202) 557-2931.