MBA Advocacy Update Mar. 14, 2022

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

Last week, both the House and Senate passed a $1.5 trillion Fiscal Year 2022 “omnibus” appropriations bill, which includes robust funding for HUD – and several wins for the industry. Also last week, MBA submitted comments to FHFA regarding its new strategic plan. 

Congress Advances Fiscal Year 2022 Omnibus Legislation

Both the House and Senate considered and passed a $1.5 trillion Fiscal Year 2022 “omnibus” appropriations bill, which includes robust funding for HUD – and several wins for the industry. H.R. 2471, the Consolidated Appropriations Act of 2022, passed by a bipartisan vote of 249-180 in the House and 68-31 in the Senate. MBA President and CEO Bob Broeksmit, CMB, released a statement earlier in the week congratulating the House for final passage and urging swift action in the Senate. 

• Why it matters: Once again, MBA advocacy prevented the inclusion of a previously proposed Federal Housing Administration (FHA) administrative fee by again securing appropriated funds for FHA technology upgrades for FY22. Additionally, the bill includes the MBA-supported Adjustable Interest Rate (LIBOR) Act of 2021, which provides clear guidance and a consistent federal standard for determining a replacement benchmark rate for the London Interbank Offered Rate, including for tough legacy contracts. Please see MBA’s summary of additional relevant provisions.
• What’s next: President Joe Biden will quickly sign the completed omnibus package into law. In the coming weeks, the administration is expected to release the President’s FY23 budget proposal, a blueprint of agency priorities provided to Congress as it begins the budget and appropriations process for the next fiscal year. This will kick off efforts in Congress to pass a new budget resolution, followed by work on 13 different appropriations bills, and a new opportunity for MBA and its members to engage policymakers and staff on industry priorities throughout this process. 

For more information, please contact Borden Hoskins at (202) 557-2712 or Alden Knowlton at (202) 557-2741.

MBA Expresses Views on Range of Issues in Response to FHFA Strategic Plan

On Friday, MBA submitted detailed comments to the Federal Housing Finance Agency in response to its draft Strategic Plan for Fiscal Years 2022-2026, which provides insight into the Agency’s activities and priorities for the coming years. In its comments, MBA strongly supported many of the broad objectives and the three overarching goals of the plan: securing the regulated entities’ safety and soundness, fostering housing finance markets that promote equitable access to affordable and sustainable housing, and responsibly stewarding FHFA’s infrastructure. MBA also raised significant concerns on several issues, including FHFA’s request to obtain authority to examine nonbank servicers, the need for a level playing field in terms of Fannie Mae and Freddie Mac pricing across origination channels, a problematic provision in the Senior Preferred Stock Purchase Agreements impacting the GSEs’ regulatory capital framework, and challenges with certain COVID-19-related policies. MBA also provided recommendations related to affordable housing, Special Purpose Credit Programs, climate risk management, appraisals, and expanded Federal Home Loan Bank membership, among others.

• Why it matters: Many of the objectives identified in the Strategic Plan, along with recent reforms to the GSEs, are critical prerequisites in preparing the GSEs to safely and sustainably exit conservatorship at the appropriate time.
• What’s next: MBA will continue to advocate with FHFA to permanently implement reforms needed to ensure the regulated entities meet their statutory missions, as well as operate with financial strength and, in the case of the GSEs, appropriate market conduct post-conservatorship.

For more information, please contact Sasha Hewlett at (202) 557-2805.

SEC to Consider Proposing Amendments to Enhance Climate-Related Disclosures 

On Thursday, the Securities and Exchange Commission announced that on March 21, it will consider whether to propose amendments to enhance and standardize registrants’ climate-related disclosures for investors. This action may result in the release of a Notice of Proposed Rulemaking that could affect many MBA member companies.

• Why it matters: This announcement provides further confirmation that federal agencies, supervisors, and regulators are increasing momentum in developing and enhancing climate-risk-related policies.
• What’s next: MBA will continue to monitor and notify its members of developments in the climate-risk space and provide formal comment to rulemakings like the potential NPRM from the SEC where appropriate.

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

House Financial Services Committee Holds Hearing on Inflation, Supply Chain Issues

On Tuesday, the House Financial Services Committee held a hearing on “Inflation Equation: Corporate Profiteering, Supply Chain Bottlenecks, and COVID-19.” With increases to the Consumer Price Index, record-high gas prices and supply chain issues dominating news headlines, HFSC Chair Maxine Waters (D-CA) convened the hearing to direct attention to the root causes of inflation. The hearing featured expert witnesses from the private sector to buttress the narrative of each party. Democrats blamed the current crisis on the 2017 Republican tax bill and corporate profiteering through “pandemic-related” price increases and the misuse of pricing power due to rampant consolidation across multiple industries. Republicans pointed to excess money supply and fiscal stimulus, additional costs and restrictions on investment arising from new rules and regulations, high energy costs and supply chain issues as the basis for inflation. 

• Why it matters: One of the witnesses, Mark Zandi, Chief Economist of Moody’s Analytics, stated the causes of the affordable housing shortage were complex, but that Congress should take additional actions to favorably impact price appreciation and supply issues, emphasizing the need for zoning reforms at the local level. 
• What’s next: While not a legislative exercise per se, the hearing served as a backdrop for how the two parties will frame the inflation issue during an election year – and influence the specific legislative proposals they ultimately decide to pursue. 

For more information, please contact Borden Hoskins at (202) 557-2712 or Alden Knowlton at (202) 557-2741.

MBA Testifies in Support of Kansas Bill to Permit Remote Work 

On Wednesday, MBA’s Kobie Pruitt presented testimony before the Kansas Senate Committee on Financial Institutions and Insurance to express support for legislation ( HB 2568) that would permit Kansas mortgage loan originators to work away from a licensed branch location. HB 2568, which recently passed (118-3) the House was introduced on behalf of the Kansas Office of the State Bank Commissioner. HB 2568 was developed in collaboration with OSBC, MBA and the Kansas real estate finance industry. The bill was unanimously supported by those providing testimony.

• Why it matters: The provisions of HB 2568 are consistent with the MBA model and other states that have acted to permit remote work.
• What’s next: The bill must now be voted on by the full committee prior to moving to the Senate floor. MBA will continue to work with our state and local partners to advocate for the passage of HB 2568. 

For more information, please contact Kobie Pruitt at (202) 557-2780.

MBA, Washington MBA Defeat Potentially Harmful Washington Data Privacy Bill 

On Monday, the Speaker of the House for the state of Washington suspended consideration of legislation (HB 1850) that would have enacted comprehensive changes to the state’s data protection laws. Through the advocacy efforts of the Washington MBA and national MBA, the industry was able to avoid potentially harmful enforcement mechanisms that would have created legal uncertainty for the industry. HB 1850 would have established a new data privacy commission to review, investigate, and enforce consumer complaints for new data privacy legislation, and it would have also created a new individual private right of action and permitted the Washington Attorney General to enforce data privacy violations. In addition, the bill would have established a new undefined tax to fund the regulatory commission. The Mortgage Action Alliance issued a Call to Action urging members in Washington to oppose HB 1850.

• Why it matters: Although HB 1850 included an industry-supported exemption for data covered by federal Gramm-Leach-Bliley protections, the new enforcement mechanisms and tax would have created too much uncertainty and risk for businesses in the state.
• What’s next: HB 1850 is no longer eligible for future consideration this session.

For more information, please contact Kobie Pruitt at (202) 557-2780 or Rosie Sheehan (202) 557-2933.

mPact Spring Fundraiser 

On Wednesday, March 16, mPact will host a Spring Fundraiser benefiting MBA Opens Doors Foundation in New York City at Five Iron Golf, Herald Square. mPact is MBA’s network for young real estate finance industry professionals, providing a community for them to share experiences, hone work skills, meet industry leaders, and elevate their voice in shaping the future of real estate finance. Join us for a fun-filled evening of networking, indoor golf, raffle prizes and a surprise live auction.

• Why it matters: Since 2018, the mPact Committee has made giving back to its communities a central part of its mission, selecting the MBA Opens Doors Foundation as its charity of choice. Each year, the mPact team takes on a series of fundraisers with the goal of raising funds to support the Opens Doors Foundation’s mission of providing mortgage and rental assistance grants to parents and guardians caring for a critically ill or injured child.
• What’s next: Help mPact support families in need while taking care of yourself! If you would like to register for multiple events, register here with a $40 donation.

For more information, please contact Lily Barajas at (202) 557-2874.

Register Today: MBA’s National Advocacy Conference – April 26-27

Registration is now open for MBA’s National Advocacy Conference April 26-27 in Washington, D.C. NAC allows you to connect directly with elected officials in our nation’s capital. Your story matters – share it with key policymakers as they consider and pass legislation that affects all of us. 

• Why it matters: The last two years have been unprecedented for millions of Americans, and the real estate finance industry is no different as we navigate new terrains. NAC gives you the opportunity to share your narrative with the key staff and decision-makers while networking with your colleagues from all over the industry. When we work together and combine our voices, we can do great things.  
• What’s next: Share your experiences, your voice, and your passion for our industry April 26-27! Register today at mba.org/nac and take advantage of the early-bird rate before the March 14 deadline.

For more information, please contact Rachel Kelley at (202) 557-2816.

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:

• CRE Investor Themes & Perspectives – March 16
• Ukrainian Situation: Cybersecurity Implications for Your Organization – March 18
• MISMO Monthly Webinar: ESG Industry Impacts and MISMO ESG Initiatives – March 24
• Tomorrow’s Servicing: Automated Transfers, Recoverables and Accuracy – March 29
• Special Purpose Credit Programs: The What, the Why, and the How – April 12
• CFPB Enforcement Authority Over Student Loans and Impact on Mortgage Lending – April 21

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