MBA Advocacy Update Nov. 14 2022

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

With midterm congressional election results yet to be determined in several key states and districts across the country, Republicans are trending towards a narrow House majority, while the Senate remains a tossup (as of this writing). MBA will continue to actively review and monitor those outcomes as officially finalized – and comment on their implications for members – in the coming days and weeks.    

FHFA Announces 2023 Multifamily Loan Purchase Caps for Fannie Mae and Freddie Mac

On Friday, the Federal Housing Finance Agency announced 2023 multifamily loan purchase caps for Fannie Mae and Freddie Mac will be $75 billion for each Enterprise (for a total of $150 billion). FHFA maintained the requirement that 50 percent of the Enterprises’ business must be for mission-driven affordable housing and added a new mission-driven category for workforce housing properties. Also, consistent with MBA’s recommendations, FHFA removed the requirement that 25 percent of the Enterprises’ multifamily business be affordable at 60 percent of area median income or below to create more consistencies with the Enterprises’ housing goals.

MBA President & CEO Bob Broeksmit, CMB, issued the following statement:

“Given current market conditions and the expected decline in the multifamily originations market, FHFA’s slight decrease in next year’s caps is appropriate and ensures a level playing field across various capital sources.

“MBA commends FHFA for its continued commitment to affordable rental housing, including workforce housing, and for providing stable liquidity to the marketplace. We also appreciate FHFA’s flexibility should the caps need to be increased, and its decision to streamline certain mission-driven requirements.

“MBA looks forward to continuing its work with FHFA, the GSEs, and other stakeholders to increase the supply of affordable rental housing in communities across the country.” 

  • Why it matters: The caps are $3 billion less for each Enterprise compared to 2022, which reflects a likely reduction in overall multifamily mortgage activity in 2023. FHFA did note in the announcement that they will monitor the market and update the caps and mission-driven targets as needed (but will not reduce the caps).
  • What’s next: MBA will analyze FHFA’s announcement and communicate any relevant information to our members.

For more information, please contact Stephanie Milner at (202) 557-2747.

MBA Participates in White House Meeting on Tenant Protections

On Tuesday, Matt Rocco, 2023 MBA Chairman, and Chairman of the Board and Chief Executive Officer of Grandbridge Real Estate Capital, joined a small group of industry and affordable housing leaders for a constructive meeting with key White House and agency staff on affordable rental housing and tenant issues. The group discussed topline issues and best practices for the rental market, including leasing and compliance, housing counseling and education, and affordable housing supply.  

  • Why it matters: Rocco’s remarks focused on his experiences as a provider of multifamily financing through the government-sponsored enterprises’ and Federal Housing Administration’s lending programs, highlighting how tenant education can help renters stay in their homes. He also touted credit history building programs for renters as a way to establish credit to eventually buy a home. With a letter from tenant rights groups currently circulating that asks for the White House to impose rent control on GSE loans, Rocco stressed that rent control is not the answer, and has been proven to reduce both the supply and the overall health of affordable rental housing.  
  • What’s next: MBA will continue to work with members, the Biden administration, Congress, and industry stakeholders on safe and responsible policies that increase affordable rental housing and homeownership options for all households.

For more information, please contact Bill Killmer at (202) 557-2736 and Mike Flood at (202) 557-2745.

MBA Closely Monitoring NMLS Renewal Process; Remains Engaged with CSBS 

Earlier system-wide Nationwide Multistate Licensing System issues have been resolved, but MBA continues to be engaged with the Conference of State Bank Supervisors on company-specific problems that have developed during the current licensing renewal season, which began on November 1. 

  • Why it matters: MBA urges member companies to frequently review the NMLS resource page for any announcement regarding potential system outages, and to contact our staff to report any issues. MBA has been communicating directly with CSBS staff to ensure all developments are being addressed as quickly as possible.
  • What’s next: The 2022 license renewal period is ongoing and will end at midnight on December 31. MBA will continue to engage with CSBS and state regulators during the license renewal period and strongly recommends that member companies start the process for all licensees immediately.  

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

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:

  • TRID Housekeeping & Latest Information – November 15
  • Inflation, Interest Rate, Cap Rates & Values: What Do We Really Know? – November 30
  • Ensuring HMDA Data Integrity and Common Reporting Issues – December 14
  • Ten Things Your Company Must Do in 2023 – January 18

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.