MBA Advocacy Update Oct. 17, 2022

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

On Thursday, MBA and several industry trade groups – as part of the Black Homeownership Collaborative – submitted a letter to HUD urging the agency to reduce the annual mortgage insurance premium and suspend the life of loan requirement for borrowers with FHA-insured loans.

Also on Thursday, MBA submitted a comment letter in response to FHFA’s Request for Input on the roles, related processes, risks and opportunities of technology in housing finance. And on Monday, MBA submitted a letter to FHA leadership detailing its suggested amendments to the Single-Family Housing Policy Handbook. 

MBA Joint Trade Letter Urges HUD to Reduce MIP

On Thursday, MBA and several industry trade organizations – as part of the Black Homeownership Collaborative – submitted a letter to HUD Secretary Marcia Fudge urging her to reduce the FHA’s annual Mortgage Insurance Premium and modify the life of loan premium requirement. This effort follows an earlier letter submitted by an MBA-led coalition of real estate trade groups to the White House National Economic Council last month.

• Why it matters: MBA has strongly advocated for reduction of FHA mortgage insurance premiums since the November 2021 release of the Federal Housing Administration’s Annual Report to Congress, which showed continued strengthening of the FHA Mutual Mortgage Insurance Fund. MBA has also been tracking forbearance exits by FHA borrowers and believes current annual premium levels exceed the levels needed to maintain a well-reserved MMIF. A reduction in the FHA’s annual premium will drive the greatest payment relief for FHA borrowers.
• What’s next: MBA will continue to work with industry and housing group allies to call for a reduction in the MIP to provide meaningful relief to FHA-insured borrowers.

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

MBA Submits Comments in Response to FHFA Fintech RFI

On Thursday, MBA submitted a comment letter in response to the Federal Housing Finance Agency’s Request for Input on the roles, related processes, risks and opportunities of technology in housing finance. MBA’s wide-ranging response focused on the following five key themes:

• It is important to understand the industry’s recent history and experience with respect to technology adoption and innovation, and the current focal points for single-family and multifamily lenders when it comes to technology expenditures.
• The GSEs have an important role to play with respect to the direction of technology within the mortgage industry, but they need to work collaboratively with industry to ensure that solutions work beyond specific GSE use cases.
• Data is the source of financial innovation. Without access to data, innovation is hindered. FHFA should endeavor to open up access to data to spur innovation.
• Standards can accelerate innovation in myriad and unexpected ways. FHFA and the GSEs should avoid proprietary solutions and utilize broad-based industry standards (e.g., through MISMO) to develop collaborative, standards-based approaches to issues affecting the mortgage ecosystem.
• FHFA and the GSEs do not need to “solve” fintech issues. Helping to identify issues, their root causes, and collaborating on solutions that work for the entire mortgage ecosystem will be a successful outcome of this initiative.

MBA also urged FHFA to fully engage and collaborate with all market participants to avoid inadvertently hindering innovation through choices made by its regulated entities.

• Why it matters: The responsible use of fintech has many potential benefits including increasing efficiencies, lowering costs, and lowering risk. For these reasons, MBA has supported innovation executed in a safe and sound manner at both FHFA and the Enterprises.
• What’s next: MBA will remain engaged with FHFA and its Office of Financial Technology as they continue to address fintech and its impacts and opportunities in housing finance.

For more information, please contact Rick Hill at (202) 557-2718 or Sasha Hewlett at (202) 557-2805.

MBA Submits Letter Detailing Origination-Focused FHA Handbook Recommendations

On Monday, MBA submitted a letter to FHA leadership detailing suggested amendments to the Single-Family Housing Policy Handbook. The letter is a follow-up to previous recommendations sent earlier this year. Through rigorous feedback from MBA members, the letter highlights MBA’s FHA Handbook origination recommendations intended to reduce costs to originate and expand access for FHA financing, including reinstating verbal verification of employment, eliminating sourcing assets on non-credit qualifying streamline refinances, and aligning minimum property requirements.

• Why it matters: The FHA Single-Family Housing Policy Handbook provides guidance to lenders in the execution of FHA-insured mortgages – a crucial program for low- and moderate-income households, first-time homebuyers, and historically underserved borrowers nationwide. 
• What’s next: MBA will continue to work with FHA leadership and advocate for these and other improvements to its mortgage insurance program.

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

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:

• Marijuana and Real Estate in 2022: What Every CRE Professional Should Know – October 19
• Climate Risk in CREF – What we Know and are Learning – November 1
• Augmenting Talent with Technology – November 8
• TRID Housekeeping & Latest Information – November 15
• Inflation, Interest Rate, Cap Rates & Values: What Do We Really Know? – November 30

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