MBA Advocacy Update Sept. 19, 2022

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

On Tuesday, MBA led a coalition of real estate trade groups in a letter to the White House National Economic Council urging it to support reduction of mortgage insurance premiums for FHA loans. On Wednesday, the House advanced VA loan appraisal modernization legislation strongly supported by MBA. Also last week, FHA announced a delay of the mandatory effective date for its electronic appraisal delivery module.

MBA Submits Joint Letter Advocating for FHA Annual MIP Reduction

On Tuesday, MBA led a coalition of real estate trade groups in a letter to the White House National Economic Council urging it to support reduction of mortgage insurance premiums for Federal Housing Administration loans, a long-standing priority for MBA and its members. The letter highlighted the continued housing affordability crisis impacting low-and middle-income borrowers and first-time buyers while also emphasizing the current strength of the FHA Mutual Mortgage Insurance Fund. 

• Why it matters: Reducing the annual MIP would lower the monthly mortgage payment for borrowers with FHA-insured mortgages, helping to increase affordability during the current period of high home prices and mortgage rates.
• What’s next: MBA will continue to engage with the Biden administration, FHA, and other stakeholders on this issue. 

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

House Advances VA Appraisal Modernization Legislation  

On Wednesday, the House advanced H.R. 7735, the Improving Access to the VA Home Loan Benefit Act of 2022. Mark Jones, MBA Vice Chair, and CEO and Co-Founder of Amerifirst Home Mortgage, testified in support of the bill earlier this year before the House Veterans’ Affairs Subcommittee on Economic Opportunity. The MBA-endorsed legislation garnered broad bipartisan support and would require the VA to review appraisal certification requirements, encourage hybrid appraisals, employ emerging technologies, and revisit policies on property inspection waivers, minimum property requirements, and comparable sales. During debate (video timestamp: 1:42:20-1:44:20) on the floor, bill sponsor Rep. Mike Bost (R-IL) thanked MBA for working with his office on this critical legislation. In a press statement, MBA President and CEO Bob Broeksmit, CMB, applauded the bill’s passage and urged the Senate to pass companion legislation as swiftly as possible.

• Why it matters: The reforms included in H.R. 7735 would direct the VA to revisit existing program requirements in an effort to make appraisals more readily available and less cumbersome for buyers and lenders, effectively making servicemembers’ purchase contracts more competitive.
• What’s next: MBA will continue to advocate for the Senate to swiftly pass companion legislation — either as a standalone measure or as part of other moving legislative vehicles.

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

HUD Delays FHA Catalyst’s Electronic Appraisal Delivery Module  

On Thursday, FHA announced it would delay implementation of the FHA Catalyst’s Electronic Appraisal Delivery module to reassess aspects of its development. This pause only applies to the Catalyst EAD module. Moreover, FHA recommends that stakeholders postpone module integration until further guidance is available.

• Why it matters: The FHA Catalyst EAD module is an internet-based platform used by mortgagees and other stakeholders to electronically submit appraisal reports prior to endorsement.
• What’s next: MBA will continue to monitor FHA for updates.

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

New Jersey Governor Submits Amendments to Potentially Harmful Sheriff Sale Legislation

On Thursday, there was a positive development in a state advocacy effort in New Jersey. Gov. Phil Murphy (D) issued a conditional veto to amend legislation (A793) that would potentially harm foreclosure plaintiffs in a sheriff sale by setting an artificial cap (50%) on the upset price for the property being sold. MBA and the Mortgage Bankers Association of NJ worked closely with the Governor’s staff to develop amendments to the bill. The amended draft that Murphy submitted to the legislature will remove the artificial cap and allow plaintiffs to recover more of the unpaid balance, interest, and fees at sale.

• Why it matters: Requiring a 50% cap on the upset price would potentially force foreclosure plaintiffs to seek deficiency judgements against defendants and incentivize predatory investors to approach homeowners or residents with deals to purchase the home on their behalf at a deeply discounted price.
• What’s next: The New Jersey legislature can now either accept the Governor’s amendments or override his veto to adopt the original draft of the legislation. MBA and MBA of NJ are committed to partnering to further improve A793 during the 2023 legislative session.

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:

• CRE Mortgage Risk and What the Pandemic Taught Us – September 20
• State of Non-QM Lending & What You Need to Know Now – September 27
• Empowering Mortgage Servicers with Proactive KPIs – September 29
• Managing Liquidity and Operational Efficiency in a Fiercely Competitive Market – October 4
• Marijuana and Real Estate in 2022: What Every CRE Professional Should Know – October 19

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