MBA Advocacy Update: MBA, Housing Policy Council Request Review Process for VA’s Foreclosure Prevention Proposal

1. MBA, HPC Request Review Process for VA’s Foreclosure Prevention Proposal

MBA and the Housing Policy Council recently requested a 30-day process to review and comment on the Department of Veterans Affairs’ (VA) latest foreclosure prevention concept, the Veterans Assistance Servicing Purchase Program (VASP). The letter cited that “additional details are needed in order to assess the borrower impact and the ability of servicers to deliver it without undue costs or risk (compliance or reputational).”

-Why it matters: The VASP program is a concept that VA has been developing as an expected solution to provide payment relief to distressed borrowers in today’s high-interest rate environment. Under VASP, the VA will modify the borrower’s payment to a below-market interest rate after purchasing the loan from the mortgage servicer. Despite the VA’s engagement with industry in recent months, VA has not provided any written program description, outline or framework. MBA and HPC believe stakeholders should have the opportunity to provide feedback on the program’s design and implementation. Specific issues that require greater transparency include the maximum number of borrowers served, the ability to provide relief promptly, VASP’s compliance with Regulation X (RESPA), and the ability to facilitate successful servicing transfers.
-What’s next: MBA will continue to monitor and communicate developments on VASP to members.

For more information, please contact Brendan Kelleher (202) 557-2779.

2. HUD Proposes Changes to the Face-to-Face Requirement

Last Monday, the Department of Housing and Urban Development (HUD) announced a proposed rule to modernize mortgage servicers’ engagement with borrowers in default on their Federal Housing Administration (FHA)-insured mortgage. HUD’s proposal preserves and expands the requirement for servicers to meet with all borrowers or make reasonable efforts to arrange a meeting using electronic communications. In an effort to reduce costs of servicing nonperforming FHA loans, HUD’s proposal also seeks to preserve the flexibilities afforded to mortgage servicers throughout the COVID-19 pandemic before the current partial face-to-face waiver expires at the end of the year.

-Why it matters: Eliminating the face-to-face requirement has been a top priority for MBA, citing the benefits of lessoning regulatory burdens and costs on servicers of nonperforming FHA loans.
-What’s next: Comments are due by Friday, September 29, 2023. MBA will formulate its response through the Loan Administration Committee.

For more information, please contact Brendan Kelleher (202) 557-2779.

3. MBA Submits Coalition Letter to FCC on Revocation of Consent under the TCPA

Last Monday, MBA and other trades sent a joint letter in response to the Federal Communications Commission’s (FCC) proposal clarifying how consumers may revoke consent to receive calls or texts under the Telephone Consumer Protect Act (TCPA). Specifically, the letter recommends that the FCC should provide that a business and its customer may contractually agree to specific methods by which the customer may revoke consent to receive autodialed or prerecorded calls or text messages covered under the TCPA. For situations where no contract exists, the trades propose that a consumer may revoke consent only if the revocation is sent in direct response to the caller’s communication or is directed to the line of business that originated the call or text using the methods provided by the caller or text sender. The letter also discusses why the FCC should publicize a standardized set of words that, if used, would create a presumption that the revocation attempt is reasonable. Finally, the letter urges the Commission to allow businesses to process revocation requests within six business days of receipt as opposed to 24 hours of receipt.

-Why it matters: The FCC proposes to codify and, in certain respects, expand upon its 2015 ruling that stated consumers who have provided prior express consent under the TCPA to receive autodialed or prerecorded voice calls or text messages may revoke consent through “any reasonable means.” Given the potential monetary penalties for TCPA infractions, it is important for companies to continue to track consent status of their customers and have procedures in place to process revocation.
-What’s next: MBA will continue to monitor this rulemaking and provide any relevant updates.

For more information, please contact Alisha Sears at (202) 557-2930.

4. MBA Letter to CSBS Highlights Concerns, Calls for Delay of Major Revisions to NMLS Mortgage Call Report

MBA recently sent a letter highlighting its concerns to the Conference of State Bank Supervisors (CSBS) following the June 20th announcement of major revisions to the Nationwide Mortgage Licensing System’s (NMLS) Mortgage Call Report (MCR). The new requirements must be used for next year’s first quarter filing due on April 1. In addition to requesting a new comment period – the last opportunity was five years ago in early 2018 – MBA asked for a minimum, 18-month implementation period, the establishment of a minimum annual loan threshold for the expanded reporting, and for the inclusion of additional information on the MCR webpage to enable member companies to better understand what may have changed for their filings.

-Why it matters: Implementation of changes like the MCR filing require time and affected parties should have the opportunity to provide feedback. Delaying implementation allows institutions and vendors to make the appropriate updates to their processes before implementation.
-What’s next: MBA will continue to work with CSBS on alignment with other forms of filing – such as the Mortgage Bankers Financial Reporting Form (MBFRF) – and plans to continue conversations with CSBS and individual regulators at the upcoming American Association of Residential Mortgage Regulators (AARMR).

For more information, please contact William Kooper (202) 557-2737 or Liz Facemire (202) 557-2870.

5. Get Involved – MBA Advocacy Month Kicks Off in September

Join MBA’s Legislative and Political Affairs (LPA) team in September for MBA Advocacy Month, an all-member, national campaign focused on raising awareness regarding the top single-family and commercial/multifamily issues impacting members during these challenging, current market conditions.

-Why it matters: Throughout the month, MBA will work with members to engage with their employees and help run impactful Mortgage Action Alliance (MAA) and MORPAC campaigns. In addition, MBA staff will host (virtual) events, including legislative townhall(s) and webinars on how members can make their voices better heard.
-What’s next: If interested in learning more and how to get involved, visit mba.org/advocacymonth.

For more information, please contact Jamey Lynch, AMP at (202) 557-2818.

6. 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:

-Budgeting and Financial Planning for Non-Believers – August 22
-C-PACE Financing 101: A Commercial/Multifamily Lender’s Overview – August 23
-Current Expected Credit Losses (CECL) Updates – August 24
-Navigating the Obstacles in Multifamily Housing: Perspectives from the Affordable Rental Housing Advisory Council – August 29
-Succeeding Today and Tomorrow: Tech Tools That Can Drive More Market Share – September 7

For more information, please contact David Upbin at (202) 557-2931.

MBA members can register for any of the above events and view recent webinar recordings.