Home > MBA Newslinks > MBA NewsLink Monday, Feb. 27, 2023

MBA Advocacy Update Feb. 27 2023

February 27, 2023

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

HUD Reduces Mortgage Insurance Premiums for FHA Insured Mortgages 

On Tuesday, HUD announced a 30-basis-point reduction to the annual Mortgage Insurance Premium for Federal Housing Administration-insured loans. The action addresses a top MBA advocacy priority since 2021. Effective for FHA Title II Single Family forward mortgages endorsed on or after March 20, 2023, the annual MIP will be reduced from 0.85% to 0.55%. The reduction will only apply to new borrowers existing. FHA borrowers will not be eligible except through a refinance.

  • Why it matters: For a borrower purchasing the median priced home ($467,700 in December 2022) with a low downpayment FHA loan, the MIP reduction will result in savings of approximately $115 per month. In a press statement following the announcement, MBA President and CEO Bob Broeksmit, CMB, applauded the move, stating, “The lower premiums will expand homeownership opportunities by lowering mortgage payments for qualified FHA borrowers, providing critical relief from the steep rise in mortgage rates and home prices just in time for the spring buying season. This will especially help minority homebuyers and low-and moderate-income households who are predominantly served by FHA loans.”
  • What’s next: MBA will continue to monitor the FHA’s Mutual Mortgage Insurance Fund (MMIF) performance to ensure the program protects taxpayers with strong reserves, without charging borrowers excessively high premiums. Stay connected to FHA regulatory updates by joining the Government Loan Production Subcommittee and Loan Administration Committee.

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

FHFA Issues NPR Modifying Portions of Enterprise Capital Rule

On Thursday, the Federal Housing Finance Agency issued a Notice of Proposed Rulemaking that would amend certain portions of the Enterprise Regulatory Capital Framework. The proposed rule includes modifications of certain provisions of the ERCF related to guarantees on commingled securities, multifamily mortgage exposures secured by properties with government subsidies, derivatives and cleared transactions, and credit scores. These changes aim to provide clarity on certain aspects of the ERCF and better align it with the ERCF with the Enterprises’ risk exposures.

  • Why it matters: As Director Sandra Thompson noted, the capital rule continues to be used as a tool to manage the Enterprises’ risk, which has been evident in recent policy decisions. While the NPR contains important amendments reflecting previous issues highlighted by MBA, such as the risk weighting for comingled securities, it does not directly address longstanding issues such as disparities in Third-Party Origination pricing. Because the rule addresses risk weightings within the ERCF, MBA will be providing comment on a variety of additional issues.  
  • What’s next: FHFA will accept public comments on the NPR within 60 days of its publication to the Federal Register. MBA will continue to analyze the NPR in the coming days and will work with members as we prepare our response. 

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

MBA Continues Efforts to Remove New DTI-Based LLPA 

MBA has continued to engage with FHFA to highlight why a debt-to-income based Loan Level Price Adjustment is unworkable. Following up on our recent letter to FHFA, MBA provided data and examples demonstrating how a DTI-based LLPA creates operational costs and compliance risks for lenders and compromises the customer experience for borrowers by introducing frequent changes in pricing and redisclosures during the loan origination process. MBA also continues to support state MBAs that want to weigh in on the issue. So far, 11 state associations have sent letters and more are expected to follow suit. 

  • Why it matters: MBA continues to believe the DTI ratio LLPA is unworkable and has stressed that the implementation date of May 1, 2023, should be delayed six months to allow time to find alternative approaches to mitigating the Enterprises’ exposure to high DTI ratios that do not pose hardships to both lenders and borrowers. 
  • What’s next: MBA will continue to advocate for a more sensible alternative to the DTI-based LLPA and will remain engaged with FHFA on this issue. State Associations seeking assistance should contact Anthony Siller at (202) 557-2944. 

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

House to Consider Bill to Establish Federal Minimum RON Standards

Last week, Reps. Kelly Armstrong (R-ND) and Madeleine Dean (D-PA) re-introduced H.R. 1059 the SECURE Notarization Act. On February 27, the bill will be debated and voted on by the full U.S. House under suspension of the rules – a process reserved for measures expected to pass the House by at least a two-thirds majority. This MBA-supported measure complements the 42-state remote online notarization (RON) laws by creating a set of minimum federal standards, while allowing individual states the flexibility and freedom to implement their own RON standards.

  • Why it matters: A direct result of MBA’s outreach and advocacy, H.R. 1059 requires tamper-evident technology in electronic notarizations and provides fraud prevention using multifactor authentication for identity proofing and audiovisual recording of the notarial act. H.R. 3962, the SECURE Notarization Act, was passed by the House last July during the 117th Congress but failed to move through the Senate.  
  • What’s next: Earlier today, MBA’s Mortgage Action Alliance (MAA) issued a Call to Action urging members to contact their representatives to voice their support for the bill. 

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

House Panel Schedules Markup of Data Privacy Proposal 

Next week, the House Financial Services Committee will meet to potentially consider 14 separate bills, including Chairman Patrick McHenry’s (R-NC) evolving draft proposal, the Data Privacy Act of 2023. McHenry’s legislation, which he began circulating for discussion months ago, is an attempt to set a new federal standard for how financial firms handle consumer data. The proposal, which would preempt state-level privacy rules, includes provisions that would require companies to provide more disclosures to consumers and give individuals the ability to request their records be deleted. 

  • Why it matters: The HFSC is just one of multiple House and Senate committees that hold jurisdiction of the data privacy issue. In the short term, MBA and its coalition partners are seeking to ensure the McHenry proposal: (1) exempts all Gramm-Leach-Bliley Act regulated institutions; (2) preempts existing state privacy laws to avoid duplicative and conflicting requirements; and (3) does not include a private right of action or unduly expand the CFPB’s (or other federal regulators such as the FDIC’s or OCC’s) existing enforcement authorities. 
  • What’s next: McHenry will continue to seek input from stakeholders and his committee members – on both sides of the aisle – prior to advancing his Data Privacy Act next week (potentially as early as next Tuesday). Throughout the bicameral, multi-committee debate on data privacy this Congress, MBA staff will continue to seek legislative language that protects our members’ ability to appropriately utilize customer information to make sound mortgage underwriting/origination decisions.  

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

Virgnia Legislature Passes Legislation to Permit Remote Work for MLOs

On Wednesday, the Virginia legislature passed legislation (HB 2389) supported by the Virginia MBA that will allow mortgage loan originators to work away from a licensed branch location. HB 2389 requires licensees to employ appropriate risk-based monitoring and oversight processes. In addition, it prohibits in-person customer interactions at an employee’s or exclusive agent’s residence, unless the residence is an approved office.       

  • Why it matters: HB 2389 is consistent with the MBA model and other states that have acted to permit remote work. Currently, there are 23 states plus the District of Columbia that have enacted legislation, promulgated rules, or issued regulatory guidance that permanently allows MLOs to work from a remote location.
  • What’s next: HB 2389 must now be transmitted to Virginia Gov. Glenn Youngkin (R) for his signature to become law. MBA will continue to work with our state and local association partners to advocate for its model legislation and regulation to create licensing flexibility nationwide. 

For more information, please contactWilliam Kooper (202) 557-2737.

Montana Enacts Bill to Authorize MLO Remote Work and Implement CSBS Model Servicing Standards

Late last week, critical changes to Montana’s mortgage policy statutes (HB-30) that have been supported by the Montana Mortgage Association were signed into law by Governor Greg Gianforte (R). The statute implements the model framework for capital, liquidity, and governance standards for nonbank servicers issued by the Conference of State Bank Supervisors that MBA helped shape. It also codifies standards for Montana-licensed MLOs to work from somewhere other than a licensed location and provides the authority for the state’s regulator to promulgate related rules. Significantly, the bill’s section on remote work follows the contours of MBA’s model state law and regulation.    

  • Why it matters: Including Montana, 22 states and D.C. have enacted policies that permanently allow MLOs to work from a remote location. Adoption of the CSBS model for nonbanks helps maintain similar requirements across multiple states.
  • What’s next: MBA will continue to work with its partner state associations to support the pursuit of consistent laws and rules among state policy makers.

For more information, please visit MBA’s MLO Licensing Flexibility resource page or contact William Kooper (202) 557-2737.

[VIDEO]: mPower Moments: On Owning the Room with Dethra Giles 

In this mPower Moments episode, mPower Founder Marcia M. Davies sits down with Dethra Giles, International Consultant, Best-Selling Author, and CEO of ExecuPrep. Giles discusses her career journey as a consultant as well as her dedication to helping professionals boost their confidence and find their inner voice. During this insightful interview, she also explains the importance of being an active learner and how it can help improve your career. 

  • What’s next: To watch more mPower Moments, click here.

For more information, please contact Marcia Davies at (202) 557-2707.

Register for mPact Fundraiser at AT&T Stadium in Dallas 

​On March 6, mPact, MBA’s network for young professionals, will host an in-person fundraiser benefiting the MBA Opens Doors Foundation. Join us for a fun night of networking while we tour and dine at AT&T Stadium, home of the Dallas Cowboys.

  • Why it matters: Since 2018, the mPact Committee has made giving back to their communities a central part of their 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! Please register here with a $50 donation. Unlimited raffle tickets are also available for $10 each.

For more information, please contact Jacky Salazar at (202) 557-2746.

Register Today for MBA’s mPact Summit on March 7th 

​On March 7, mPact will host its first mPact Summit in Plano, Texas. Join an exclusive group of young professionals from both the residential and commercial/multifamily real estate finance sectors for a day of career development and industry programming. Young professionals have selected the sessions and developed networking opportunities with senior leaders for this inaugural event. 

  • Why it matters: Event topics include developing leadership skills, learning how to navigate your career, and building and practicing networking skills. You won’t want to miss this opportunity. 
  • What’s next: Registration is capped at 100 participants and closes on February 27. Register now.

For more information, please contact Jacky Salazar at (202) 557-2746.

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:

  • Market Recommendations and Profitability Insights for 2023 – February 28
  • Top Commercial Mortgage Servicing Issues in 2023 – March 6
  • Responsibly Using AVMs and AI to Automate Appraisal Underwriting – March 8
  • Achieving Success in Ginnie Mae’s Digital Collateral Program – March 14

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

Tags:
Read next article
Back to Full Issue