MBA Advocacy Update: Jan. 30, 2023
Bill Killmer bkillmer@mba.org; Pete Mills pmills@mba.org
MBA’s Mike Fratantoni Testifies to FFIEC on Appraisal Reform
On Tuesday, MBA SVP and Chief Economist Mike Fratantoni testified during a Federal Financial Institutions Examination Council’s Appraisal Subcommittee hearing on appraisals. The ASC hearing was led by ASC Executive Director Jim Park and the Consumer Financial Protection Bureau’s Deputy Director (and ASC Board Chair) Zixta Martinez. Park and Martinez were joined by HUD Secretary Marcia L. Fudge, Consumer Financial Protection Bureau Director Rohit Chopra and Federal Housing Finance Agency Director Sandra Thompson. To watch a recorded version of the hearing, click here.
- Why it matters: Fratantoni provided testimony to the subcommittee detailing MBA’s recommendations on ways to reform the appraisal regulatory structure as well as the association’s ongoing advocacy efforts in combatting appraisal bias and leveraging technology to improve valuation accuracy. Read his testimony here.
- What’s next: MBA’s residential policy committees continue to work to provide detailed suggestions to agencies, investors, and guarantors on policy changes that could expand and diversify the appraiser workforce, streamline appraisal processes, and reduce bias. MBA will continue to follow this issue and provide relevant updates.
For more information, please contact Mike Fratantoni at (202) 557-2935 or Hanna Pitz at (202) 557-2796.
Ginnie Mae Announces Effective Date for New Re-Pooling Requirements
Last week, Ginnie Mae announced effective February 1, it will shorten the current seasoning requirement for pooling re-performing loans bought out of Ginnie securities from six months to three months and will allow issuers the option to pool re-performing loans into TBA-eligible Ginnie Mae II Multi-Issuer Pools. These changes, which reverse several of the temporary pooling restrictions placed on re-performing loans introduced during the pandemic, were first announced in October 2022 at MBA’s Annual Convention. Ginnie Mae President Alanna McCargo notes that this policy change was delivered earlier than expected and demonstrates Ginnie Mae’s commitment to maintaining the strength and liquidity of the government mortgage market.
- Why it matters: These pooling policies have important implications for the servicing of loans in forbearance, and the changes should provide additional flexibility to support issuers and borrowers to ensure liquidity is reliably available.
- What’s next: Ginnie Mae will publish an All Participant Memorandum in the coming days that reflect these changes. MBA will remain engaged with Ginnie Mae on this and other critically important policy issues.
For more information, please contact Sasha Hewlett at (202) 557-2805.
Federal Reserve Sets Effective Date for LIBOR Termination
On Thursday, the Federal Reserve Board published a final rule in the Federal Register implementing the Adjustable Interest Rate (LIBOR) Act.
- Why it matters: The final rule seeks to settle many London Interbank Offered Rate transition questions and sets a statutory benchmark for contracts without a clear LIBOR replacement.
- What’s next: The rules effective date is February 27. Contracts without a clear LIBOR replace will adopt the Secured Overnight Financing Rate (SOFR) following the first London banking day after June 30.
For more information, please contact Sasha Hewlett at (202) 557-2805.
Illinois Extends Comment Period for New CRA Rules; Maryland Introduces New CRA Bill
On Thursday, the Illinois Department of Financial and Professional Regulation contacted key industry stakeholders to formally extend the public comment period on its recently proposed rules to implement the Illinois Community Reinvestment Act. In addition to the new March 16, date, the IDFPR will be holding separate public hearings on different aspects of the rule. IDFPR will receive testimony on the proposed ILCRA rules for state banks and for independent mortgage banks (IMBs) on March 2 and for credit unions on March 8. In a related development and as expected, legislation was introduced this week in Maryland to apply CRA mandates to IMBs, credit unions, and state-chartered banks.
- Why it matters: MBA and the Illinois MBA previously requested – and received – additional time to respond to the proposed rules. The extension and the new hearings provide an appropriate period to work with member firms evaluate the sweeping proposals.
- What’s next: MBA will work with its state association partners to oppose all bills that create community reinvestment requirements for IMBs. We will also work to reduce divergent and contradictory requirements among states and between federal rules and any state mandates.
For more information, please contact William Kooper (202) 557-2737 or review MBA’s resource center at www.mba.org/StateCRA/
Register Today for MBA mPact Summit March 7
On March 7, mPact, MBA’s network for young professionals, 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:
- Combating the Downturn: Strategies to Optimize Borrower Support in Recessionary Environments – January 31
- MAA Quarterly Webinar: February 2023 – February 7
- Home Equity Lending: An Assessment of Today’s Market Landscape & Cashout Opportunities – February 9
- Five Steps to Improve Efficiency, Compliance and Automation in Your Mortgage Operations – February 16
- Single Family Rental Remains Resilient – February 23
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.
