MBA Advocacy Update Sept. 11: Senate Banking Committee Holds Property Insurance Hearing

  1. Senate Banking Committee Holds Hearing on Property Insurance

Last week the Senate Banking Committee held a hearing titled, “Perspectives on Challenges in the Property Insurance Market and the Impact on Consumers.”

• Why it matters: MBA submitted a letter/statement for the record ahead of the hearing on top industry priorities, including the need to reauthorize the National Flood Insurance Program (NFIP) – set to expire on September 30, 2023 – addressing the rising costs and declining availability of private property insurance coverage, and reforms to the Federal Housing Administration (FHA)-insured Multifamily Program.
• What’s next: MBA will work with members of Congress on both sides of the aisle to stress the importance of avoiding a lapse in the NFIP program while stressing the need for a long-term authorization to protect residential and commercial real estate markets and provide stability for the companies and agents that sell and administer the NFIP.

For more information, please contact Ethan Saxon at (202) 557-2913 or George Rogers at (202) 557-2797.

  1. MBA Addresses Mortgage Call Report Concerns at NMLS Ombudsman Meeting

Last Wednesday, MBA had the opportunity to present its concerns with the recently announced changes to the Nationwide Mortgage Licensing System’s (NMLS) Mortgage Call Report (MCR) at the Conference of State Bank Supervisors’ (CSBS) Ombudsman meeting. The discussions at the meeting included mortgage-related panels on NMLS updates and new state branch licensing issues within the NMLS. MBA was able to discuss industry issues in more detail with CSBS and regulators and echo earlier points made in a July letter.

• Why it matters: Changes to MCR filing require time and affected parties should have the opportunity to provide feedback. MBA’s request to delay implementation allows institutions and vendors to make the appropriate updates to their processes.
• What’s next: CSBS and MBA will continue coordinating on the MCR rollout issue as well as other industry concerns. The next Ombudsman meeting will be held in person at the NMLS Conference in February 2024. Additionally, CSBS released information on the 2024 renewal period, which begins on November 1.

For more information, please contact Rick Hill (202) 557-2718 or Liz Facemire (202) 557-2816.

  1. MBA Offers Recommendations to FASB’s Proposed Accounting Standards Update on Acquired Financial Assets

MBA recently submitted comments to the Financial Accounting Standards Board (FASB) on its proposed Accounting Standards Update (ASU) that are intended to improve the accounting for financial assets acquired in a business combination or purchase. The proposal would generally eliminate the current two-method approach to accounting for qualifying acquired financial assets and replace it with the simpler the purchased credit deteriorated (PCD) method of accounting.

• Why it matters: MBA agrees with FASB that the current two-method accounting creates unnecessary complexities and comparability issues under GAAP. However, there is concern that the proposed application of a “seasoning” requirement would exclude mortgage loans acquired less than 90 days from origination from the PCD method. If left unchanged, the rule would exclude entities/purchasers that acquire mortgage assets from IMBs, banks, and other originators from getting the benefit of the new simplified accounting method for all purchased financial assets. MBA recommended that FASB eliminate the “seasoning” requirement for home mortgage loans, or in the alternative, modify the proposal to make clear that the mortgage banking business model is illustrative of the “facts and circumstances” that the flexibility in the rules is intended to apply to.
• What’s next: MBA will continue to work with FASB to ensure that the final rules do not unintentionally impact mortgage secondary market activities.

For more information, please contact Fran Mordi at (202) 557-2860.

  1. FHA Waives Lender Requirement to Report Mortgage Denials

FHA last week announced it is releasing a waiver relieving FHA-approved lenders of the obligation to report declined loans in the FHA Connection (FHAC) system. At present, when a lender denies a borrower’s application for an FHA-insured mortgage, the denial details are required to be recorded in FHAC and linked to the borrower’s case number for a duration of six months.

• Why it matters: Reporting borrower denials has been found not to enhance risk management and is frequently the reason why other lenders decline an applicant, even if that borrower may meet the criteria for a loan in other respects. MBA members and staff have urged FHA leadership to eliminate this reporting requirement on numerous occasions in the past.
• What’s next: The waiver will apply to all cases pending endorsement on or after September 11, 2023.

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

  1. RON Bill Passes California Assembly Reading with Amendments

The California Assembly Committee on Appropriations passed a remote online notarization-related (RON) bill (SB 696) out of committee with amendments, and the bill cleared the Assembly floor yesterday evening. The amended bill text would delay California-commissioned notaries’ ability to perform RON until at least 2030, unless the Secretary of State office is able to implement commissions sooner. However, the bill retains language providing recognition of out-of-state RON notarizations, with overly burdensome reporting requirements having been removed from the original text. Next Thursday (September 14) is the deadline for the bill to pass the legislature before the upcoming scheduled recess.

• Why it matters: California is the industry’s largest origination state and would become the 45th state to enact RON for real estate transactions. The ability to perform RON transactions will provide more opportunity for notaries while increasing availability and flexibility of notary services for mortgage closings.
• What’s next: The bill awaits action on the Senate floor to concur in the House amendments. MBA will continue to work with industry stakeholders to pass RON legislation in California in a form that fits the industry’s needs prior to the scheduled September 14 deadline.

For more information, please visit or contact William Kooper (202) 557-2737 or Liz Facemire (202) 557-2816.

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

Join MBA’s Legislative and Political Affairs (LPA) team this month for MBA Advocacy Month, an all-member campaign focused on raising awareness on the top single-family and commercial/multifamily issues that can help produce positive policy changes at the national level.

• Why it matters: Throughout this 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 townhalls and webinars with a focus on how members can make their voices more effectively and better heard.
• What’s next: If interested in learning more and how to get involved, visit

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

  1. 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:

• Optimizing Technology in the Origination Process – September 12
• Budgeting and Financial Planning for Non-Believers – September 13
• Section 1071: A Practical Approach to Unpacking the CFPB’s Final Rule – September 13
• Value of Surveillance in Managing CRE Credit Risk – September 14
• MCPI/Zone of Opportunity: Understanding the Demand Side of Mortgage Origination – September 26
• An Overview of Regulatory Capital Requirements Proposed Revisions – September 27
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.