MBA Advocacy Update: Coalition Letter on IVES Concerns; GSE News from #MBAIMB24; MBA Pushes for Swift Action on Tax Package

Coalition Pens Letter to Key Congressional Leaders on IVES Concerns

Last Wednesday, MBA and a broad coalition of stakeholders sent a letter to key congressional tax writers expressing concerns about recent Internal Revenue Service (IRS) changes regarding the Income Verification Express Service (IVES) system. The letter also urged the House Ways and Means and Senate Finance Committees’ Chairs and Ranking Members to actively consider – and pass – H.R. 3335, the “IRS eIVES Modernization and Anti-Fraud Act of 2023,” a bipartisan bill introduced last year by House Financial Services Committee Chair Patrick McHenry (R-NC) and Jimmy Panetta (D-CA).

Why it matters: As part of the bipartisan Taxpayer First Act enacted in 2019, policymakers required the IRS to implement long-needed changes to the IVES system used by stakeholders to verify an applicant’s income, help prevent fraud, and ensure accurate underwriting. The IRS has failed to meaningfully consult with industry on implementation issues and thereby prolonged an unnecessarily costly and overly complex system.

What’s next: MBA and the coalition will: (1) continue to meet with the IRS to express our concerns with the agency’s implementation plans, and (2) will advocate for introduction of a Senate companion bill to H.R. 3335 – and consideration of the House measure – to ensure the IRS follows the original intent of Congress to modernize the system and prevent any future disruptions to the mortgage, consumer, and commercial lending industries.

For more information, please contact Bill Killmer at (202) 557-2736 and/or Rick Hill at (202) 557-2718.

Senate Banking Committee Holds Flood Insurance Hearing

Last Thursday, the Senate Banking Committee held a hearing titled, “Reauthorization of the National Flood Insurance Program (NFIP): Local Perspectives on Challenges and Solutions.” The Committee heard from Mr. Michael Hecht, President & CEO, Greater New Orleans, Inc.; Dr. Daniel Kaniewski, Managing Director, Public Sector, Marsh McLennan; and The Honorable Steve Patterson, Mayor, City of Athens, Ohio. On a bipartisan basis, Senators supported a long-term reauthorization of the National Flood Insurance Program (NFIP) and asked the witnesses for their views on how it can be improved, with a focus on mitigation.

Go deeper: A summary of the hearing can be found here. On November 13, 2023, MBA and a coalition of housing trade groups sent a letter to House and Senate leaders calling for an extension of federal flood insurance program authority to avoid harmful disruptions to the residential and commercial/multifamily real estate markets.

What’s next: MBA will continue to be an active advocate for a long-term NFIP reauthorization (up to five years). The NFIP has been temporarily extended until March 8, 2024, at which time the Congress will need to determine the means of another extension to avoid disrupting real estate transactions due to a lapse in program authority.

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

GSEs Deliver News on Low Downpayment Enhancements, Loan Repurchases at #MBAIMB24

On Wednesday at MBA’s Independent Mortgage Bankers Conference in New Orleans, Laura Escobar, 2024 MBA Vice Chair and President of Lennar Mortgage, moderated a fireside chat with Kevin Kauffman, Vice President, Single-Family Client Engagement, Freddie Mac, and Tim McCallum, Senior Vice President and Head of Single-Family Business Account Management, Fannie Mae.

The discussion centered on several items of importance to IMBs, including the industry’s work with the GSEs on loan repurchase alternatives, housing affordability, climate-related risk, insurance costs and availability and technology.

Why it matters: Freddie Mac’s Kauffman and Fannie Mae’s McCallum used #MBAIMB24 as platform to announce news while on the stage.

Kauffman provided an update on the ongoing, constructive work with MBA, its members, and the Federal Housing Finance Agency (FHFA) to develop more effective alternatives to repurchase demands when dealing with minor loan defects on performing loans. MBA appreciates the effort Freddie Mac has put into its loan purchase pilot program – which Kauffman discussed – to rethink the process and lower the incidence of repurchases on performing loans and improve manufacturing quality. Read this recent MBA NewsLink article on Freddie Mac’s pilot program.

McCallum announced Fannie Mae’s new enhancements to HomeReady, its low downpayment mortgage product to support homeownership opportunities for creditworthy borrowers. The enhancement includes a $2,500 loan-level price adjustment credit for eligible borrowers that can be used for downpayment assistance and closing costs. See Fannie Mae Lender Letter (LL-2024-01) for eligibility and more information.

What’s next: MBA remains engaged with the GSEs and FHFA to ensure high quality underwriting and an appropriate rep and warranty framework and will continue to advocate for sustainable policies and programs that enhance homeownership opportunities in a safe and sustainable manner for all borrowers.

For more information, please contact Pete Mills at (202) 557-2878 or Sasha Hewlett at (202) 557-2805.

House Leaders Consider Next Move on Tax Package; MBA Pushes for Swift Action

The House Ways and Means Committee recently approved the $78 billion “Tax Relief for American Families and Workers Act of 2024” (H.R. 7024), by an overwhelming bipartisan margin of 40 to 3. The package, agreed upon via negotiations between House Ways and Means Chairman Jason Smith (R-MO) and Senate Finance Committee Chairman Ron Wyden (D-OR), includes important Low Income Housing Tax Credit (LIHTC) program enhancements, and extension of the Research and Development tax credit, a revised Child Tax Credit, disaster relief, tax relief to help facilitate commerce between the U.S. and Taiwan, as well as provisions that favorably address business interest deductibility, small business expensing, and bonus depreciation.

Why it matters: H.R. 7024 restores a LIHTC ceiling increase from 9 percent to 12.5 percent for calendar years 2023 through 2025, thereby allowing states to allocate more credits for affordable housing projects, and temporarily lowers the Private Activity Bond (PAB) threshold test from 50 percent to 30 percent for 4 Percent LIHTC property projects with an issue date before 2026.

What they’re saying: In a press statement ahead of last week’s House markup, President and CEO Broeksmit said, “MBA and its members have long called for enacting tax provisions that address our nation’s housing affordability crisis and the acute shortage of homes for owning and renting. We support this bill, particularly for its meaningful enhancements to the Low-Income Housing Tax Credit (LIHTC) that will produce an estimated 200,000 additional rental units over the next two years.”

Go deeper: Read MBA’s letter in favor of the bill (particularly the LIHTC enhancements). You can also find a letter from a broader housing coalition in support of the bill’s housing provisions that are targeted towards the increased production of affordable rental units nationwide.

What’s next: House leaders have indicated they may bring the bill to a floor vote under expedited procedures the week of January 29. Timing for any Senate action may well hinge on the strength of a House floor vote, despite Smith and Wyden’s desire to have the proposal passed in February to avoid complications during tax filing season.

MBA will continue working with lawmakers on both sides of the aisle during this ongoing tax discussion to seek action on the LIHTC provisions as quickly as possible while continuing to push for other tax changes that can help stem the housing supply and affordability crisis.

For more information, please contact Ethan Saxon at (202) 557-2913, George Rogers at (202) 557-2797, Rachel Kelly at (202) 557-2816 or Bill Killmer at (202) 557-2736.

New Jersey Enacts Broad Data Privacy Bill with GLBA Exemption

New Jersey Governor Murphy recently signed SB 332 – a comprehensive data privacy measure – which exempts financial institutions and affiliates that are subject to the Gramm-Leach-Bliley Act (GLBA). The exemption is consistent with MBA policy and advocacy in support of uniform federal data privacy and security requirements. New Jersey is now the 13th state to enact broad data privacy protections.

Most of the provisions will take effect January 15, 2025.

Why it matters: Recognition of the current federal data protections under the GLBA will ensure that the mortgage industry can continue to process information pursuant to existing guidelines while instituting much-needed regulation in other industries. Without a national standard the cost of compliance for state-by-state patchwork increases costs for consumers and may lead to lower competition in the market.

What’s next: Since 2018, broad data privacy legislation has been gaining traction across the states and this trend is expected to gain momentum. It is important for member companies and state and local association partners to continue to coordinate with MBA to help educate policymakers on the importance of the GLBA exemption to our industry.

For more information, please visit our State Data Protection Issues resource page or contact William Kooper at (202) 557-2737 or Liz Facemire at (202) 557-2870.

Mortgage Call Report Version 6 (MCRV6) Implementation Update

Last Monday, the Conference of State Bank Supervisors (CSBS) will host its biweekly “Office Hours” on MCRV6 implementation. MBA urges members to participate in these office hours to ensure all issues are addressed prior to the April 2024 filing date.

The CSBS has continued to make updates to their FAQs document, provided a list of states who have agreed to use the State Specific Supplemental Form (SSSF), and updated the list states offering a grace period for Q1 2024 MCRV6 filings. All updates can be found on the MCRV6 Resource page. Office hours will remain on Mondays at 1:00pm ET through zoom. To join the Zoom meeting (all sessions), use the following link and ID and Passcode:


Meeting ID: 821 0299 5323

Passcode: 102696

Why it matters: Licensees should be collecting the appropriate MCR data for this new version.

What’s next: MBA and its state partners continue to collaborate in reaching out to state regulators to urge them to offer licensees a grace period or other flexibility for Q1 2024 MCR filings.

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

REGISTER: MBA’s State and Local Workshop on March 18-19

Join us in Washington, D.C. the day before the National Advocacy Conference to collaborate with industry peers on shared challenges and priorities and receive actionable advice to grow your state or local association’s member base.

Why it matters: In today’s challenging market, it’s more important than ever that state and local associations are helping members not just survive, but grow.

What’s next: Register before February 5 and save $100. Take advantage of savings and maximize your impact when you register for both the State and Local Workshop and the National Advocacy Conference.

For more information, please contact Anthony Siller at (202) 557-2944.

REGISTER: MBA’s National Advocacy Conference on March 19-20; Great Speaker Lineup Confirmed

Join us in Washington, D.C. to meet with key policymakers, network with colleagues across the industry, and hear from policy experts on the topline issues impacting the industry.

Confirmed speakers for the conference include: Senate Banking Committee members Jack Reed (D-RI) and Katie Britt (R-AL), House Majority Deputy Whip Guy Reschenthaler (R-PA), key House Financial Services Committee member Brittany Pettersen (D-CO), HUD Chief of Staff Julienne Joseph, and renowned political pundit Charlie cook.

An exclusive reception will be held on Tuesday, March 19, at the National Museum of Women in the Arts. Lend your voice to our efforts and bring your expertise and experiences to the table.

Register before February 5 and save $100. Check out MBA’s group passes pricing.

Why it matters: Your participation at NAC ensures that members of the 118th Congress and the administration understand how proposed legislation affects your employees, your end users, and the communities you (and they) serve.

What’s next: MBA will continue to advocate for issues impacting the real estate finance industry.

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

Upcoming MBA Education Webinars on Critical Industry Issues

MBA Education continues to deliver timely single-family and commercial/multifamily programming that covers the spectrum of challenges, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars – which are complimentary to MBA members:

C-PACE for New Development, Refinance, Renovation, and Rescue – January 30

Transforming Lending Operations: How to Leverage Intelligent Automation – January 30

Revisiting Your Servicing Retained Versus Released Decision – February 15

Private Credit Finance 201: A Deep Dive into Debt Funds and Their Impact to Commercial Real Estate lending – March 6

Making Sense of Multifamily Finance – March 14

Builder’s Risk Insurance: Analysis & Perspectives – March 20

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

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