MBA Advocacy Update: Secretary Fudge Testifies Before HFSC; FSOC SIFI Designation Subcommittee Hearing

HUD Secretary Fudge Testifies at Contentious House Oversight Hearing

On Thursday, Housing and Urban Development Secretary Marcia Fudge appeared before the full House Financial Services Committee at a long-planned oversight hearing for HUD and the Federal Housing Administration (FHA).

Republicans criticized Fudge for a lack of serious attention on her watch to issues impacting homeowners, renters, and the homeless, including HUD’s oversight of its disabled veterans’ program and Public Housing Authorities. Democrats countered that they have worked with Fudge, FHA, and the administration to develop numerous solutions to combat homelessness and the affordable housing crisis.

A full summary of the hearing may be found here.

Why it matters: Including questions suggested by MBA and in keeping with our longstanding advocacy, the committee asked Secretary Fudge about a range of key topics of concern, including the potential for changes to FHA’s single-family “life of loan” mortgage insurance payment policy, the need for changes to FHA’s Assumable Mortgage Rate program (to ensure lenders can process requests), and the potential for FHA to transition (like FHA) to a “bi-merge” credit report system.

She also answered questions on the potential for a near-term government shutdown, the Basel III “endgame” proposal’s possible impact on the mortgage market, the need for more housing tax credits (and other questions regarding barriers to the creation of additional housing supply), FHA’s appraisal and servicing policies, the adoption of energy-efficient building codes, her receptivity to the financing of accessory dwelling units (ADUs), and the ongoing conservatorship of the GSEs.

What’s next: Many of Secretary Fudge’s answers will require written follow-up by HUD to the committee members who asked questions. MBA will continue to work with HUD and our congressional allies to advocate for policy changes that positively impact our members – and their customers.

For more information, please contact Rachel Kelley at (202) 302-1185 or Bill Killmer at (202) 557-2936.

House Financial Services Subcommittee Holds Hearing on FSOC SIFI Framework

Last Wednesday, the House Financial Services Subcommittee on Digital Assets held a hearing titled, “Regulatory Whiplash: Examining the Impact of FSOC’s Ever-Changing Designation Framework on Innovation.”

The hearing featured a panel of witnesses who offered perspectives and recommendations on the Financial Stability Oversight Council’s (FSOC) ability to designate non-bank financial institutions as systemically important under its updated Dodd-Frank Section 113 Systemically Important Financial Institution (SIFI) authority.

Go deeper: Republicans on the panel expressed concerns that the updated guidance would allow FSOC to circumvent Congress’ intent while also stifling innovation. Subcommittee Democrats countered that the updated guidance would allow FSOC to act more quickly to emerging risks. Importantly, the witnesses largely agreed that the designation of non-bank entities is a tool that should be used sparingly. The full hearing summary can be found here.

Why it matters: Overly aggressive application of the framework could expose MBA’s nonbank entities to more stringent regulations based on FSOC’s guidance.

What’s next: MBA will continue to stay engaged with legislators and regulators to continue to monitor any changes to FSOC’s guidance in this area.

For more information, please contact Rachel Kelley at (202) 302-1185 or Bill Killmer at (202) 557-2936.

New Jersey Governor Phil Murphy Signs Community Wealth Preservation Act

Last week, New Jersey Governor Phil Murphy signed A5664, the Community Wealth Preservation Act, which provides a first right of refusal process to certain parties in a foreclosure sale.

Why it matters: MBA and the MBA of New Jersey’s coordinated advocacy with member companies over the last four years to oppose the measure improved the bill’s language. Last year, the bill passed, but advocacy resulted in a conditional veto from the Governor Murphy that echoed MBA and MBA of New Jersey’s raised concerns on the listing price or “upset price” cap at 50% of the debt owed.

Go deeper: Earlier versions of the legislation removed the 50% cap, but still required the listing price be set four weeks in advance without any avenue to adjust, had severe deed restrictions which would have resulted in unmarketable title, allowed first right carry over to a private sale post foreclosure, held financial institutions accountable for the 84-month occupancy requirements, and significantly increased Sheriff’s fees in any sales.

Sustained industry advocacy provided a solution to achieve the Sponsor’s goal without unworkable disruptions to the real estate market entirely.

What’s next: MBA and MBA of New Jersey will continue to advocate for improvements to the program.

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

Mortgage Call Report Version 6 (MCRV6) Implementation Update

The Conference of State Bank Supervisors (CSBS) will resume hosting its biweekly “Office Hours” on MCRV6 implementation. MBA urges members to participate to ensure all issues are addressed prior to the April 2024 filing date. CSBS has recently made updates to its 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 via 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 National Advocacy Conference on March 19-20

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. 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 the NAC ensures that members of Congress 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 with policymakers on the issues that impact 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 – Jan. 30

Transforming Lending Operations: How to Leverage Intelligent Automation – Jan. 30

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.