MBA Advocacy Update: Federal Spending Package Signed into Law; Real Estate Commission Lawsuit Settlement Update
Federal Funding Bill Signed Into Law
On Saturday, President Biden signed a $1.2 trillion funding bill into law, avoiding a partial government shutdown.
CNN reported the spending package funds the federal agencies that were not affected by the last spending agreement, including the Labor, Health and Human Services, Defense, Education and State departments.
MBA is tracking the budget negotiations and will keep you updated.
NAR Commission Lawsuit Settlement Update
The National Association of Realtors (NAR) agreed to settle a series of lawsuits by paying $418 million in damages and eliminating its rules on “cooperative” commissions. Following last week’s announcement of a proposed settlement, MBA has prepared a summary of the settlement that covers:
• the scope of the settlement,
• the changes in real estate agent compensation practice it requires,
• the potential changes in how buyers, sellers and their respective agents’ contract and get compensated, and;
• the possible implications for the financing transaction, and how lenders engage with their Realtor® referral sources.
Why it matters: If approved, changes will likely go into effect mid-July 2024. The impact on the home sales process and the mortgage industry is likely to evolve, with new approaches to the negotiation and payment of buyer agent commissions. As new business models emerge in the real estate brokerage space, MBA’s focus will be on helping our members adapt to these developments, and ensuring that the changes adhere to core principles that ensure buyers that need representation have access to it, that buyers can negotiate over who pays for that representation, and the new models do not disrupt the home financing process and make the experience worse for homebuyers and home sellers.
What’s next: Well before the settlement announcement, MBA has been in discussions with NAR, the GSEs, Federal Housing Finance Agency (FHFA), Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) to identify the likely permutations and the best way forward. This challenge is the focus of Bob Broeksmit’s blog. Additionally, in the coming days, we will release a recorded webinar to help MBA members explain to their LOs what’s in the settlement and what it may mean for them in the months ahead.
• It will be important for members to help MBA track and understand how the market is evolving so we can hold market participants (and regulators, if necessary) to core principles that make sense for sellers, buyers, and lenders.
For more information, please contact Pete Mills at (202) 557-2878 or Justin Wiseman at (202) 557- 2854.
MBA’s Fratantoni Testifies Before Key House Housing Subcommittee on Homebuyer Characteristics, Challenges
On Wednesday afternoon, MBA Chief Economist Mike Fratantoni, Ph.D., delivered testimony before the Housing and Insurance Subcommittee of the House Financial Services Committee at a hearing titled “The Characteristics and Challenges of Today’s Homebuyers.”
Why it matters: Fratantoni reviewed current data on various aspects of the mortgage market with the subcommittee members, focusing on homebuyer characteristics, the range of loan products in today’s market, available sources of financing, and obstacles that housing consumers and lenders are facing. He also examined trends in the rental market, including that for single-family rentals (SFR), housing supply concerns, and regulatory and insurance availability challenges facing our industry.
• Fratantoni fielded questions on a wide range of topics, including: the efficacy of the Low Income Housing Tax Credit (LIHTC) program, inflation and its impact on the housing market, “non-traditional” avenues for the financing/purchasing of housing (e.g., accessory dwelling units), mortgage assumptions, demand-based housing incentives (e.g., downpayment assistance, first time home buyer tax credits, etc.), the essential role of title insurance, small-dollar mortgage lending by banks, the role of institutional investors in the current marketplace, Veterans’ housing, causes of the housing supply shortfall, local zoning strategies, and the rising cost of homeowners’ insurance due to wildfires and other natural disasters.
Go deeper: Mike’s oral and written statements are available here. A summary of the full hearing may be found here. Click here to view a recording of the LIVESTREAM of this hearing.
What’s next: MBA will continue to press Congress to advance legislation aimed at housing affordability and supply challenges – both multifamily and single-family – including many of the targeted bills prioritized during this past week’s MBA National Advocacy Conference.
For more information, please contact Rachel Kelley at (202) 557-2816, Madisyn Rhone at (202) 557-2741, or Mike Fratantoni at (202)-557-2935.
Federal Reserve Maintains Federal Funds Rate
The Federal Reserve in its ongoing efforts to slow inflation decided to hold the federal funds rate to a target range of 5.25-5.50% on Wednesday.
Why it matters: The Federal Open Market Committee (FOMC) emphasized that, “the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans.”
What they are saying: MBA’s Fratantoni noted, “The FOMC held rates unchanged at its March meeting and continued to signal its next move will be a rate cut. The only question is when. Their new projections indicate three cuts for 2024, unchanged from their December projections for 2024, but with one less rate cut expected in 2025. We are forecasting that the first rate cut will be in June, and a total of three rate cuts this year. The committee did not indicate any changes to the pace of quantitative tightening. We continue to expect longer-term rates, including mortgage rates, to decline gradually over the course of this year.”
For more information, please contact Mike Fratantoni at (202) 557-2935.
Hundreds Attend MBA’s National Advocacy Conference 2024 (NAC24)
Last week, more than 350 industry member advocates representing 42 states attended MBA’s NAC24 – meeting with more than 250 individual House and Senate offices.
Why it matters: Those MBA members pressed their lawmakers on policy priorities ranging from mortgage credit trigger leads to tax policy and housing affordability to the need for partial claim authority for the VA Home Loan program. Elected officials and their top aides heard from industry constituents about issues that impact housing consumers and mortgage business operations in their respective states and districts.
Go deeper: Registrants also had the chance to hear congressional, regulatory agency, and political perspectives directly from: House Chief Deputy Whip Guy Reschenthaler (R-PA), Senate Banking Committee members Jack Reed (D-RI) and Katie Britt (R-AL), key House Financial Services Committee members Bill Huizenga (R-MI) and Brittany Pettersen (D-CO), HUD Chief of Staff Julienne Joseph, and renowned political pundit Charlie Cook.
What’s next: Armed with the results of those direct constituent visits made this past week during the NAC, MBA’s lobbyists will continue to advocate for action on industry issues that impact our members’ business operations, customers, and the communities they serve.
For more information, please contact Jamey Lynch, AMP at (202) 557-2818 or Erin Reilly at (202) 557-2751.
Banking Agencies Extend Applicability Date for Certain Provisions of the CRA Final Rule
On Thursday, the Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC) and the Federal Reserve (the Agencies) issued an interagency rule extending the applicability date from April 1, 2024, to January 1, 2026, for certain sections of the joint Community Reinvestment Act (CRA) final rule issued in October 2023. The October 2023 CRA final rule made some significant and MBA-supported changes to the proposed rule, including a two-year extension of the implementation date to give financial institutions adequate time to upgrade their systems and processes to comply with the new rule.
Go deeper: The final rule, however, provided a shorter implementation date of April 1, 2024 for certain provisions, such as when banks would need to delineate their facility-based assessment areas and the requirement to maintain public files that provide specific information relating to their branches, services and performance in helping meet the credit needs of their communities.
Why it matters: This extended implementation date aligns with the implementation date for all other substantive sections in the final rule, which, according to the Agencies, is intended to “promote clarity and consistency”.
What’s next: MBA supports this extended implementation date and will continue to advocate for flexibilities in the rule that reduce compliance burdens and costs on banks, thereby making it less onerous and difficult for them to fulfil their CRA obligations. Comments on the extended applicability date must be received 45 days after the rule is published in the Federal Register.
For more information, please contact Fran Mordi at (202) 557-2860.
MBA Submits Coalition Letter Opposing Troubling TCPA Reforms
Last Monday, MBA and other trades sent a joint letter to Chair Cathy McMorris Rodgers (R-WA) and Ranking Member Frank Pallone (D-NJ) of the House Committee on Energy and Commerce opposing H.R. 7116, the Do Not Disturb Act. The bill, as drafted, would restrict important customer communications by expanding the types of calling and texting equipment covered by the Telephone Consumer Protection Act (TCPA), thereby expanding the level of outreach requiring prior express consent before the call may be placed, and the definition of what constitutes a text message through overbroad and ambiguous new requirements.
Why it matters: MBA has previously weighed in on these TCPA-related issues. MBA members often provide important, sometimes critical, information to their customers through voice calls and text messages. These include suspicious activity alerts, notices of data breaches, past-due alerts, multifactor authentication texts, and notices of payments due. Consumers are harmed when they do not receive these time-sensitive communications from legitimate businesses.
Go deeper: H.R. 7116 could jeopardize such timely and important communications. The bill would also undo the Supreme Court’s Facebook, Inc. v. Duguid decision – a favorable ruling in which MBA submitted an amicus brief – and would enable the class action plaintiff’s bar to bring an onslaught of TCPA cases.
What’s next: MBA will continue to monitor any movement on H.R. 7116 and provide updates accordingly.
For more information, please contact Alisha Sears at (202) 557-2930, Rachel Kelley at (202) 557-2816, or Madisyn Rhone at (202) 557-2741.
Senate Finance Committee Holds Hearing on President’s FY 2025 Budget
On Thursday, the Senate Finance Committee held a hearing on the President’s Fiscal Year 2025 budget proposal with testimony from Treasury Secretary Janet Yellen.
Why it matters: Several Senators spoke in support of H.R. 7024, the Tax Relief for American Families and Workers Act of 2024, which has overwhelmingly passed the House and includes an expansion of the LIHTC program. Senator Ben Cardin (D-MD) also highlighted that the President’s FY25 budget includes support for the MBA-endorsed Neighborhood Homes Investment Act to expand single-family housing supply.
What’s next: Despite opposition from several key Senate Republicans, Senate Majority Leader Chuck Schumer (D-NY) may schedule a procedural vote on H.R. 7024 in April.
For more information, please contact Ethan Saxon at (202) 557-2913 or George Rogers at (202) 557-2797.
CSBS Responds to Comments on Proposed Mortgage Business-Specific Requirements
On Tuesday, the Conference of State Bank Supervisors (CSBS) responded to comments on their proposed mortgage business-specific requirements, as part of efforts to modernize and standardize the NMLS system. The proposal included requirements around cyber security breach reporting, definitions for start-up companies with differences in reporting requirements and point of contact changes to account for third-party providers.
What they’re saying: MBA submitted comments last May supporting efforts by regulators to seek consistency among state requirements but also cautioned CSBS on certain elements of the proposal that could unnecessarily raise standards in all states.
Why it matters: CSBS has been working towards modernizing the NMLS through various proposals, and MBA will continue to caution them to avoid any changes that unintentionally create new regulatory requirements through system changes, rather than through appropriate state law changes or rulemakings.
What’s next: MBA will follow developments and will continue its ongoing conversations with CSBS, advocating for sufficient time between roll out and full implementation.
For more information, please contact William Kooper (202) 557-2737 or Liz Facemire (202) 557-2870.
MBA State and Local Workshop Provides Empowerment Tools to Partner Associations
This week, state and local real estate finance association leaders from more than 30 associations traveled to Washington D.C. to learn from each other and share operational best practices at MBA’s State and Local Workshop. Attendees engaged in panel sessions and open discussion on strategies to enhance their advocacy effectiveness and build member value.
Why it matters: The industry’s 116 independent state and local associations are essential to advancing real estate finance interests that benefit the industry and consumers. Their robust actions have led to an impressive string of recent accomplishments, including remote online notarization (RON) – now passed in 45 states and the District of Columbia, entity-level Gramm-Leach Bliley exemptions from data protection laws in a dozen states, and permanently allowing mortgage loan originators to work from a remote location in nearly 30 states.
What’s next: MBA will continue to convene its partner associations to carry on the exchange of ideas and is already surveying this year’s participants for their feedback to begin planning next year’s Workshop on April 7-8, 2025.
For more information, please contact William Kooper (202) 557-2737 or Anthony Siller (202) 557-2944.
[VIDEO]: mPower Moments: Forging New Paths with Nina Tassler and Geena Davis
mPower Founder Marcia M. Davies sits down with Nina Tassler, Advisor and Former Chairman, CBS Entertainment and Managing Partner of PatMa Productions, and Geena Davis, an award-winning actress and Founder of the Geena Davis Institute for Gender in Media, for an inspiring conversation on forging new career paths and opportunities for women.
Go deeper: During the interview, Tassler and Davis discussed the significant impact of Davis’ organization on the entertainment industry and how it has improved its efforts to provide more opportunities for women in media. They also discuss their decades-long friendship and how they have supported and advocated for each other while on different career tracks.
What’s next: To watch more mPower Moments, click here.
For more information, please contact Marcia Davies at (202) 557-2707.
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:
• The Intersection of Pricing Concessions and Fair Lending – April 4
• Mastering Compliance, Efficiency, and Successful Adoption with Consumer Permission Platforms – April 11
• Rethink Everything: You “Know” To Be A Next Gen Loan Officer – A Deeper Dive With the Writers & Experts Webinar Series: Social Media – April 17
• Climate-Change Disclosure Rules and Impact on Mortgage Lending – April 18
• Basics of Commercial Loan Closing and Loan Documentation – May 9
• Introduction to Commercial Mortgage-Backed Securities – May 23
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.
