MBA Advocacy Update: MBA, Industry Groups Launch CONVERGENCE Collaborative; Illinois CRA Exam Fees Progress; more
MBA, 13 Mortgage Industry Companies and Trade Groups Launch CONVERGENCE Collaborative to Address the Racial Homeownership Gap
On Monday, MBA and 13 leading industry stakeholders announced the formation of the CONVERGENCE Collaborative, a coordinated effort to identify and develop solutions to help close the racial homeownership gap.
Over the next three years, the CONVERGENCE Collaborative will deploy more than $1 million annually to build on the existing network of location-based CONVERGENCE sites focused on expanding minority homeownership.
What they are saying: “The barriers to minority homeownership require a collective effort. In recognition of this challenge, we believe the approach embodied in the CONVERGENCE framework can have a greater impact with this new industry partnership,” said MBA President and CO Bob Broeksmit, CMB. “By working together, we can produce more and faster results that will reduce the racial homeownership gap.”
Go deeper: MBA will be joined in the CONVERGENCE Collaborative by the American Land Title Association (ALTA), DHI Mortgage, Fannie Mae, Fifth Third Bank, Freddie Mac, Lennar Mortgage, National Association of Realtors ® (NAR), Navy Federal Credit Union, Pulte Financial Services, Taylor Morrison Home Funding, U.S. Mortgage Insurers (USMI), and Wells Fargo Home Lending.
Each stakeholder organization in the CONVERGENCE Collaborative will have an equal say in key strategic and operational decisions, with the goal of leveraging their collective resources, expertise, and insights to have a more significant impact.
For more information, please contact Wendy Penn at (202) 557-2782.
Illinois Regulator Narrows Scope, Proposes Second Notice of Proposed Rules on IMB CRA Exam Fees
On Wednesday and in response to MBA’s recent comments, the Illinois Department of Financial and Professional Regulation (IDFPR) issued its second notice of proposed rules to revise the fee structure for Illinois Community Reinvestment (ILCRA) exams of independent mortgage banks (IMBs) that are scheduled to commence in 2025.
In August, IDFFPR proposed replacing an ILCRA examination fee with an annual fee on each Illinois-licensed IMB based on their total loan volume regardless of whether an actual exam is performed. This annual assessment would cost roughly $22,000 a year for the largest IMBs.
Why it matters: MBA pointed out that it was highly inappropriate to base this fee on total national loan volume and that IDFPR must narrow that scope to only loans on Illinois properties.
The IDFPR has agreed and issued this important change, which will save MBA members thousands of dollars in annual fees. However, IDFPR has not delayed its proposed payment date of November 1, 2024, for 2025 fees. This payment date is now complicated by the fact that the legislative committee responsible for approving the proposed fee structure – the Illinois Joint Committee on Regulation (JCAR) – will not convene until later in November.
What’s next: MBA will continue to work with its member companies and the Illinois MBA to advocate for industry interests ahead of the November 12th JCAR meeting.
For more information, please visit the MBA State CRA Resource Center or contact William Kooper (202) 557-2737 or Liz Facemire (202) 557-2870.
MBA and California MBA to Host Free Webinar on October 15th to Urge Opposition to Rent Control Ballot Initiative
Tuesday, October 15 at 4:00 PM Eastern/1:00 PM Pacific, MBA and the California MBA will hold a free webinar (open to all MAA members – whether or not you live in California) in support of their joint “No for Me on Prop 33” campaign to urge members to vote against California’s Proposition 33 (Prop 33).
California voters have rejected rent control at the ballot twice before and hopefully will do so again.
Why it matters: Prop 33 would repeal the Costa-Hawkins Rental Housing Act and would allow local governments to set residential rental rates when a unit becomes vacant – actions which will harm the multifamily real estate market and housing affordability. Repealing Costa-Hawkins would create a patchwork of state and local price control laws that would make lending more costly and negatively impact affordable credit availability throughout the state.
What’s next: The webinar will provide more information about “No for Me on Prop 33” campaign, the ballot process in California, and explain why rent control fails to achieve its stated policy objectives and actually negatively impacts pricing and availability. Register for the free webinar here and encourage industry colleagues to participant – and vote against Prop 33.
For more information, please review this issue brief and contact William Kooper (202) 557-2737 or Jamey Lynch (202) 557-2818.
Upcoming MBA Education Webinars on Critical Industry Issues
MBA Education continues to deliver timely single-family 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:
• Understanding the CFPB’s Non-Bank Registry – Oct. 16
• Mastering MSR Valuations in a Shifting Marketplace – Nov. 13
• From Mortgage Eligibility to Affordability: Adapting Lending Strategies to Market Conditions – November 19
• Transition Climate Risks: From Initial Assessment to Mitigation – November 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.
