MBA’s Actions, Updates Regarding Clarity of OMB Memo             

As of close of business on Jan. 29, the White House has rescinded the Office of Management and Budget memo released Jan. 27 addressing federal funding.

As developments in Washington continue, MBA will keep members informed on the latest news. For more information regarding residential developments, please contact Matt Jones at (202) 557-2933. For more information regarding multifamily developments, please contact Megan Booth at (202) 557-2740.

In case you missed it: MBA’s President and CEO Bob Broeksmit, CMB, released the following statement requesting clarification from federal government agencies on the Office of Management and Budget memo released on Jan. 27:

“The Federal Housing Administration, Department of Veterans Affairs, and Rural Housing Service at the Department of Agriculture must clarify that the Jan. 27 OMB memo calling on federal agencies to temporarily suspend payments for federal grants, loans, insurance and loan guarantees does not apply to the single family and multifamily loan insurance or guarantee programs at their agencies.

Americans are going to the closing table tomorrow and deserve to know that their loan will close on their home purchase. Without this clear assurance that the federal government will insure new loans or pay claims under these programs, there will be severe harm to borrowers and disruption to the mortgage market.”      

Later on Jan. 28, MBA released a breaking advocacy update from Broeksmit highlighting further information. At the time of publication it read:

Thanks to many of you who shared with us your questions and concerns regarding the Office of Management and Budget’s (OMB) memo to federal agencies – released last night – that orders a pause to grants and loans disbursed by the federal government.

We reached out immediately to OMB and federal agencies this morning – and issued a press statement – requesting clear assurance that the directive does not apply to the single family and multifamily loan guarantee programs at the Federal Housing Administration (FHA), Department of Veterans Affairs (VA), and the Rural Housing Service at the Department of Agriculture (USDA).

Following MBA’s urgent requests, FHA and Ginnie Mae just released memos clarifying that OMB’s directive does not apply to single-family federal grants, loans, insurance, and loan guarantees. We will continue to press for clarity from the VA, USDA, and FHA regarding its multifamily lending programs.

Moments ago, a federal judge paused until next week (Feb. 3) the implementation of OMB’s directive. We are monitoring this issue and are continuing to urge the Administration to avoid making any moves that disrupt your ability to serve your customers and the single-family and multifamily mortgage markets.