Bipartisan negotiations on President Biden's infrastructure proposal, which included raising the corporate tax rate as its major payfor, continue to face strong headwinds. With an unofficial deadline for a bipartisan accord on infrastructure approaching next week, negotiators remain approximately $1.5 trillion apart, with severe differences in both size and scope, after more than a month of talks. Discussions are likely to continue into next week, as the Biden Administration signaled it is not ready to end talks and begin the process of moving ahead under the budget reconciliation process with a Democrat-only bill.

Earlier this month, the Senate re-introduced the SECURE Notarization Act, a bipartisan bill that would allow notaries in states without enacted Remote Online Notarization (RON) law to perform RON transactions. In addition, the Senate held two key committee hearings on housing infrastructure and the reauthorization of the National Flood Insurance Program (NFIP).

Looking ahead, MAA will remain essential to our robust efforts aiming to impact policy. The announcement of these proposals will quickly begin to emerge as legislative and regulatory policy items where YOU will have an opportunity to weigh in. 

We will need MAA to be louder and stronger than ever to ensure that Congress does not end up harming, more than helping, our industry with any changes that reduce support for capital formation and investment, or negatively affects consumers, particularly in the commercial, multi-family sector.
 

1. Senate Committee holds hearing on '21st Century Communities: Expanding Opportunity Through Infrastructure Investments'

Last week, the Senate Banking Committee held a hearing to hear testimony from Department of Housing and Urban Development (HUD) Secretary Marcia Fudge and Transportation Secretary Pete Buttigieg on the Biden administration's proposed American Jobs Plan. The hearing exposed partisan disagreement on how infrastructure should be paid for and the size of future federal transit and infrastructure investments. Ranking Member Patrick Toomey (R-PA) opened the hearing with remarks emphasizing the need for Congress to focus on physical infrastructure spending, rather than housing, and outlined the preferred Republican approach of repurposing previously appropriated stimulus money to pay for infrastructure. He said, "[L]et's be clear: Housing is housing. People certainly need housing, but housing is not infrastructure."

Senators Kyrsten Sinema (D-AZ), Steve Daines (R-MT), and Jon Tester (D-MT) each raised concerns regarding affordable housing in rural areas, and Secretary Fudge mentioned a variety of tax measures in her responses - such as the Low-Income Housing Tax Credit (LIHTC) and the Neighborhood Homes Investment Act (NHIA) - in the context of the Biden proposal. Chairman Sherrod Brown (D-OH) asked how HUD can help communities address restrictive zoning and expand access to housing development. Secretary Fudge asked Congress to provide HUD with tools to assist localities as they address zoning challenges. Senator Mark Warner (D-VA) briefly mentioned the need to further help homebuyers build equity and credited much of the existing wealth gap to unequal access to homeownership.

• Why it matters: The hearing highlighted the deep division on the committee over how to pay for the approximately $85 billion in transit funding that the committee has jurisdiction over, as well as the $213 billion in additional housing funding proposed by the Biden administration.
   
• What's next: The committee will seek to authorize multiyear transportation legislation as part of a larger transportation and infrastructure package that will be merged with the highway authorization.

2. Senators Introduce SECURE Notarization Act, a Key Ask During MBA's National Advocacy Conference Hill Day

Immediately following MBA's National Advocacy Conference, Senators Mark Warner (D-VA) and Kevin Cramer (R-ND) introduced S. 1625, the Securing and Enabling Commerce Using Remote and Electronic (SECURE) Notarization Act of 2021, which would allow notaries in states without enacted RON laws to perform RON transactions. Like the bill from the previous Congress, the SECURE Notarization Act of 2021 requires tamper-evident technology in electronic notarizations and provides fraud prevention through the use of multifactor authentication for identity proofing and audiovisual recording of the notarial act. The federal legislation would complement existing state laws, while allowing states the flexibility and freedom to implement their own RON standards. MAA sent out a Call-To-Action (CTA) encouraging Senators to cosponsor and support this important piece of legislation, and to-date 1,738 MAA members sent 3,850 messages to all Senate offices.

• Why it matters: A direct result of MBA's advocacy, the bills' minimum standards for RON are consistent with those provided in the MBA-ALTA model state RON bill and the Mortgage Industry Standards Maintenance Organization (MISMO) RON Standards.
   
• What's next: MBA continues to work with congressional allies toward introduction of a companion bill in the House and to advocate with state governments to promote laws that allow the use of RON in a manner that complies with MBA-developed principles. 
   

3. Senate Banking Committee Discusses Flood Insurance Reauthorization

On Tuesday, the Senate Banking Committee held the first in a series of hearings on reauthorizing the NFIP prior to its expiration of authority on September 30, 2021. Lawmakers were divided on a list of proposed reforms to the program, with senators from flood-prone states resisting certain proposals, citing concerns about premium costs for homeowners. A summary of the hearing may be found here.

• Why it matters: The NFIP allows mortgage lenders, real estate agents, home builders and the rest of the housing industry to close deals on homes in floodplains. Long-term flood insurance reform has eluded Congress for years, resulting in lawmakers passing short-term reauthorizations of the program 16 times since 2017 to keep it operating.
   
• What's next: Tuesday's hearing was the first in four years that the Senate Banking Committee has held on the NFIP. The House Financial Services Committee unanimously passed a five-year reauthorization of the program in 2019 that required disclosure of property-specific risks for homeowners and homebuyers, and updated maps to create new flood zones. The Senate has been unable to reach an agreement yet on long-term changes.
   

MAA Action Weeks Recap

Thank you to everyone who participated in MAA Action Weeks, a national, industrywide campaign aimed at growing MAA and activating real estate finance professionals in key states and congressional districts! This year 80 companies and organizations participated, and through concurrent campaigns, generated 5,900 new MAA sign-ups and 13,400 MAA renewals. This tremendous effort resulted in MAA surpassing our goal of more than 75,000 total active members who stand ready to contact elected officials on key issues impacting our industry. 

If you are interested in learning more about how to run a campaign within your company or organization, or if you would like to request a report of your company's or state's involvement, please contact Rosie Sheehan at rsheehan@mba.org.

MBA's National Advocacy Conference Highlights

May 11-12, 2021 marked MBA's virtual National Advocacy Conference (NAC), which included attendance from over 400 industry advocates across roughly 40 states. The NAC Hill Day once again included a tailored Commercial/Multifamily track. CREF members heard directly from speakers, including House Financial Services Committee member Van Taylor (R-TX); HUD Deputy Assistant Secretary for Multifamily Housing Ethan Handelman; key staff from the offices of Senate Majority Leader Chuck Schumer (D-NY), Sen. Joe Manchin (D-WV); the moderate, pro-business House New Democrat Coalition (NDC); and NDC Chair and senior House Ways and Means Committee member Rep. Suzan DelBene (D-WA).

This conference presented a critical opportunity for industry advocates to hear from - and educate - key congressional leaders and staff about the importance of many urgent and developing issues impacting our members and the economy. If you are interested in learning more about NAC and how to participate in 2022, click here.

MORPAC Action Week

Coming up, June 14-21, 2021 is the fourth annual MORPAC Action Week, dedicated to strengthening the only political action committee that directly represents the interests of the real estate finance industry in our nation's political system. MORPAC raises personal, voluntary contributions from eligible industry professionals to support election efforts of qualified federal candidates whose views and voting records reflect the interests of MBA and its members.

Last year, MORPAC Action Week efforts aided in a record-setting political cycle that raised more than $2.5 million. MBA staff make these campaigns easy by providing companies with all the necessary materials and information to help you launch a successful campaign. If you are interested in learning more about running a company campaign during MORPAC Action Week, please contact Rachel Kelley at rkelley@mba.org. 

mPact's Conversations on Capitol Hill

Join mPact and MBA Advocacy for a virtual event on Wednesday, June 2 from 2:00 - 3:00pm ET to learn more about the current state of play in Washington, D.C. and discuss exactly what these changes mean for key policy priorities affecting the real estate finance industry.

Speakers from MBA's policy, advocacy, and lobbying teams will talk through fast-paced changes and shifting priorities for policymakers such as remote online notarization, housing finance reform, and the industry's approach to potential tax changes. They will also highlight when and how key stakeholders, like members of mPact, can get involved to shape legislation and regulations directly impacting our businesses and customers. (**Note: This event is only open to members of the mPact community.)

To RSVP to this virtual event, click here. If you have any additional questions, please contact Rosie Sheehan at rsheehan@mba.org.