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.

In April, the 11th Circuit Court rendered a decision that has potential servicing implications.  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, and MBA submitted comments supporting the CFPB's proposed rule to delay implementation of the Fair Debt Collection Practices Act final rules.

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 residential sector.
 

1. Significant 11th Circuit Court Decision Has Potential Servicing Implications 

In late April, the 11th Circuit Court - which covers Florida, Georgia, and Alabama - ruled in Hunstein v. Preferred Collection that using a vendor to generate a letter to a debtor violated the Fair Debt Collection Practices Act's (FDCPA) prohibition on disclosing a consumer's debt to a third party. The decision articulates no limiting principle on liability beyond the information sharing authorized by the statute and suggests that all third-party relationships may be implicated by this decision.  

• Why it matters: This is the first opinion that touches on this issue. Its conclusion that the FDCPA bars the sharing of information between those subject to FDCPA, and typical vendors used in the ordinary course of loan servicing business, has concerning ramifications. With millions of borrowers exiting COVID-19-related forbearance in the coming months, the decision is particularly ill-timed and could impair the ability of servicers to work effectively with trusted intermediaries to provide successful loss mitigation options for borrowers.
   
• What's next: MBA will explore all options to ensure that this decision does not harm servicers or consumers - for instance, by curtailing the usage of third-party nonprofit housing counselors or complicating servicing transfers. 
   

2. MBA Submits Comments on CFPB's Proposed Delay of FDCPA 

Last week, MBA submitted comments supporting the Consumer Financial Protection Bureau's (CFPB) proposed rule to delay the implementation of the Fair Debt Collection Practices Act final rules by 60 days, from November 30, 2021, to January 29, 2022. While MBA supports the CFPB's actions, the comment letter argues for a longer proposed delay period to provide sufficient time for servicers to interpret and implement the needed changes in order to comply.

• Why it matters: As the industry continues to deal with the ongoing effects of the COVID-19 pandemic, servicer resources have been focused on quickly implementing numerous complex policies to better assist borrowers; because of this, more time is needed to change internal policies and controls.
   
• What's next: The CFPB will review the public comments to determine if and how long to delay implementation.
   

3. 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.
   

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 premiere advocacy conference played host to a slate of congressional speakers, including Senate Banking Committee (SBC) Chairman Sen. Sherrod Brown (D-OH) and ranking member Pat Toomey (R-PA); junior SBC member Raphael Warnock (D-GA); and House Financial Services Committee (HFSC) members Reps. Steve Stivers (R-OH), Anthony Gonzalez (R-OH); and Problem Solvers Caucus Vice Chairman Rep. Dean Phillips (D-MN). Content also included a point-counterpoint discussion with former HFSC Chairs Barney Frank (D-MA) and Jeb Hensarling (R-TX).

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.