This past month was marked by a slew of activity in Congress, including House and Senate testimony by Fed Chairman Jay Powell, the release of a budget and tax agreement by Senate Democrats, and a key Senate confirmation of Nellie Liang to be Undersecretary for Domestic Finance. Also, the House Committee on Appropriations considered several fiscal year 2022 appropriations bills, including funding for HUD, and prepped the legislation for floor passage as early as this week. MBA's letter to House Appropriators outlining the real estate finance industry's priorities can be found here. 

In mid-July, FHFA announced the removal of the GSEs' 50-basis-point adverse market fee in response to both industry advocacy and improved market conditions. 

A group of Republican and Democratic Senators continue to work expeditiously to salvage a bipartisan infrastructure deal, with pressure intensifying on all side to wrap up negotiations in the coming days, and MBA led an industry coalition letter to Congress urging legislators not to consider using Fannie Mae and Freddie Mac's guarantee fees (g-fees) to help pay for infrastructure priorities. While these efforts continue to test the White House and Congress, the outcome will set the stage for the next debate over President Biden ambitious $3.5 trillion spending package, a strictly partisan pursuit of far-reaching programs and services including child-care, tax breaks and health care. It would be paid for by increasing the corporate tax rate, among other provisions, and the tax rate on Americans earning more than $400,000 a year.

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. MBA Leads Industry Coalition Letter to Senate On G-Fees

Last week, MBA and other housing trades and consumer advocates sent a letter to the U.S. Senate urging negotiators working on the Bipartisan Infrastructure Framework (BIF) to not use GSE guaranty fees ("g-fees") as a source of funding offsets. As the Senate considers the BIF package, the letter emphasized to lawmakers that homeownership must not be used as the nation's "piggybank" to cover the cost of unrelated federal programs. A copy of the letter can be found here.

• Why it matters: G-fees should only be used as originally intended: as a critical risk management tool used to protect against periodic losses that occur in the normal course of GSE operations.
   
• What's next: To compliment MBA's legislative efforts on this matter, MBA members, through a Call-To-Action, are contacting Congress and asking legislators to remove the g-fee provision as a payfor.  In addition, MBA and the housing industry will also use the letter in the upcoming budget reconciliation debate and encourage members of Congress not to use g-fees to offset any non-housing-related funding under consideration.
   

2. MBA Builds on Engagement with New FHFA Leadership

The first month of Sandra Thompson's tenure as Acting Director of the Federal Housing Finance Agency (FHFA) has produced several positive policy shifts with respect to Fannie Mae and Freddie Mac (the GSEs), as well as ongoing engagement with the industry as further potential changes are considered. The elimination of the 50-basis-point adverse market refinance fee and the expanded eligibility of borrowers for Flex Modifications, in particular, are a result of recommendations MBA made to Acting Director Thompson upon her appointment.

• Why it matters: More broadly, these policy shifts are indicative of FHFA leadership that will rebalance efforts to improve affordability and address the racial homeownership gap, while maintaining the safety and soundness of the GSEs.
   
• What's next: MBA anticipates the new FHFA leadership to evaluate several existing policies with respect to the GSEs, including various product limits set forth in the Senior Preferred Stock Purchase Agreements. These limits include those related to second homes and investment properties, loans with multiple risk factors, and the use of the GSEs' cash windows.
   

3. Down Payment Assistance Legislation Introduced in the House

On July 15, House Financial Services Committee (HFSC) Chairwoman Maxine Waters (D-CA) introduced the Downpayment Toward Equity Act of 2021, a proposal designed to help address the U.S. racial wealth and homeownership gaps by providing $100 billion toward down payment and other financial assistance for first-generation homebuyers to purchase their first home. MBA has established a Minority Homeownership Task Force comprised of members of RESBOG and the Affordable Homeownership Advisory Council to identify and address barriers within the home-buying process that contribute to the widening minority homeownership gap. Also, as previously announced, MBA is playing a key role as part of a coalition of industry trade associations and consumer advocacy groups offering policy support for legislative efforts to reduce down payment barriers for first-time, first-generation, and minority homebuyers.

• Why it matters: MBA advocated for and successfully secured the inclusion of language within the bill (as introduced) supporting uniformity in administration of the down payment assistance and granting participating lenders a meaningful safe harbor should borrowers self-attest their first-generation homebuyer status and later be determined ineligible. MBA Chairman Susan Stewart offered a statement of support upon the bill's introduction.
   
• What's next: Chairwoman Waters is pushing for the bill's inclusion (along with other affordable housing provisions) in a broad infrastructure/reconciliation package being negotiated by the White House with congressional leaders. MBA will continue to closely monitor this legislation as it progresses towards a HFSC markup and potential inclusion in a broader package.
   

MAA Call to Action

Monday, MAA launched a call to action asking advocates to contact Congress and urge them to oppose utilizing GSE guarantee fees ("g-fees") as a source of funding offsets in negotiations of the Bipartisan Infrastructure Framework (BIF). Prior to the call to action, MBA had led a coalition letter to lead Senate negotiators that outlined the opposition and subsequent detrimental impacts. Already, nearly 3,000 MAA members have sent over 10,500 messages to all 100 US Senators and 87% of the US House.

A special thank you to the following for leading the way on this issue! Below are the top 5 companies by action takers.

1. Fairway Independent Mortgage Inc. - 1,374
2. New American Funding - 618 
3. DHI Mortgage - 173 
4. Primary Residential Mortgage Inc. - 109 
5. First Heritage Mortgage - 38 

Add your voice TODAY by taking action to contact your elected officials to urge them not to use g-fees as a "pay-for" for either the BIF or the upcoming House/Senate budget resolutions.

Quarterly MAA Webinar

Join us today, Thursday, July 29 from 2:00-3:00pm ET for our free Quarterly MAA Webinar that will feature a legislative briefing on priority issues facing the industry and current MAA calls to action. MBA's Legislative and Political Affairs team will provide updates on how MBA has remained engaged with Congress and the administration, and preview issues that are likely to emerge in the coming months.

This webinar is free to all MAA members using the code: MAA2021. The link to register can be found here.