The Russian invasion of Ukraine and high gas prices are dominating the political discussion on Capitol Hill, continuing to complicate Democrats' efforts to revive their domestic agenda.
As of this writing, the President's signature Build Back Better Act (BBBA) remains at an impasse, with key Senate Democratic moderates (e.g., Joe Manchin (D-WV) and Kyrsten Sinema (D-AZ)) and progressives at odds over the size and scope of a final bill. For months, MBA engaged in advocacy tied to specific real estate finance-related provisions prioritized by MBA's Board of Directors' appointed Tax Task Force, including proposals designed to expand minority homeownership opportunities and increase affordable housing supply.
With the BBBA's future uncertain, Senator Manchin has outlined policies that he could support in a potential filibuster-proof "reconciliation" package, which include climate, clean energy, and health care provisions, along with a smaller package of tax "pay-fors." Majority Leader Chuck Schumer (D-NY) has noted that Senate committees will hold new hearings and markups on several proposals in April with the potential of having a revised bill as early as May.
Despite the politically charged atmosphere, Congress advanced its $1.5 trillion Fiscal Year (FY) 2022 "omnibus" appropriations bill earlier this month, which included robust funding for the U.S. Department of Housing and Urban Development (HUD) - and several wins for the industry, including reauthorization of the National Flood Insurance Program (NFIP) and directed report language for HUD to address the recent increased volume in FHA multifamily housing. Additionally, the bill included the MBA-supported Adjustable Interest Rate (LIBOR) Act of 2021, which provides clear guidance and a consistent federal standard for determining a replacement benchmark rate for LIBOR, including for tough legacy contracts.
Later this month, the administration is expected to release the President's FY 2023 budget proposal, a blueprint of agency priorities provided to Congress. In theory, this will allow both the House and Senate to begin this year's work on thirteen different appropriations bills - and a new opportunity for MBA to engage policymakers and key staff on industry priorities throughout this process.
Registration is now open forMBA's National Advocacy Conference(NAC), to be held April 26-27 in Washington, D.C. NAC allows you to connect directly with elected officials in our nation's capital. Your story matters - and you need to share it with key elected officials as they consider - and potentially pass - legislation that affects your business operations. The last two years have been unprecedented for millions of Americans, and the real estate finance industry is no different as we navigate new terrains. NAC gives you the opportunity to share your narrative with key congressional staff and elected decision-makers while networking with your colleagues from all over the industry. Similar to years past, NAC will feature a CREF-track for all Commercial/Multifamily attendees to meet exclusively with key congressional officials and regulators at a location near Capitol Hill. These discussions will cover the issues below in depth - with time for questions and further dialogue. When we work together and combine our voices, we can do great things.Register today!
Given this slew of congressional activity, MBA's ongoing work to protect real estate finance provisions remains critical. Included below are several issue priorities that will be relevant for our Capitol Hill meetings in April.
Commercial real estate is one of the most capital-intensive industries. MBA continues to advocate in Congress that any changes to the tax code must be thought through carefully, as both the industry and policymakers consider how to (a) provide more affordable rental housing; and (b) repurpose COVID-19 properties in transition such as hotels or retail properties. Both tax incentives and structure must complement one another. Tax treatment and incentives to encourage investment - such as 1031 Like-Kind exchanges, the Low-Income Housing Tax Credit (LIHTC), a proposed Middle-Income Housing Tax Credit (MIHTC) and proposed refurbishment credits - are important, but they must be balanced against proper taxation of the industry, including any changes to capital gains or the so-called "step-up" in basis.
2. Environmental, Social, Governance Policies
MBA continues to work with policymakers as they develop climate change and Environmental, Social, Governance (ESG) policies that could have an impact on the commercial and multifamily real estate industry. MBA will advocate for reasonable policy approaches to address the management and disclosure of climate change risk. MBA also will support reasonable approaches to ESG factors that appropriately balance operational burden with the usefulness of the disclosed information. Any development of climate change risk or ESG policies affecting the commercial and multifamily real estate finance industry should recognize the evolving understanding of both climate risk and ESG-related lending and investing.
3. Housing Affordability
Given current economic conditions and inflationary pressures, we must share with House and Senate members (on a bipartisan basis) the importance of addressing the issue of housing affordability. Ask elected officials to advance programs that support rental housing as a vital means for continued economic recovery and bolster and incentivize public-private partnership in low-income housing.
4. Regulatory Clarity
Ask elected officials to call on the CFPB to abide by a consistent framework for providing authoritative written guidance that facilitates efficient compliance, reduces implementation costs, and ensures consistent consumer treatment and not to use enforcement tools for regulatory goals.
MBA Advocacy kicked off 2022 with a strong presence at many of our signature conferences and events including the Independent Mortgage Bankers Conference (Nashville, TN), CREF22 (San Diego, CA), Servicing Solutions (Orlando, FL), and Mid-Winter Housing Finance (Avon, CO). Each conference featured an advocacy reception offering attendees the opportunity to hear directly from MBA leadership and staff about the importance of advocacy and our ongoing industry priorities. Collectively, these receptions resulted in over 500 new or renewed MAA members and more than $240,000 in contributions to MORPAC. Thank you to all our MAA members who attended and contributed - it was great to be together again in person!
MBA Chair Kristy Fercho, and MBA President & CEO, Bob Broeksmit, at the Star Wars themed MBA Advocacy reception in Orlando, FLMBA Advocacy's activation area at CREF22MBA Advocacy's reception at CREF22 in San Diego, CAMBA President & CEO, Bob Broeksmit, speaks to the importance of MBA Advocacy programs at the Servicing Solutions Conference
MBA Presence on Capitol Hill
Since early 2020, in addition to the association's office in downtown Washington, DC, MBA has leased an office space on Capitol Hill. Located on the Senate side of the Capitol complex, the MBA Townhouse has provided our industry with increased opportunities to connect with elected officials and key congressional staffers through meetings and events. To date, MBA has hosted over 40 political events with a bipartisan group of House and Senate members. The proximity to Congress and newfound familiarity of the Townhouse as a political gathering spot has further increased MBA's ability to advance our policy priorities.
Congresswoman Kim Schrier (D-WA) with Ethan Saxon, MBA's AVP of Legislative Affairs (lead Senate Democrat)Senator Bill Hagerty (R-TN) with Tallman Johnson, MBA's AVP of Legislative Affairs (lead Senate Republican)
In early March, MBA's Political Action Committee (MORPAC) reached the highwater mark of $2 million raised, continuing a record-setting pace. This figure includes donations from 1,288 new individuals contributing over $750,000, making MORPAC a true grassroots PAC and a major vehicle for the real estate finance industry's voice to be heard on Capitol Hill. Importantly, we are in a strong position as we approach the end of the first quarter of 2022 and on track to reach our ambitious fundraising goal of $3 million for the election cycle.
Thus far in the 2022 election cycle, MORPAC has disbursed roughly $2 million to candidates, party committees, and leadership PACs (while maintaining a strong level of cash on hand). MORPAC is within the "top 10" among trade association PACs in contributions to candidates, based on the Federal Election Commission's (FEC) reporting. Moreover, MORPAC celebrated its 50th anniversary in 2021. We will continue individual celebrations throughout the rest of the 2022 cycle with special events and fundraisers to highlight this milestone.
Save the Date: MORPAC Action Week will be held June 21-27. Please join MBA member companies and participate in this industry-wide event designed to help strengthen MORPAC.
To learn more about MORPAC, please contact Jamey Lynch jlynch@mba.org today.
MORPAC Speakers Series
On January 13, industry advocates participated in a MORPAC Speaker Series event with the Democratic Senatorial Campaign Committee (DSCC) Chair, Senator Gary Peters (D-MI), and then again on March 16 with Congressman Roger Williams (R-TX). Both the Senator and Congressman provided updates on the pace of debate on Capitol Hill (and the 2022 elections) and answered questions ranging from updates on tax policy, contested and open Senate seats, Texas primary results, FHA's Multifamily Accelerated Processing (MAP) program, Section 1071 in the Dodd Frank Act, and capital requirements impacting the treatment of mortgage servicing assets. The MORPAC Speaker Series is a donor benefit program, which features a slate of bipartisan political speakers, including Members of Congress and key staff at national party committees, to provide our advocates with timely updates from Capitol Hill and election outlooks from key races across the country.
Rep. Roger Williams (R-TX) discusses key policy priorities with MBA advocates Senator Gary Peters (D-MI) with Owen Lee, CEO of Success Mortgage Partners
MBA's National Advocacy Conference (NAC) is once again back in person April 26-27 in Washington, D.C. All D.C. Covid restrictions and masks mandates have been lifted as of March 1st - just in time for NAC and the beautiful cherry blossoms! NAC is the premier advocacy event designed to galvanize MBA's members and demonstrate to policymakers the strength of our industry's unified voice. It is critically important our industry remains engaged on all fronts - and we need you to advocate for key policy positions that will positively impact your businesses. NAC's in-person meetings with policymakers are critical to MBA's advocacy efforts, as you add a name, face, and personal story to complex issues, making them relatable to elected officials, many of whom have no background or education in our industry.
Confirmed NAC speakers include Senate Banking, Housing, and Urban Affairs Chairman Sherrod Brown (D-OH), National Republican Congressional Committee (NRCC) Chairman and House Financial Services Committee member Tom Emmer (R-MN), featured luncheon speaker Margaret Brennan, Moderator of CBS News' Face the Nation and CBS News' Chief Foreign Affairs Correspondent, along with several other elected officials who have been invited. We'll cap off a great day on Tuesday, April 26 with a reception for all attendees on Pennsylvania Avenue at the iconic National Archives with a host of elected officials and their key staffers in attendance. Then attendees will hit the Hill on Wednesday, April 27, with in person meetings on or near by Capitol Hill!Register today!
MAA Action Week
2022 MAA Action Week will be held the week of May 9-13! This national, industry-wide campaign unites real estate finance professionals to become more engaged in political advocacy. Now more than ever it is imperative that we maintain a strong, unified voice in Washington, D.C., and state capitals across the country.
Throughout MAA Action Week, companies and organizations will utilize MBA-provided materials to encourage industry professionals to engage in direct advocacy throughout the year with calls to action and in person meetings with elected officials. Already nearly 35 companies and organizations have agreed to run campaigns. If you are interested in learning more about running a MAA campaign, please contact Rosie Sheehan at (202) 557-2933.
MBA Advocacy "Roadshows"
Save the Date: MBA's next Advocacy "Roadshow" will take place on Friday, April 1, from 9:30-11:00AM EDT in Miami, FL, at the Coral Reef Yacht Club. Members of MBA's senior management team and Legislative & Political Affairs staff will provide an update on current legislative and regulatory issues impacting MBA members and their businesses. Attendees will also hear best practices for running company campaigns - the most effective way to expand our grassroots network of advocates. This is a great opportunity to learn how to get your employees involved in the political process and continue advocating for the real estate finance industry in the future. Stay tuned for additional upcoming events near you, including a roadshow in Southern California in June and North Texas in November (following the 2022 midterm elections). If you would like to host or attend a future roadshow event, please email morpac@mba.org.
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