Last Friday’s closing of the Silicon Valley Bank (SVB) and Signature Bank by state and federal regulators kicked off high level discussions in Washington, D.C., about next steps. While any proposed legislative solution will prove elusive in a divided Congress, these events will affect the agenda on Capitol Hill in the coming months, undoubtedly leading to high-profile congressional hearings and regulatory proposals targeting bank safety and soundness, depository protections – and likely nonbank financial institutions as well.
As the 118th Congress comes into form, targeted opportunities should exist to encourage lawmakers to review – and possibly pass – policies beneficial to the industry, such as reauthorization of the National Flood Insurance Program (NFIP) and legislative efforts to support affordable housing production (e.g., housing-related tax credits). MBA staff will also continue pushing for congressional oversight on issues such as financing multifamily and residential healthcare properties through the Federal Housing Administration (FHA) – with our antennae raised on topics such as enhanced HMDA and small business reporting requirements, and reasonable policy approaches to address the management and disclosure of climate change risks (think “ESG”).
The Treasury Department has begun taking special measures to continue meeting federal debt obligations as the U.S. has bumped up against its statutory borrowing limit, kicking off a potentially lengthy and difficult debate in Congress. These “extraordinary” accounting maneuvers give the administration and lawmakers several months to negotiate legislation either raising or suspending the debt limit, though Treasury Secretary Janet Yellen has said there is “considerable uncertainty” about how long those measures can last. MBA – and our real estate coalition partners – will undoubtedly be urged to weigh in on the debate as it matures.
Given this slew of activity, MBA's ongoing work to protect real estate finance provisions remains critical. Looking ahead, MBA’s Mortgage Action Alliance (MAA) will remain essential to our robust efforts aiming to impact policy. The announcement of proposals will quickly begin to emerge in the new Congress in the form of legislative and regulatory policy items where YOU will have an opportunity to have your voice heard.
1. MBA Secures Key Wins in End-of-Year FY 2023 Omnibus Appropriations bill
MBA secured inclusion of multiple legislative initiatives in the Fiscal Year (FY) 2023 “omnibus” appropriations package fashioned during the “lame duck” session late last year. The legislation, which funds the federal government through September 2023, boosts agency budgets across the board and includes $858 billion for the military, more than $772 billion for domestic programs, approximately $45 billion in Ukraine aid, and nearly $40 billion in disaster relief.
The $1.7 trillion FY2023 package, as enacted, contained several MBA-supported provisions, such as increased funding for FHA technology upgrades, reauthorization of the National Flood Insurance Program (NFIP), increased funding for Ginnie Mae administrative expenses, language to resolve delays in FHA multifamily pipeline funding, and grants that encourage localities to remove legal and regulatory barriers that impede new construction.
2. MBA Issues MAA Call to Action Urging HUD to Provide Greater Flexibility for FHA Multifamily Insurance Programs
In February, MBA’s grassroots advocacy arm issued a Call to Action asking members to contact their U.S. Senators and Representatives and urge them to weigh in with authorizers and appropriators to help spur more policy flexibility within the Federal Housing Administration’s (FHA) multifamily insurance programs.
While the Biden Administration is calling for significant increases in housing supply, FHA’s industry partners are facing growing construction and labor costs, supply chain issues, and rising interest rates. The Multifamily Accelerated Processing (MAP) program at the Department of Housing and Urban Development (HUD) is critical to supporting the creation of safe, decent, and affordable rental housing. HUD must work more effectively with lenders to ensure the continued production of multifamily housing units. MBA continues to have an open dialogue with congressional leaders to encourage immediate oversight and request briefings from HUD to help accelerate the creation of safe, quality housing through the implementation of these suggested changes.
Last week, the Biden Administration released its Fiscal Year 2024 (FY24) budget proposal. The Budget requests $73.3 billion in discretionary budget authority for the Department of Housing and Urban Development (HUD), a 1.6 percent increase from the 2023 enacted level. It also includes an increase to the allocation of the Low-Income Housing Tax Credit (LIHTC) that states receive as well as a reduction in the private activity bond financing requirement to enable credits to facilitate more units of affordable housing. The budget also requests $13 billion in resources to help tenants avoid eviction. On the tax policy front, the budget proposes increasing the corporate tax rate to 28 percent, establishing a 25 percent minimum tax on those with wealth exceeding $100 million, and establishing limits on tax deferral for 1031 “like-kind” exchanges.
Each year, the President’s budget request provides a blueprint for the administration’s priorities as Congress kicks off its appropriations process for the 2024 fiscal year. The Biden vision isn’t expected to become law but is an opening salvo in tax and spending talks with Republicans. MBA staff will provide a more in-depth analysis as these are released and circulate a report on items most relevant for MBA members.
MBA’s National Advocacy Conference (NAC) will be held April 18-19 in Washington, D.C. 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 vitally important our industry remains engaged on all fronts and we need you to advocate for reasonable changes to the regulations and laws that are impacting your business operations and ability to serve your customers. In-person meetings with lawmakers are critical to MBA’s advocacy efforts, as you add a name, face, and personal story to complex issues, making them relatable to Members of Congress, many of whom have no background or education regarding our industry.
During the conference, we will hear directly from elected officials and be briefed on our industry’s policy priorities. We’ll cap off a great day on Tuesday, April 18, with a reception for all attendees at the iconic Smithsonian National Museum of African American History and Culture with House and Senate members – and many of their key staffers – also in attendance. Then NAC attendees will hit the Hill on Wednesday, April 19, and hold hundreds of meetings in person as part of their state delegation groups. Register today!
Key Multifamily/CREF Topics for MBA’s National Advocacy Conference
Your participation at NAC ensures that a newly formed 118th Congress understands how proposed legislation affects your employees, your end users, and the communities you (and they) serve, on issues such as:
Reinforcing the Importance of FHA Financing for Multifamily and Residential Healthcare Facilities
Advocating for Reasonable Approaches to Climate-related Financial Risk Change and ESG
The Affect of Davis-Bacon Wage Rates on the Cost of Housing
MBA’s Advocacy team kicked off the new year with a strong presence at many of our signature conferences and events, including the Independent Mortgage Bankers Conference (San Diego, CA), CREF23 (San Diego, CA), Servicing Solutions Conference (Orlando, FL), and Mid-Winter Housing Finance Conference (Avon, CO). Each gathering featured a reception offering attendees the opportunity to hear directly from MBA leadership and staff about the importance of our advocacy efforts and our ongoing industry priorities.
MORPAC has had a busy first quarter of 2023, raising nearly $350,000 while working to close the gap as compared to total dollars raised in previous comparable years.
Company Campaigns: We kicked off the year by raising over $50,000 (pledged/collected) from eligible MBA employees during our annual association-wide company campaign. In addition, one of our Commercial/Multifamily MBA member companies, BWE, ran an executive level campaign that raised roughly $20,000. If you, or someone on your team, is willing to run a MORPAC campaign on behalf of your organization, please email morpac@mba.org or call 202-557-2777, and we can schedule a call/Zoom to discuss details.
Conferences: We also hosted several MORPAC events at MBA sponsored conferences, including the Independent Mortgage Bankers (IMB), CREF Convention & Expo, Servicing Solutions Conference & Expo, and MidWinter conferences. A special thanks to all our valued sponsors at these events, including: AmeriHome Mortgage, BWE, Colliers, Gantry, Grandbridge Real Estate Capital, LLC, Mortgage Investors Group, Sagent, and Success Mortgage Partners, Inc.
Second Quarter Outlook: As we look ahead, MORPAC will be hosting a VIP dinner on April 17 prior to the start of the National Advocacy Conference (NAC). We will also be hosting receptions at MBA’s Legal Issues and Regulatory Compliance, Commercial/Multifamily Housing Servicing and Technology (CMST), Secondary and Capital Markets , and Chairman’s Conferences! If you’re interested in learning more about or attending any of these events, please email morpac@mba.org.
Save the Date: 2023MORPAC Action Week! September 18-22 (details to follow)!
During our CREF23 Conference in San Diego, MAA launched a call to action asking both chambers of Congress to urge the House Financial Services and Appropriations Committees and the Senate Banking and Appropriations Committees to conduct immediate oversight and request briefings from HUD regarding the FHA multifamily program. HUD needs to provide greater flexibility in its policies for FHA multifamily mortgage insurance programs.
Your advocacy matters! If you have not acted, please take action NOW.
Tell your Representative HUD should provide greater flexibility for its FHA Multifamily MI Programs
Tell your Senator HUD should provide greater flexibility for its FHA Multifamily MI Programs
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