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 rounds into form, targeted opportunities should exist to encourage lawmakers to review – and possibly pass – policies beneficial to the industry, including the renewed consideration of minimum federal RON standards, VA and USDA home loan program reforms, and needed changes to the flawed implementation of the IRS’s IVES tax transcript system. MBA staff will also continue pushing for congressional oversight on issues such as GSE pricing, with our antennae raised on topics such as potential credit scoring reforms, enhanced HMDA and small business reporting requirements, and unwanted False Claims Act (and related statutory) changes.
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 encourage small-dollar FHA mortgage lending, and increased funding for housing counseling.
2. MBA-Backed VA Appraisal Modernization Legislation Now Public Law 117-308
On December 27, 2022, President Joe Biden signed H.R. 7735, the Improving Access to the VA Home Loan Benefit Act of 2022, into public law (P.L. 117-308). The full Senate had passed the bill by unanimous consent – in the same form by which it passed the full House last fall – just eight days earlier. The enactment of this MBA-endorsed legislation will help to ensure servicemembers, veterans, and their families have access to more affordable, sustainable homeownership opportunities through the Department of Veterans Affairs’ (VA) Home Loan Program.
MBA strongly advocated for this bill and its Senate companion, S. 4208, throughout last year. Those efforts included Mark Jones, MBA’s current Chairman-elect, testifying before the House Veterans’ Affairs Subcommittee on Economic Opportunity on May 18, 2022. After the House passed H.R. 7735 in September, MBA issued a MAA call to action that urged members to contact their senators to pass the legislation. MBA continues to work with the VA, the new Congress, industry members, and other key stakeholders on implementation of this new law (and other policy proposals) in an effort to ensure veterans and their families have access to more affordable, sustainable homeownership opportunities.
3. House Advances Bill to Establish Federal Minimum RON Standards
Last month, the full House of Representatives passed H.R. 1059, the SECURE Notarization Act, by voice vote. The MBA-supported measure complements the 42-state (plus the District of Columbia) remote online notarization (RON) laws by creating a set of minimum federal standards, while allowing individual states the flexibility and freedom to implement their own RON standards. MBA’s MAA issued a Call to Action encouraging members to contact their representatives to voice their support for the bill, with 84% of all House offices contacted ahead of the unanimous/bipartisan vote.
The SECURE Notarization Act has now cleared the full House early in this new session of Congress with the broadest possible bipartisan support, signaling to the Senate there is considerable momentum for the legislation to be considered and debated in the upper chamber. MBA will continue to advocate for the reintroduction of a bipartisan Senate companion SECURE Notarization Act. Once that bill has been formally introduced, MAA will issue a new Call to Action to urge our members to contact their Senators to voice support for – and urge co-sponsorship of – this parallel legislation.
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 Residential/Single Family 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:
The state of the mortgage/real estate market in your state/congressional district
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)!
