MBA's biggest legislative priorities this year
April 19, 2023 2:19 PM
The Mortgage Bankers Association is one of largest trade groups representing lenders and servicers. Currently, it advocates on behalf of more than 2,000 companies in the financial services sector.
In recent months, the MBA has worked in tandem with other stakeholders in the mortgage industry to push forward administrative changes at a number of housing agencies. It was involved in supporting the Federal Housing Administration's cut tomortgage insurance premiums and championed recently passed legislation that streamlines appraisals for the Department of Veterans Affairs.
Some of the group's members gathered for its annual advocacy conference on Capitol Hill Tuesday and Wednesday to discuss biggest legislative priorities for the months ahead, which are the following:
In recent months, the MBA has worked in tandem with other stakeholders in the mortgage industry to push forward administrative changes at a number of housing agencies. It was involved in supporting the Federal Housing Administration's cut to
Some of the group's members gathered for its annual advocacy conference on Capitol Hill Tuesday and Wednesday to discuss biggest legislative priorities for the months ahead, which are the following:
Nationwide implementation of Remote Online Notarization
Legislation to authorize recognition and acceptance of remote online notarizations for mortgage closings and other official documentation across state lines made its way through the House of Representatives in early March . Members of the MBA are currently lobbying for the Senate iteration of the bill to be introduced and swiftly passed. RON has been allowed so far in 43 states and the District of Columbia.
Reform for trigger leads
The trade group wants unwanted solicitations to borrowers to be reigned in. In its residential mortgage briefing book passed out to members Tuesday, the MBA noted that many entities can buy trigger leads as soon as a customer applies for a mortgage and proceed to "bombard" said applicants with hundreds of calls.
Members were urged to educate policymakers on the potential consumer harm related to trigger leads and how companies misrepresent themselves thus confusing or deceiving borrowers. On Tuesday, such legislation,H.R.2656, was introduced in the House and the MBA has vowed to work with lawmakers to stop "unwanted harassment."
Members were urged to educate policymakers on the potential consumer harm related to trigger leads and how companies misrepresent themselves thus confusing or deceiving borrowers. On Tuesday, such legislation,
Changes to FHFA’s loan level price adjustments
The Mortgage Bankers Association is concerned with the Federal Housing Finance Agency's announced changes to the government-sponsored enterprises loan-level price adjustments .
Specifically, it has qualms pertaining to the addition of an LLPA with a substantial debt-to-income (DTI) ratio component. It argues that the DTI-based LLPA is "unworkable" and that these changes will impose new operational costs on lenders that will ultimately be borne by every borrower.
For now theFHFA has paused the implementation of its debt-to-income pricing change for mortgages. Nonetheless, the MBA is urging its members to brief policymakers on how these changes can negatively impact the mortgage industry.
Specifically, it has qualms pertaining to the addition of an LLPA with a substantial debt-to-income (DTI) ratio component. It argues that the DTI-based LLPA is "unworkable" and that these changes will impose new operational costs on lenders that will ultimately be borne by every borrower.
For now the
Require CFPB to set clear guidelines for rulemaking
The MBA wants the Consumer Financial Protection Bureau to have more clear and consistent policies in place when enacting rules. Specifically, the trade group wants the watchdog to give companies in the financial services industry the opportunity to provide input on proposed rules and regulations.
Bob Broeksmit, CEO of the MBA, also touched uponcurrent challenges to the CFPB's funding structure.
"If the bureau is found unconstitutional the remedy would be to have the CFPB's director serve at the pleasure of the president and that would bring accountability," said Broeksmit during the MBA's advocacy conference Tuesday. "It sounds weird for me to be advocating the continuation of the bureau, but the problem is that if the CFPB's mortgage rules would go away, there would be chaos."
Bob Broeksmit, CEO of the MBA, also touched upon
"If the bureau is found unconstitutional the remedy would be to have the CFPB's director serve at the pleasure of the president and that would bring accountability," said Broeksmit during the MBA's advocacy conference Tuesday. "It sounds weird for me to be advocating the continuation of the bureau, but the problem is that if the CFPB's mortgage rules would go away, there would be chaos."
Urging policymakers to be mindful of changes to False Claims Act
The trade group wants policymakers to be aware that pending legislative changes to the False Claims Act could create disruptions in the government lending marketplace.
In the past decade, banks have pointed to stringent FCA enforcement as the main contributor of why many chose to exit FHA lending.
The MBA warns that if changes are enacted to the rule, and one such bill haspassed the Senate in March, more lenders will choose to discontinue their participation in FHA lending.
In the past decade, banks have pointed to stringent FCA enforcement as the main contributor of why many chose to exit FHA lending.
The MBA warns that if changes are enacted to the rule, and one such bill has
Advocate for housing agencies to implement new technologies for appraisals
The MBA would like to see federal housing agencies, such as the FHA, VA and the government-sponsored enterprises, leverage emerging technologies to make appraisals more accurate, unbiased and cheaper for borrowers.
The trade group is advocating for the use ofAutomated Valuation Models (AVMs), hybrid appraisals, desktop appraisals and appraisal waivers.
The trade group is advocating for the use of
