MBA reassures stakeholders of its influence on Capitol Hill

The head of the Mortgage Bankers Association reassured constituents that the trade group is in communication with government officials and is helping the administration "make sound decisions and develop better approaches to housing and finance policy."

MBA's CEO Bob Broeksmit, speaking at the trade group's advocacy conference in Washington D.C. Tuesday, reiterated that the trade group is "building on [its] legacy of trust to sustain constructive working relationships with government decision makers."

He name dropped ongoing conversations between the MBA and the Department of Housing and Urban Development, the Department of Veterans Affairs and the Federal Housing Finance Agency.

This comes weeks after mortgage industry stakeholders, including those who do consultation for lenders, reported a blackout of information coming from housing agencies since the administration change.

Broeksmit said he expects a number of developments to unfold, including further reductions in the government workforce, the release of the government-sponsored enterprises from conservatorship and the re-introduction of a trigger leads bill. 

"Elon Musk's department of government efficiency is certainly living up to its mission of moving fast and breaking things, while some of the waves of terminations of federal employees were largely based on procedural grounds, we should anticipate [further] staff reductions," Broeksmit said. 

MBA's head said he hopes critical mortgage-related roles at government entities will be retained, noting that the group told HUD Secretary Scott Turner how vital the Federal Housing Administration and Ginnie Mae programs are.

He also highlighted the trade groups willingness "to work with policy makers in the Trump administration to ensure that the transition to close the conservatorship era of the GSEs is handled with precision and to minimize market disruption and uncertainty."

Broeksmit said a trigger leads bill is likely to be introduced sometime in mid-April.

Additionally, he commented on the unfolding situation at the Consumer Financial Protection Bureau, noting that a watchdog should exist — to a degree — to monitor the industry.

"The mortgage industry can't function in an environment where [the CFPB] threatens us with arbitrary suits and enforcement actions," he added. "That said, the right rules provide a measure of stability that benefits both lenders and borrowers… the wrong rules, or no rules do the opposite." In the past, Broeksmit has railed against the CFPB, blaming the watchdog for passing "contradictory and unworkable policies."