“All told, we expect your companies to close $683 billion in loans this year,” he said. Furthermore, he said that “every originator we spoke with said they had a ‘strong’ or ‘very strong’ desire to make new loans. And that optimism is only growing in 2020.”
For its part, the MBA has a number of key priorities on the policy front. “We’ll continue to urge the CFPB to finalize its proposed increase to the Home Mortgage Disclosure Act threshold that impacts multifamily lenders. The bureau previously indicated that it would raise the threshold from 25 to either 50 or 100 closed-end loans. We have pushed to make this happen before the 2019 window closes. Your companies need relief.”
Broeksmit also said the MBA will continue to work with the CFPB to fully exempt business-to-business multifamily loans from HMDA reporting. “The Bureau indicated that we may have proposed regulations this summer. We’re determined to ensure they reflect your needs.”
He also said the MBA is advocating to the IRS about the need for additional guidance on LIBOR-transition activities. “The original guidance, released in October, is unclear in a few places that are important to commercial real estate finance. We’re telling them that clarity for our industry is key.”
Broeksmit noted the MBA is also advocating with banking agencies about allowances on credit losses. “During the CECL transition, we’re calling on the agencies to serve as an early-warning system. We believe the banking agencies should be on the lookout for unintended consequences as the transition continues.”
