GIVE US THE BILL of action to seek financial redress if these protections are violated, give borrowers the right to a timely notification on the status of their loan modifications, and to be able to appeal modification denials. Biden’s Bill of Rights would expand protections for renters by prohibiting landlords from discriminating against tenants receiving federal housing benefits. And Biden promises to back legislation which would help tenants facing eviction gain access to legal assistance. Such bills have been introduced in the House and Senate by House Majority Whip James E. Clyburn, D-S.C., and U.S. Sen. Michael Bennet, D-Col. Furthermore, a Biden Administration would reverse Trump’s attempts to “gut” the disparate impact standard, put into place during Barack Obama’s presidency, that holds that lending practices that have a discriminatory effect can be challenged even if discrimination was not explicit. Thus, financial institutions would once again be held accountable for serving all customers. The Democratic standard bearer would also roll back policies that have gutted fair lending and fair housing protections for home buyers by requiring communities receiving certain federal funding to proactively examine housing patterns and identify and address policies that have a discriminatory effect. The Trump Administration suspended this Affirmatively Furthering Fair Housing rule in 2018. Biden will ensure effective and rigorous enforcement of the Fair Housing Act and the Home Mortgage Disclosure Act. And he will reinstate the federal risk-sharing program which has helped secure financing for thousands of affordable rental housing units in partnership with housing finance agencies. Because of space limitations, you’ll have to visit The Biden Plan for Investing in Our Communities Through Housing (https://joebiden.com/ Housing/#) to see what else he has in mind. There’s plenty there.
What policy goals are your trade associations supporting on your behalf? Here’s a look at the top priorities of the four major trade groups for the next president and Congress: NATIONAL ASSOCIATION OF MORTGAGE BROKERS • Change Home Mortgage Disclosure Act forms to eliminate questions concerning ethnicity and make other corrections, including removing any references to skin color. • Stop the practice of “trigger leads” in which credit bureaus sell information about persons applying for mortgages with one broker to other brokers and lenders without the applicants’ knowledge or approval. • Remove the 3% Qualified Mortgage cap on mortgage broker company compensation that creates a disparate impact on low and moderate-income borrowers, placing them in higher rate loans than they could otherwise qualify. • Support the bi-partisan American Dream Downpayment Act introduced in the Senate to create tax-advantaged accounts so people can save up to $12,000 annually for a down payment on a house. MORTGAGE BANKERS ASSOCIATION • Eleven years after Fannie Mae and Freddie Mac were made wards of the state, the MBA is still working to lock in reforms to America’s housing finance system, including granting equal access to the agencies to all players in the market. MBA advocates for policies that encourage a robust secondary market with many competing executions across both government-supported and private channels. It has asked the Federal Housing Finance Agency to restructure the capital framework for the GSEs, moving from past business models to a market utility approach that enables them to meet all of their obligations. • Regulatory clarity. While supportive of necessary regulations, the MBA believes both legislators and regulators at all levels need to take a had look at the true impact their decisions have on housing finance. • Taxes as they relate to all facets of real estate finance -- residential, commercial and multi-family. NATIONAL ASSOCIATION OF REALTORS At 1.4 million members, the nation’s largest trade group has sent Congressional leadership nearly 75 letters this year weighing in on policy issues that could affect the real estate industry. Its’ main priorities are: • Support for first-time and minority buyers through down-payment tax credit legislation at both the federal and state levels as well as any kind of tax credit
incentive for home ownership. • Addressing housing affordability, accessibility and inventory constraints while providing support for underserved buyer populations. In particular, the NAR fears the proposed capital standards for Fannie and Freddie could hinder their ability to execute their mission. NAR continues to promote its proposed utility model, which highlights competition and remedies the failures of the pre-crisis system. Had the GSEs been private entities when COVID-19 forced business closures and mass layoffs, NAR says, it is likely the nation’s housing market would have been devastated as the purely private GSEs pulled back, pushing our economy deeper into recession. • Support of commercial real estate, including Opportunity Zones and Sec. 1031 like kind exchanges, community development and infrastructure reform. NATIONAL ASSOCIATION OF HOME BUILDERS Housing finance reform also is a key legislative goal, but it takes a back seat to: • Affordability, specifically comprehensive strategies at the federal, state and local levels to reduce building costs, boost supply and empower home buyers with a mix of housing choices. “Americans are struggling to afford one of the most basic human needs – shelter. The only way to solve this crisis is to build more homes,” the builders’ group says. “But local governments often stand in the way with excessive regulations and restrictive zoning policies. Housing isn’t one-size-fitsall; home builders need the flexibility to build what the market demands.” • Workforce development. Eighty-five percent of builders say the availability and cost of workers is the most significant challenge they face, causing delays and higher prices to home buyers. • The rising cost of building materials, caused by trade wars on softwood lumber, steel, aluminum and other imported supplies and equipment. Counterproductive trade policies also drive up the cost of housing and push ownership out of reach of hard-working American families, says the NAHB, which wants Congress to demand an end to tariffs on the numerous goods imported to build American houses.
—Lew Sichelman
NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |
45
