Advocacy Issues for 2006 During the 109th Congress the Action Alliance and MBA's government affairs staff will focus on:
- GSE oversight reform
- Enactment of a uniform national standard to combat abusive-lending
- FHA modernization
- Tax reform issues such as REMICs and protection of the mortgage interest deduction
- Combating Mortgage Fraud Against Lenders
- Data Security
- RESPA Reform
- Addressing the aftermath of Hurricanes Katrina and Rita
Click here for more information on these issues and MBA's positions.
Click here to find detailed analysis on each of these issues.
Click here to view MBA's 2005 legislative and regulatory progress report.
Summary of 2006 legislative and regulatory progress
In early February, the administration released its proposed FY2007 budget. We have and will continue to vigorously express to legislators and administration officials MBA's disappointment with several provisions in the proposed budget that would increase FHA, Ginnie Mae and Rural Housing Service fees.
We continue to lead an industry group developing a coordinated and comprehensive industry response to the devastation and major servicing issues caused by the aftermath of Hurricane Katrina. An MBA delegation surveyed Hurricane damage and heard from local officials in Mississippi and Louisiana in February. We are working to ensure that the impacted regions receive the full amount of federal assistance they will need to address the housing challenges of the thousands of impacted families.
In early February, MBA Chairman Regina Lowrie, CMB testified before the Senate Banking Committee's hearing on the National Flood Insurance Program (NFIP.) She called on Congress to increase the NFIP's borrowing authority and cautioned against an overly expansive extension of flood insurance requirements. In March, Congress passed S. 2275, legislation that increases the NFIP's borrowing authority to $20.8 billion. The bill was signed by the President on March 23rd. In the same month, the House Financial Services Committee also passed H.R. 4973, which would reform the NFIP by increasing the borrowing authority to $25 billion. The bill also includes an MBA-supported provision that caps the penalties and exempts non-material violations.
We are also asking Congress this year to dedicate $6.25 million, over a five-year period, to increase federal enforcement activities to fight mortgage fraud against lenders, one of the fastest growing white collar crimes. We are also working with elected officials on legislation that has been introduced at both the state and Federal levels. In early February, Senator Barack Obama (D-IL) introduced the "Stopping Transactions which Operate to Promote Fraud, Risk, and Underdevelopment Act, or the "STOP FRAUD Act," S. 2280. In addition, five states have introduced laws criminalizing mortgage fraud.
In January, MBA hosted a meeting of its members to refine MBA's position on a variety of GSE-related issues. Fannie Mae, Freddie Mac, and an outside economist made presentations to the group. MBA continues to lobby for GSE reform. We also sent a letter to HUD in February asking that Secretary Jackson clarify its recent authorization of acquisition, development and construction financing for Fannie Mae and initiate a public rulemaking to clarify permissible GSE activities.
MBA secured a big victory in January when FHA published a mortgagee letter rescinding nearly all restrictions on closing costs that could be charged to the borrower. MBA has long advocated for this reform. With the implementation of electronic endorsements in September, 2005 and the modification of its appraisal requirements in July, 2005, this marks the third major positive change in FHA policy in a seven-month period.
We continue to provide increased support to MBA members on state legislative and regulatory issues. We worked hard to educate elected officials and the public in Montgomery County, MD about the shortsightedness of an anti-predatory lending ordinance they passed in 2005. In March, immediately prior to its implementation, a Judge issued an injunction against the ordinance. We've also been actively educating elected officials in Ohio about the dangers of the anti-predatory lending law they are considering.
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