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I thank First Horizon for supporting me in attending MBA’s National Advocacy Conference 2022 on April 26-27. We thank the MBA for planning this event, making the events informative and easy for their attendees to navigate.I have attended this event and many other MBA events several times in the past, and in my opinion, this is the best conference the MBA does for its members each year! I heard we had 450 people attend this event. It is important that we as MBA members have meetings with our elected representatives in DC and educate them on how essential we are in creating home ownership and creating wealth for the citizens of our country. And let them know what bills or actions they can take so we can continue to fulfill the dream of home ownership for their constituents. There was a lot of discussion around issues such as Appraisal, Regulatory, Tax, RON, and Affordable Housing. Our key advocacy issues this year are listed below from the information that I copied from our NAC22 talking points. The NAC Residential Briefing went into more detail on each topic.
ISSUE: REMOTE ONLINE NOTARIZATION (RON)
NAC Action Requested:
Ask your Representative/Senator to co-sponsor and support passage of the SECURE Notarization Act (H.R. 3962 in the House and S. 1625 in the Senate) to enable the nationwide use of remote online notarization (RON).
ISSUE: APPRAISALS
NAC Action Requested:
Ask your Representative/Senator to urge FHFA, the GSEs, VA, FHA, and USDA, as well as the bank and credit union regulators, to leverage emerging technologies and implement process improvements with respect to appraisals. The focus should be on mitigating appraisal bias, lowering costs for borrowers, and reducing processing times.
ISSUE: REGULATORY CLARITY
NAC Action Requested:
1. Reinforce with your Representative/Senator that mortgage servicers provided critical relief to homeowners during the COVID-19 pandemic. Share your experience helping customers during the pandemic and the importance of the work of mortgage servicers implementing CARES Act forbearance.
2. Ask your Representative/Senator to ensure the CFPB does not resort to using enforcement actions to accomplish regulatory policy changes. The CFPB should abide by a consistent framework for providing authoritative written guidance that facilitates compliance, reduces implementation costs, and ensures consistent consumer treatment.
3. Reinforce with your Representative/Senator that legislative proposals aimed at improving access to financial services for consumers with limited English proficiency (LEP) should provide government-approved translation resources and clear compliance expectations.
TAX ISSUES
ISSUE: SECTION 199A PASS-THROUGH DEDUCTION
Overview: The 2017 Tax Cuts and Jobs Act (TCJA) created Section 199A of the Internal Revenue Code, which allows pass-through businesses to deduct up to 20 percent of their qualified business income (QBI). Section 199A will expire at the end of 2025.
MBA’s Recommendation/Position: MBA supports the current law QBI deduction for pass-through entities and recommends that it be held harmless in any tax/reconciliation discussions that may occur.
ISSUE: MINIMUM BOOK TAX/MORTGAGE SERVICING RIGHTS
Overview: The 2017 TCJA maintained the deferred tax treatment of income related to mortgage servicing rights (MSRs), as recognized for accounting purposes. The Biden Administration has proposed that companies earning more than $1 billion in net income pay a 15% minimum “book” tax (MBT), which would have negative “downstream” impacts for the MSR market. Mortgage lenders — both single-family and commercial/multifamily — defer income tax liability on MSRs until the cash for servicing the loan is received. In short, the lender recognizes the MSR asset for accounting, but not tax purposes.
MBA’s Recommendation/Position: MSRs are a key element of the housing finance system. Altering the current tax treatment of that asset (even if limited to the country’s larger holders of servicing via an MBT) would create market volatility and negatively impact consumers. MBA asks that the current deferred tax treatment of MSRs not be altered or indirectly distorted via an MBT intended to achieve an entirely separate purpose.
ISSUE: TAX TREATMENT OF GAIN ON SALE OF HOME
Overview: Under current law, certain taxpayers can exclude from tax a portion of the capital gain on a home sale. This applies to taxpayers who have used the home as their principal residence for two out of the previous five years ($250k for individuals, $500k for married filers).
MBA’s Recommendation/Position: MBA continues to support current tax law, as we believe this provision is critically important to wealth building and retirement savings. The current provision increases velocity within the residential marketplace by suitably incentivizing the “move-up” middle class home buyer and opening entry level housing supply for first-time buyers.
MBA also believes that Congress should consider indexing this provision for inflation, given the pricing and affordability challenges faced by homebuyers in individual markets throughout the country.
ISSUE: CAPITAL GAINS TAX RATE
Overview: Under current law, capital gains are taxed at a lower rate than ordinary income.
MBA’s Recommendation/Position: MBA recommends that capital gains continue to receive preferential tax treatment relative to ordinary income to incentivize long-term investments.
ISSUE: AFFORDABLE HOUSING AND MINORITY HOMEOWNERSHIP
NAC Action Requested:
Ask your Representative/Senator to advance programs that reduce barriers to homeownership and support the bipartisan principle of housing affordability as vital for continued economic recovery (by boosting first-time purchases) and increasing homeownership opportunities for low-to-moderate-income borrowers and minority households.
Potential MBA-supported bills to ask your Representative/Senator to co-sponsor:
• Affordable Housing Credit Improvement Act (S. 1136 in the Senate and H.R. 2573 in the House). This legislation would expand and strengthen the Low-Income Housing Tax Credit (LIHTC) to address the nationwide affordable rental housing shortage, leading to the construction of more than two million new affordable units over the next decade and ensuring the program better serves a variety of at-risk and underserved communities.
• Neighborhood Homes Investment Act (S. 98 in the Senate and H.R. 2143 in the House). This legislation provides a tax credit to rehabilitate blighted single-family homes, help revitalize
neighborhoods across America, and increase the supply of affordable, entry-level homes
• Yes In My Backyard (YIMBY) Act (S. 1614 in the Senate and H.R. 3198 in the House). This legislation would provide the federal government with new tools to encourage localities to remove legal and regulatory barriers that impede new construction and housing development.
• Housing Supply and Affordability Act (S. 902 in the Senate and H.R. 2126 in the House). This legislation was included in the House-passed Build Back Better Act and would create the Local Housing Policy Grant (LHPG) program administered by HUD to support local efforts to expand housing supply.
• Downpayment Toward Equity Act (S. 2920 in the Senate and H.R. 4495 in the House). This legislation was included in the House-passed Build Back Better Act and would address existing racial wealth and homeownership gaps by providing down payment and other financial assistance for first-generation and first-time homebuyers. MBA successfully secured the inclusion of key provisions to establish a uniform approach to administration of the program (rather than a state-by-state model) and grant participating lenders a meaningful safe harbor should borrowers self-attest their first-generation homebuyer status and later be deemed ineligible.
What We Did:
On Tuesday we had several meetings to bring us up to speed on the key topics we were to discuss with representatives and their aids on Capitol Hill.
Opening General Session: Political and Market Landscape
Speakers included:
Bob Broeksmit, CMB, President & Chief Executive Officer, MBA,
Michael Fratantoni, Ph.D., Chief Economist and Senior Vice President of Research and Industry Technology, MBA, Bill Killmer, SVP, Legislative and Political Affairs, MBA,
I attended the Residential Policy Briefing and Legislative Update (Closed to Media)
Speakers included:
Dan Fichtler, Associate Vice President, Housing Finance Policy, MBA
Tallman Johnson, Associate Vice President of Legislative Affairs, MBA
Bill Killmer, SVP, Legislative and Political Affairs, MBA
Alden Knowlton, Associate Vice President of Legislative Affairs, MBA
Pete Mills, SVP, Residential Policy and Strategic Industry Engagement, MBA
Ethan Saxon, Associate Vice President, LPA, MBA
Justin Wiseman, Associate Vice President, Managing Regulatory Counsel
Public Policy and Industry Relations, MBA
There was also a Commercial/Multifamily Finance (CMF) Briefing and Legislative Update (Closed to Media) held while I attend the Residential section
Speakers included
Borden Hoskins, Associate Vice President, LPA, MBA
Bill Killmer, SVP, Legislative and Political Affairs, MBA
Stephanie T. Milner, Associate Vice President, Multifamily, MBA
Bruce Oliver, Vice President, Commercial Multifamily Policy, MBA
Our Tuesday speakers also included –
Congressman Tom Emmer (R-MN-6), U.S. House of Representatives.
Mark A. Jones, 2022 MBA Vice Chair; Chief Executive Officer and Co-Founder, Amerifirst Home Mortgage.
Senator Sherrod Brown (D-OH), Chairman, Senate Committee on Banking, U.S. Senate.
Lunch session at MBA NAC22 was with Margaret Brennan and Kristy Fercho it was very good. There was an inspiring nPower meeting with Nicole Booth, Executive Vice President, Public Affairs, Notarize, Marcia M. Davies, mPower Founder; Chief Operating Officer, MBA, Congresswoman Madeleine Dean (D-PA-4), U.S. Senate
Bill Killmer, SVP, Legislative and Political Affairs, MBA, and Congresswoman Young Kim (R-CA-39), U.S. House of Representatives. Tuesday evening was topped off with a private reception at the National Archives Museum. The MBA Events App was very helpful providing information on speakers and in keeping everyone on track for the next event.
Senator Sherrod Brown (D-OH) Chairman of the Senate Banking, Housing, and Urban Affairs Committee had a last-minute scheduling change and was unable to speak to our group due to votes in committee. But he sent us the video after the event: Chairman Brown NAC Remarks
On Wednesday we stated our day at 7:30am at the Renaissance Hotel for a breakfast meeting with all the states and for any last-minute schedule changes. We were provided materials for the conference including maps, schedules, in depth issue briefings, and talking point bullets. We then we started with a Zoom meetings and our visits to Capitol Hill. Most of the meetings my group had were with legislative aids that were at the least aware of our key topics. Many were [AT1] extremely knowledgeable on the topics because of the active communications done by the MBA Legislative and Political Affairs group.
I was one of the team leaders for the Florida delegation and since we had several attendees from Florida, we split up into 3 teams. We met with our Senators in a large, combined group of all our teams and Congressmen and Congresswomen in our smaller teams. Meetings were scheduled from 9:00 AM till 4:00 PM and nearly all my team’s meetings were held live in the representative’s office. The meetings were followed by a Capitol Hill Debrief that began at 4:00 PM and lasted till 6:00 PM.
Our team met with all the following:
Sen. Rick Scott (with Katie Weissert, Sr. Policy Adv.) FL-S (R) Zoom meeting
Sen. Marco Rubio (with Caleb Seibert, LA) FL-S (R) office meeting
Rep. Mario Diaz-Balart (with Member and Elizabeth Dos Santos LA) FL (R) office meeting
Rep. Maria Elvira Salazar (with Josh Duncan LA) FL-27 (R) office meeting
Rep. Carlos Gimenez (with E.J. Valentine LD) FL-26 (R) office meeting
Rep. Vern Buchanan (with TBA) FL-16 (R) office meeting
Rep. Byron Donalds (with Alexandria Smith, LD) FL-19 (R) office meeting
I am not sure what Congressmen and Congresswomen from Florida met with our other Florida teams but the feedback I heard was all positive.
Many of our Florida attendees have been to several NAC conferences and we delivered our messages well. If you attended this event do not forget to send follow-up emails to send out to the individuals, you met with.
National Advocacy Conference 2022 04/27/2022
Florida’s Delegation
Danette Alfonso Lennar Mortgage Miami FL (FL-27)
Tim Allen (State Leader) First Horizon Bank Naples, FL (FL-19)
Matt Brockelman VyStar Credit Union Jacksonville FL (FL-05)
Douglas Calabrese Lennar Mortgage Palm Harbor FL (FL-12)
Alex Cardenas Security National Mortgage Company Orlando FL (FL-07)
Bremen Clermont Inlanta Mortgage Inc. Sarasota FL (FL-16)
Yvette Clermont Inlanta Mortgage Inc. Sarasota FL (FL-16)
Nitin Dave CPA MBA Reliable Mortgages, Inc. Longwood FL (FL-07)
Laura Escobar Lennar Mortgage Miami FL (FL-25)
Charlie Fields PennyMac Financial Services, Inc. Tampa FL (FL-14)
Samantha Gates Inlanta Mortgage Inc. Sarasota FL (FL-16)
Richard Goble CMB Reliable Mortgages, Inc. Longwood FL (FL-07)
Susan Holmes Digital Risk, LLC Maitland FL (FL-07)
Jennifer Kouchis CMB VyStar Credit Union Saint Augustine FL (FL-04)
Kimberly Lanham (State Leader) Digital Risk, LLC St. Augustine FL (FL-04)
Jack Lerbs Lennar Mortgage Clearwater FL (FL-13)
Deborah Moore CMB Capital Markets Cooperative, LLC Ponte Vedra Beach FL (FL-04)
Bob Niemi CMB (Group Leader) Bradley Arant Boult Cummings, LLP Odessa FL (FL-12)
Chanda Noe Lennar Mortgage Lithia FL (FL-16)
Dustin Owen CMB, AMP Waterstone Mortgage Corporation Winter Springs FL (FL-07)
Richard Peek CRMS The Mortgage Firm Altamonte Springs FL (FL-07)
Arlene Polifroni Lennar Mortgage Miami FL (FL-25)
Michael Seabron Lennar Mortgage Clearwater FL (FL-13)
Jeffrey Taylor Digital Risk, LLC Maitland FL (FL-07)
David Todd Lennar Mortgage Clearwater FL (FL-13)
Wendy Ward VyStar Credit Union Jacksonville FL (FL-05)
Daniel Weberman Kabinet Inc. Miami FL (FL-26)
Suha Zehl BlackFin Group Land O' Lakes FL (FL-12)
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