Bob Broeksmit outlines MBA priorities under Trump administration
Here are the details of the priorities of MBA:
Letting go of the GSEs of the conservatory
Broeksmit said that the MBA has identified four umbrella principles that she believes should frame the release of Fannie and Freddie:
- An explicit backstop. “Without that, the trust of global investors can buy, keep and sell GSE mortgage supported effects, which would strongly influence liquidity on the market and increase the rates even higher than they are now.”
- A level playing field. FHFA must ensure that “prices and insurance do not vary for a lender based on size, business model or charter.”
- The clear line between primary and secondary market functions. This must be “clearly defined and rigorously enforced by FHFA.”
- Regular improvements at FHFA. FHFA must be granted “the necessary powers and responsibilities to regulate GSE returns and market behavior, often seen as authorities in utilities.
“We are ready to work with the Trump administration and members of the 119th congress and launch a new era of home financing – one in which the GSE world,” said Broeksmit.
Expansion of tax provisions
The MBA will collaborate with the congress on the expansion of tax provisions that have been established expired By the end of this year. These include:
- Maintaining the deferred tax treatment of mortgage maintenance rights.
- Maintaining the 199A Pass-through Deduction Section
- The preservation of and possibly exclusion of capital involvement for the sale of primary homes.
- Expansion and improvement of the Low income house tax credit And supporting other tax credits for housing facilities.
- Supporting provisions such as 1031 Exchanges.
Broekmit said that MBA closely monitors the various proposals to pay for tax cuts. Spending more than the government assumes means to give many treasury obligations, which increases the delivery of fixed -income instruments – and that could increase the mortgage interest.
There is also a concern that tax hawks in the congress will see a ready-made solution in the GSEs. “The specific thing we have to stand on is that GSE -Release is not hurried because there is a pot of money at the end of the rainbow that will help pay for tax reductions,” said Broeksmit.
Garree compensation can be another seductive source of income for the congress, said Broeksmit. “Some of you remember it many years ago, there was a ponus of one month, paid with an increase of 10 years, 10 basic points to Fannie and Freddie G-Fees, and the minute has fallen for a few years from those 10 years The congress has been shown willingness to expand it. “
Trigger leads
The MBA will continue its advocacy for a trigger, Bill leads that will build on the momentum that we have reached in the last congress and complete the urge to use the use of trigger -leaves too curvature, while their use in Appropriate limited circumstances are retained. , “Said Broeksmit. Significant efforts pushed the trigger lead by the Senate at the end of December, but the legislation was stuck in the house when the period ended.
Credit scores
Broeksmit said: “Answering the many unanswered questions and roadblocks that our members have with regard to the transition from Fico 10 T and Running score 4.0 As well as a BI-Merge option, ”are at the top of the list of MBA priorities.
In particular, Broeksmit said in the current credit core process: “The government donates the market position by requiring it for the government supported by the government, and then the entities that produce these services, raise prices in a way that has no influence on them to be provided. That is an inappropriate use of a market advantage donated by the government, and it costs your companies and your borrowers millions of dollars in extra costs. “
Regulations and affordability
Broekmit praised President Trump’s promises to reduce unnecessary regulations to reduce the costs for lenders and consumers.
“The availability and affordability of housing was one of the most important issues in the heads of voters in the 2024 elections. President Trump campaigned on reducing the costs for Americans and we appreciate the supply and affordability of homes included in an executive order About this issue. We will support the efforts to reduce unnecessary legal bureaucracy and to pursue the improvements of the federal housing program, which makes renting and the homeowner more achievable and more sustainable. “
