Housing bill talks continue in House

The future of a bipartisan housing legislation remains in limbo as lawmakers continue negotiations over timing, amendments, and political support for a sweeping housing package. House leadership is reportedly drafting a new version of its own bipartisan housing bill, the Housing for the 21st Century Act, to be considered under suspension in response to the latest Senate-proposed 21st Century ROAD to Housing Act. While both chambers remain divided over how to reconcile their respective bills, negotiations are ongoing, even as no formal conference process or legislative timeline has been established.

Representative Emanuel Cleaver (D-Mo.) penned a recent opinion piece highlighting the work being done across the aisle to move housing legislation across the finish line. “We are 90 percent of the way there,” he writes. “But just like Orion, the mission is not accomplished until the journey is complete — and we cannot congratulate ourselves until we are safely home. Thankfully, it doesn’t take a rocket scientist to stick this landing. The difference between a historic success and a tragic failure will come down to lawmakers’ ability to accept compromise.”

The outlook for the Senate-passed 21st Century ROAD to Housing Act was improved after reports that President Trump privately raised objections to Section 901 of the bill that severely limits institutional investor activity in the housing market. Many housing groups have encouraged the removal or revision of Section 901 to better allow build-to-rent activity that will support housing production. Those concerns have reportedly prompted additional discussions among Republican leadership and lawmakers over how to proceed while maintaining bipartisan support for the bill.

Housing groups send letter on easing building provisions

A coalition of nearly 100 affordable housing organizations and industry groups is urging Congress and the Trump administration to reconsider how the Build America, Buy America Act (BABA) is applied to affordable housing projects. In a new sign-on letter, the groups argue that the current implementation of BABA has led to rising development costs, project delays, and significant administrative burdens that are slowing or preventing the construction and preservation of affordable housing. The letter notes that many construction materials commonly used in affordable housing are either unavailable from domestic manufacturers or available only at substantially higher costs. The organizations also contend that the current waiver process has proven “onerous, costly, and unworkably slow,” with some projects reportedly requiring dozens of individual product waivers.

The coalition, which includes the National Housing Conference and many of its members, alongside dozens of other national, state, and local organizations, recommends either exempting affordable housing programs from BABA requirements or implementing reforms to streamline compliance. Proposed changes include temporarily suspending BABA implementation for affordable housing programs, increasing the de minimis waiver threshold from 5% to 10%, establishing broader product waivers, and creating a centralized database of compliant building materials and products.

MBA publishes housing affordability checklist for federal agencies

The Mortgage Bankers Association (MBA) recently published its Housing Affordability Checklist for federal government agencies. The Checklist outlines MBA policy priorities aimed at increasing affordability, lowering borrower costs, expanding credit availability, reducing mortgage production and servicing expenses, and modernizing the housing finance system. Notably, all items on the Checklist can be addressed through administrative actions by the federal agencies, without requiring legislation from Congress. Among the key items highlighted in the Checklist are:

• Ending the tri-merge mandate and adopting a single-file credit report framework for scores above 700. 
• Aligning and reducing Loan Level Price Adjustments (LLPAs) for purchase loans and rate/term refinances. 
• Modernizing Reg X to provide streamlined loss mitigation to borrowers in default.
• Publishing calibrated bank capital rules according to actual risk of mortgage assets. 

MBA intends to periodically update the Checklist as policy developments emerge, and new opportunities to improve housing affordability are identified. To always find the most up-to-date version of the Checklist, click here. Supporting materials on these issues, including comment letters, white papers, and issue briefs, can all be accessed on the All Letters and Testimony and Residential Policy Issues pages at MBA.org.