The Senate this morning passed a version of the 21st Century ROAD to Housing Act, earning generally positive reviews from the mortgage industry, though some trade groups raised concerns about what the bill includes and what needs to be changed.
Passage of the bill was overwhelming with 89 votes in favor to just 10 against, a strong sign of bipartisan support. The bill puts into law Pres. Trump's
The Mortgage Bankers Association felt what was passed was a flawed piece of legislation which needs to be fixed before the bill proceeds to Pres. Trump's desk.
"The restrictions on institutional investment in single-family housing would further limit financing for build-for- and built-to-rent housing communities, while the Federal Housing Administration multifamily section would reduce loan limits and constrain capital for new rental housing development," Bob Broeksmit, the organization's CEO and president, said in a statement about the bill that was passed.
Prior to its solo effort, MBA also participated in a group letter with other housing organizations addressing what they felt the bill got wrong about the build-to-rent business.
However, the National Multifamily Housing Council and the National Apartment Association put out a joint statement largely in opposition to what the Senate passed because of the "eleventh-hour addition" of the build-to-rent amendments.
It called the disposition rule "plainly not feasible," stating it would keep new communities from being built and divert investment.
The groups joined those calling for the removal of this provision as the House and Senate conference to get their respective bills aligned.
"Now is the time for lawmakers to return the bill to its original pro-housing intent to increase housing supply and ease affordability challenges for renters and their families," said the statement from NMHC President Sharon Wilson Géno and NAA President and CEO Bob Pinnegar.
The Community Home Lenders of America argued the bill does not go far enough to encourage homeownership.
"It is a testament to both Republican and Democratic Congressional leaders that the Senate has adopted the most comprehensive housing bill in more than a decade," the organization's statement said. "However, with the average age of a first-time home buyer climbing to 40 years old, further action — bold action — is needed."
It harkened back to what the U.S. in the 1960s during the Space Race.
"We need a moon shot type commitment — to devote resources and program changes to address the real challenges families and individuals in their 20s and 30s face in becoming homeowners," the CHLA said, adding it is developing such a plan and will announce its recommendations in a month or so.
The National Association of Mortgage Brokers on the other hand, gave the bill unqualified support.
"For the mortgage industry, more homes in the pipeline means more families ready to buy — and more opportunities for the brokers and loan originators who serve them," said NAMB President Kimber White in a statement.
The National Association of Affordable Housing Lenders also praised the legislation.
"By modernizing federal housing programs, reducing unnecessary barriers to development, and opening up new private investment to support construction and preservation of housing, including through the Low Income Housing Tax Credit, this act can help expand our housing supply and make housing more affordable for families across the country," said Sarah Brundage, NAAAHL president and CEO.
Other participants in the housing community offered measured praise, echoing the MBA's response that revisions may still be needed. The National Housing Conference applauded the Senate vote but emphasized that provisions affecting rental housing development will need attention in the House.
"No bill is perfect, but this legislation includes many important policies that will help expand housing supply and improve affordability," said NHC President and CEO David Dworkin. "We look forward to continuing to work with Congress and the administration to ensure the strongest possible version becomes law."
The American Land Title Association encouraged continued collaboration to expand homeownership while maintaining protections for homeowners.
"The title insurance industry looks forward to working with policymakers in both chambers to advance housing solutions while preserving the safeguards that protect American homeowners," said Chris Morton, CEO.
Dennis Shea, executive vice president and chair of the J. Terwilliger Center for Housing Policy at the Bipartisan Policy Center, said the vote moves practical solutions forward and expressed hope for cooperation between the two houses of Congress.
"Given how far lawmakers have come working together, we're hopeful they can keep building momentum to deliver a strong bill to the president's desk," Shea said.
The bill has a lot to like, but it needs improvement on "certain technical matters" as well as the single-family rental provisions, said Isaac Boltansky, head of public policy at Pennymac.
"To truly move the needle, we should ensure the final language doesn't create unintended headwinds for supply, consumers, or lenders," he commented.
