MBA seeks clarification on OMB directive

Association highlights how recent directive affects homebuyers

MBA seeks clarification on OMB directive

The Mortgage Bankers Association (MBA) is calling on federal agencies to clarify whether a recent Office of Management and Budget (OMB) directive applies to single-family and multifamily loan insurance and guarantee programs.

In a statement issued Wednesday, MBA president and CEO Bob Broeksmit, CMB, urged the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), and the Rural Housing Service at the Department of Agriculture (USDA) to confirm that their loan programs remain unaffected by the OMB memo.

“The Federal Housing Administration, Department of Veterans Affairs, and Rural Housing Service at the Department of Agriculture must clarify that the January 27 OMB memo calling on federal agencies to temporarily suspend payments for federal grants, loans, insurance and loan guarantees does not apply to the single family and multifamily loan insurance or guarantee programs at their agencies,” Broeksmit stated.

The OMB memo, released on Tuesday, called for a temporary suspension of payments on federal grants, loans, insurance, and loan guarantees, raising concerns about potential disruptions to the mortgage market. MBA emphasized that without clear assurance from federal agencies, homebuyers could face uncertainty when closing on their loans.

“Americans are going to the closing table tomorrow and deserve to know that their loan will close on their home purchase,” Broeksmit said. “Without this clear assurance that the federal government will insure new loans or pay claims under these programs, there will be severe harm to borrowers and disruption to the mortgage market.”

The MBA, headquartered in Washington, D.C., represents over 2,000 companies in the real estate finance industry, including mortgage banks, brokers, commercial banks, credit unions, and other lenders. It advocates for policies affecting residential and commercial real estate markets.

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