The $1.5 trillion omnibus spending bill that President Biden was expected to sign by deadline Friday promises to bring relief to the single-family and multi-family mortgage markets by warding off several threats to operations supporting the flow of funds to the American housing.
In addition to funding broad systemic risk management measures, such as a 72-hour reporting requirement for cyberattacks, the 2,741-page bill avoids a federal shutdown, which could have hampered the functioning of a national housing finance market largely dependent on its ties to the government. Although government and industry stakeholders have made progress in preparing for business continuity issues after having to navigate several natural disastersthe pandemic and past lapses in federal funding approvals, government shutdowns remained a significant threat to the housing market.
In addition to removing this threat, the wording of the bill addresses other concerns that could otherwise impede access to government funding aimed at helping consumers access affordable housing. One aspect of the bill also addresses a key concern about the private mechanisms used to finance purchases of residential real estate and other assets.
“These provisions will help consumers, including low-to-moderate income renters and borrowers, participate in both the rental and homeownership experience,” said Bob Broeksmit, president and chief direction of the Mortgage Bankers Association, in an emailed statement.
The specific housing finance issues that the bill seeks to alleviate include complications related to Phasing out of LIBORthe Federal Housing Administration’s outdated technology that needs upgrading, the continued availability of federal flood insurance, and delays affecting the flow of government funds available to finance affordable multifamily properties.
To learn more about these mortgage implications of the spending bill, read on.