The $1.5 trillion omnibus spending bill President Biden was expected to sign at deadline Friday promises to bring relief to the single- and multifamily mortgage markets by heading off several threats to operations supporting the flow of funds into U.S. housing.
In addition to funding broad, systemic risk-management measures like a 72-hour cyberattack reporting requirement, the 2,741-page bill avoids a federal shutdown, which could’ve impeded the functioning of a domestic housing-finance market largely dependent on its government ties. Although government and industry stakeholders have made strides in their preparedness for business continuity concerns after having to navigate several large-scale natural disasters, the pandemic and past lapses in federal funding authorization, government shutdowns have remained a significant threat to the housing market.
In addition to removing that threat, the bill’s language addresses other concerns that could otherwise impede access to government-related financing aimed at helping consumers access affordable housing. One aspect of the bill also addresses a key concern for private mechanisms used to fund purchases of residential real estate and other assets.
“These provisions will help consumers, including low-to-moderate-income tenants and borrowers, participate in both the rental and homeownership experience,” said Bob Broeksmit, president and CEO of the Mortgage Bankers Association, in an .ed statement.
Specific housing-finance issues the bill aims to alleviate include complications related to Libor’s phase-out, outdated Federal Housing Administration technology in need of modernization, continued availability of federal flood insurance and delays affecting the flow of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-related implications of the spending bill, read on.