February 10, 2021

In This Issue:

  • TLTA Legislative Update
  • Analysis by Ross Ramsey: 2021’s low-key Texas Legislature
  • Redefining QM Lending
  • MBA: 4th Quarter Commercial/Multifamily Borrowing Falls 18 Percent

TLTA Legislative Update

TLTA | Feb. 10, 2021

Speaker of the Texas House Dade Phelan announced House committee assignments on Thursday, Feb. 4, and there are many new faces in leadership roles. Here are some committee assignments of which you should be aware:

Insurance Committee

Rep. Tom Oliverson, who carried our TTIGA bill last session, has been named chairman of the House Insurance Committee. We enjoy working with Chairman Oliverson and his staff, and we look forward to a good working relationship this session and beyond. Longtime friend and Insurance Committee member Rep. Hubert Vo will serve as vice chair. 

Business and Industry Committee

We have enjoyed a longstanding, productive working relationship with B&I's new chair, Rep. Chris Turner. This committee oversees the Property Code, where most of our industry's issues reside. Rep. Cole Hefner will serve as vice chair. 
Review House committee assignments by committee »
Review House committee assignments by member »
Legislative activity remains relatively subdued due to the pandemic, but the Senate Finance Committee began their hearings on SB 1 – the Senate's version of the state budget for the upcoming 2022-23 biennium. During the Finance Committee's first budget hearing on Monday, Comptroller Hegar reviewed his Biennial Revenue Estimate, and the Legislative Budget Board provided a summary of SB 1. Crafting a state budget for the upcoming biennium is the only responsibility legislators are constitutionally required to fulfil during the legislative session, therefore all legislative activity at the Capitol is impacted by the budget's development. 


TLTA's legislative priorities

Our legislative priorities  for the 87th Legislative Session were approved by TLTA's Board of Directors  as recommended by our Legislative Committee , which is chaired by Steve Streiff. These statutory changes would improve real estate transactions. Look for more detailed analysis in the very near future on the two bills that TLTA is championing this Session.

Bills we are monitoring

We are currently tracking the following bills of interest . If these bills begin to move through the process and TLTA takes official positions on them, we’ll provide more detailed information about our stance and how they might affect you and your business.

Questions about TLTA's legislative process and how you can get involved?

The TLTA Legislative Committee, our Local Legislative Liaisons, our Grassroots Network and our PAC Board of Governors are all part of our team of engaged legislative advocates. Learn More About TLTA's Legislative Process and How You Can Get Involved »

Analysis by Ross Ramsey: 2021’s low-key Texas Legislature

Texas Tribune | Feb. 5, 2021
You wouldn’t want to say this Texas Legislature doesn’t have an agenda. Maybe it’s a secret, or — more likely — it’s just that the list is too obvious to require a proclamation: write a state budget, draw new political maps, revise election and voting laws, address the problems of racial justice and police practices heightened by incidents like the killing of George Floyd last summer.
You can’t say there is nothing to work on. Lawmakers have filed more than 2,200 bills so far. But you can say that Gov. Greg Abbott has now made clear what he hopes to do over the next four months and that the Legislature has not. Those lawmakers have barely taken the field. The session started almost four weeks ago, and nothing requiring your attention — other than the formal selection of House Speaker Dade Phelan and his Thursday afternoon shake up of House committees — has taken place.

Read More »

Redefining QM Lending

MReport | Feb. 5, 2021
The mortgage industry is no stranger to volatility. However, with a new presidential administration, a global pandemic, and record-high origination volumes, 2021 promises to bring more twists and turns than ever and will undeniably bring along with it new compliance challenges. 

Successfully dealing with these challenges requires first identifying what they are. We are already aware of some, such as the Consumer Financial Protection Bureau’s (CFPB) Qualified Mortgage (QM) rule changes. Others we’re not yet sure of—such as the impact the Biden Administration will have on the housing industry. Regardless of what happens, it’s important for originators and other industry participants to understand the potential risks and have a plan in place for addressing them.  

More Modifications to QM Loans? 

One of the biggest compliance changes originators will face this year began in December, when the CFPB issued final rules involving the Ability to Repay/Qualified Mortgage (ATR/QM) standard. In essence, the CFPB redefined what constitutes a QM loan and also created a new seasoned QM standard for portfolio loans that meet certain performance requirements. The distinctions will be important. For example, issuers of loan pools currently must retain 5 percent of the risk if any loans in the pool are non-QM. This prevents the co-mingling of a few non-QM loans into a securitization that is primarily comprised of QM loans.  

Read More »

MBA: 4th Quarter Commercial/Multifamily Borrowing Falls 18 Percent

Mortgage Bankers Association | Feb. 9, 2021
Commercial and multifamily mortgage loan originations fell by 18 percent in the fourth quarter from a year ago, but increased by 76 percent from the third quarter, according to the Mortgage Bankers Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
A preliminary MBA measure of commercial and multifamily mortgage originations volumes shows borrowing and lending in 2020 was 30 percent lower than in 2019, with all major property types and most capital sources – outside government-backed loans – seeing lower levels of activity.

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