New markets require new approaches and tactics.Experts and industry leaders take the stage Inman Connect New York Navigate market changes and prepare for the next. Meet us in the moment and join us. Register here.
Rising mortgage rates and fierce competition among homebuyers helped mortgage brokers gain market share in 2022, but increased spending on lobbying and political campaigns has kept politicians and politicians behind the scenes. Expanded influence on policy makers.
The Association of Independent Mortgage Professionals (AIME), a trade group representing mortgage brokers with more than 65,000 members, has more than doubled its spending on federal lobbying in 2022.
AIME also launched its Political Action Committee (PAC) in July, raising more than $350,000 from senior lenders, including United Wholesale Mortgage (UWM).
So far, AIME’s Broker Action Coalition Political Action Committee (BACPAC) has not donated much of the funds it raises, having raised just $25,000 to date.
But AIME spent $170,000 for lobbying According to OpenSecrets.org analysis, in the first nine months of 2022 in Washington, D.C. $96.9 million The increase in spending across the real estate industry over the same period is up 112% from the $80,000 spent on lobbying by AIME over the course of 2021.
Winning in Florida with other states in mind
As the year drew to a close, AIME and UWM were credited with a “big win for independent mortgage brokers.” A rule change to allow Florida mortgage brokers to provide access to the Florida Hometown Heroes Housing Program, a state-run down payment assistance program. .
of hometown heroes show — Provides down payment assistance of up to $25,000 for teachers, healthcare workers, police officers, firefighters, and other “frontline community workers” — Initially not available through third-party financing sources such as mortgage brokers was.
However, an AIME spokesperson told Inman in an email that the program was modified to allow mortgage brokers to participate “through joint efforts of AIME and UWM.” letter campaign I also met with officials from the Florida Housing Finance Corporation, which manages the state’s Hometown Heroes program.
“Our joint advocacy efforts have included an organization leadership meeting with David Westcott, Director of Homeownership Programs at the FHFC, and a Broker Action letter, in which Florida brokers sent hundreds of letters to state legislators. It included grassroots advocacy through the Coalition.
A spokeswoman for the Florida Housing Finance Corporation did not immediately respond to a request for comment by Inman.
Brendan McKay
Brendan McKay, owner of McKay Mortgage and AIME advocacy president, said the group wants to have the same discussion in other states where mortgage brokers are currently excluded from such programs. .
“For too long, no independent mortgage broker has offered consumers a state-funded down payment assistance program,” McKay said. statement“Previously, homebuyers who use Hometown Heroes were also unable to take advantage of the savings that mortgage brokers can offer.AIME is thrilled that this is no longer the case and is working with other states. We look forward to making the same adjustments in the future.”
Matt Ishbia
UWM CEO Mat Ishbia called Hometown Heroes a “winning program.” Brokers and borrowers across the country need to be mindful of this as it could be coming to your state soon, and this is what UWM and AIME together are doing to ensure that mortgages are always available for his broker community. It shows willingness to fight. “
trying to overtake influential rivals
AIME, a rival industry group, has stepped up its lobbying and campaign funding efforts National Mortgage Brokers Association (NAMB), influential.
NAMB lobbying budget It peaked at $2.4 million in 2009, according to records held by OpenSecrets, a largely futile effort to stop more regulation targeting mortgage brokers after the subprime mortgage crash. It turns out.
NAMB Political Action Committee, number packraised a total of $78,107 in the recent two-year election cycle. He spent $17,500 in the same period from January 1, 2021 to November 28, 2022. Federal Election Commission (FEC) Database.
After launching its own PAC, BACPAC, in July, AIME announced that it had raised over $300,000 in 24 hours.
“Our industry is growing,” McKay said. statement At the time. “We need to make sure our influence grows with it.”
according to FEC filingmore than 40 wholesale mortgage industry leaders scraped up their checkbooks and wrote a $5,000 check in July to help get BACPAC off the ground. hundreds of I made a small donation.
Those who donated $5,000 included UMortgage CEO Anthony Casa, Epoch Lending CEO Evan Wade, and NXT Mortgage Co. President Tyler Hodgson.
Three Homepoint Financial executives — CEOs William Newman, Phil Shoemaker and William Pendleton — each wrote a check for $5,000providing a total of $15,000 in funding.
Eight United Wholesale Mortgage employees wrote checks totaling $13,250 to help launch BACPAC. $5,000 for each kickUWM Chief Growth Officer Desmond Smith and Vice President of Sales Robert Shkreli each wrote a check for $1,000.
A total of eight employees of C2 Financial Corp. $13,250 for BACPACincluded loan originator Jeri Lynn Shaw and loan officer Shelly Hymer, each contributing $5,000.
BACPAC spending So far, we have made a limited contribution of $2,500 to re-elect Patrick McHenry of North Carolina, the next leader of the House Financial Services Committee, and an influential member of the Senate Finance Committee. Includes a $2,500 campaign contribution to an Idaho Republican, Mike Crapo.
BACPAC also Defend Conservative Senate PACThis supported many prominent Republican candidates in the U.S. Senate in November, including the successful candidacy of JD Vance from Ohio and the failed candidacy of Herschel Walker and Mehmet Cengiz Oz (“Doctor Oz”). did.
To step up its lobbying efforts, AIME hired Forbes Tate Partners, Washington, DC’s 11th largest lobbying firm, to bring in $18.5 million in revenue in the first nine months of 2022. Records edited by OpenSecrets.
“2022 was the year AIME decided to significantly step up its advocacy efforts,” said the group. annual report About that advocacy activity. “For too long, mortgage brokers have been silent, unorganized, and underrepresented in Washington, DC. We had to partner with the activity company to secure seats as soon as possible.”
The report outlines AIME’s top goals for 2022, including launching a “grassroots advocacy network to amplify the voice of the broker channel” Acquisition” is included.
The group said it will send more than 10,000 “letters of change” to state and federal legislators in 2022 and hold more than 40 meetings with state and federal legislators and government officials.
The report outlines key pain points for AIME in 2023, including persuading more states to offer property tax exemptions to disabled veterans; These include reducing the fees charged on broker-initiated loans and streamlining the VA appraisal and home buying process. Housing loan.
Get Inman’s Extra Credit newsletter delivered directly to your inbox. A weekly roundup of the world’s biggest mortgage and closing news delivered every Wednesday. Click here to subscribe.
Email Matt Carter
