MBA Annual 2022: Day One General Session Recap
The Mortgage Bankers Association’s Annual Convention & Expo is the largest annual gathering of real estate finance professionals. This year, industry innovators and experts gathered from Oct. 23–26 at Music City Center in Nashville and shed light on the many issues and initiatives the real estate industry faces. Here, we’ll boil down the key takeaways, session highlights, and share industry-shaking intel from MBA Annual 2022.
MBA’s first keynote session covered the current state of the market, predictions for the future, and how companies can adapt in these uncertain times. The session kicked off with opening remarks from Kristy Feracho, 2022 MBA chair and executive vice president of home lending at Wells Fargo; Matthew Rocco, 2023 MBA chairman, and chief executive officer and chairman of the board of Grandbridge Real Estate Capital LLC; and Bob Broeksmit, president and chief executive officer of the Mortgage Bankers Association.
Key takeaways:
- A recession is likely imminent in 2023 — While industry-leaders predicted that a recession was all but certain, they pointed out that there are many ways companies and mortgage lenders can prepare.
- The MBA plans to focus on increasing rental affordability in 2023 — Along with enhancing its existing programs like the Building Generational Wealth through Homeownership Initiative and the Home For All Pledge, MBA stressed it was focused on housing affordability.
- The MBA is offering free resources to navigate the market — As the market drops and business-as-usual becomes anything but, MBA has stepped up to offer companies free resources to help them brace against increased market strife.
Session highlights:
Kristy Feracho gave her final speech as the chair of the Mortgage Bankers Association, and reflected on her time as chair and accomplishments, including introducing MBA’s Home For All Pledge and expanding diversity across the industry. In a tearful goodbye, she passed the baton onto 2023’s chair, Matthew Rocco.
When Rocco took the stage, he laid out his road map for the coming year, reassuring attendees that MBA would continue to act as a resource to bankers, lenders, and all members of the association.
“My approach to being chair can be summed up in just two words: servant leader,” Rocco said. “I’ve always listened to every MBA member. I want to know the challenges you face so the MBA can help you overcome them… we want to be your industry-leading resource that helps you achieve success.”
Rocco also touched on the state of the market.
“We know things are tough,” Rocco said. “The future seems more unknown than ever, which I didn’t know was possible after what we’ve been through in the last few years. But if the last few years have taught us anything, it’s that the mortgage bankers association delivers for you. And I intend to strengthen that reputation even further by doubling down on helping your companies and your customers. At the end of the day, servant leadership isn’t just my motto, it’s the essence of the entire MBA.”
Expanding housing affordability is at the forefront of Rocco’s goals for the MBA in 2023. The association will continue to promote and expand two previous initiatives — the Building Generational Wealth through Homeownership Initiative and the Home For All Pledge — to promote inclusion and affordability in housing.
Rocco announced that the MBA will also pursue a “bigger and bolder affordable rental housing strategy.” Rocco’s strategy includes four key initiatives:
- Expand the supply of available housing.
- Build a stronger link between affordable rental housing, rental counseling, and education.
- Bring more diversity to multifamily lending and development.
- Better define and standardize the various “often inconsistent” definitions of affordable housing.
Rocco then introduced Bob Broeksmit, who reassured attendees that the industry would bounce back after the current downturn ends.
“We went from the highest of highs to the lowest of lows in recent memory,” Broeksmit said. “The tough calls you’re making today will help you emerge stronger tomorrow. Our industry is resilient. And make no mistake, we will emerge stronger together.”
Broeksmit cited COVID-related government spending, worker shortages, supply chain issues, the Ukrainian war, and inflation as causes of the current market downturn. He noted that the MBA provides resources to member companies that can help them improve their outlook until the markets improve. The association intends to provide free access to educational webinars and 16 self-study courses to members.
“Our goal is simple: Make sure your teams have the knowledge and know how to find and seize the best opportunities,” Broeksmit said.
After Broeksmit, Allen Middleman, senior vice president at Freedom Mortgage, took the stage to introduce the keynote speakers, A.B. Stoddard and Paul Ryan. Stoddard is an associate editor and columnist at RealClearPolitics. Ryan served as the 54th speaker of the United States House of Representatives from October 2015 to January 2019.
They discussed Ryan’s background in politics, his time as speaker of the house, and the current political landscape.
Ryan predicted a republican majority in the house following the 2022 election cycle. He also predicted that the challenge for a new republican speaker of the house will be navigating the culture war and uniting the party on a common front. With the upcoming retirement of several long-standing republican members of the house, Ryan anticipates less compromise and bipartisanship in the legislative branch.
“Even if your party has both the house and the senate, you still have to unite the party,” Ryan said. “You still have to do deals that involve compromises. And there are a lot of people whose brands are staked on not doing compromises. And that’s going to be a big challenge.”
In the next two years, Ryan expects messaging bills on taxes, economics, and the budget to pass. He anticipates policy on both Ukraine and China to pass, including “decoupling with China, resourcing, and reshoring of supply chains.”
When it comes to inflation, Ryan said politicians can help reduce it by keeping spending under control, ceasing stimulus spending, increasing business tax cuts, and connecting work with welfare benefits.
Ryan, like other analysts, predicted a recession heading into 2023.
“Let’s just get out of the recession — we’re going to have one,” Ryan said. “Let’s get on with it, get it over with, and get it out of the way. If we muck through it, we could have some serious stagflation for a long time. I’d much rather have a two-quarter recession.”
Ryan anticipated that companies will largely pull through and compared the market to a good crop year for farmers.
“When farmers have a good year, they know it’s not always like that,” Ryan said. “They know to average their income and store some money away, because they’ll have a bad crop in a couple years. That’s where all of you are right now. You had a great crop the last couple years, but now it’s going to be a tough slog for a good while… Hopefully, we’re gonna land this thing. But between now and then it’s get your expenses under control, hunker down, and hopefully you are prepared.”
