At this year’s Mortgage Bankers Association’s (MBA) Commercial/Multifamily Finance Convention and Expo in San Diego, MBA President and CEO Bob Broeksmit addressed attendees by pointing out how much has changed in the banking world.
“Our goal, every year, is to help you contribute even more to our economy,” Broeksmit said in his opening remarks. “But this past year was especially important. The start of a new presidential administration is always a bit hectic. But we’ve never seen anything like we saw in 2025. We look at how much has changed, and how MBA has navigated that change and steered a course to help you succeed.”
Broeksmit asked the audience to reflect back to where things stood when MBA gathered for this event last February. The new administration in Washington was barely two weeks old, and everyone was talking about DOGE (Department of Government Efficiency).
He stressed that nobody had any idea what was going to happen or how it would affect one’s businesses and customers. But at the MBA, they knew what they had to do. So, the organization implemented a comprehensive plan to get results.
Broeksmit said one of MBA’s biggest strengths is “building relationships with people who matter,” which is why they have been working with the administration since before Inauguration Day to bring leaders from the commercial, multifamily and residential sectors to speak directly with top officials for serious, solution-focused discussions.
Broeksmit cited the tax reform law as an example of its use relationship-building to accomplish a feat that seemingly happened an eternity ago. But in reality, it’s only been seven months since the law passed and was signed into law, and he noted that MBA “made that happen.”
And he told the group things still weren’t clear by the middle of spring, recalling that the entire tax code was up for revision – every, single part.
“Things like 1031 like-kind exchanges, business interest deductibility, the deduction for passthroughs, carried interest and capital gains were all on the table. Nothing was safe. We had our work cut out for us,” Broeksmit said. “So, the MBA swung into action. We went directly to key leaders in the House and Senate.
“The final law was a big win for two reasons. First, we prevented the elimination of critical tax provisions. Look at the 199(a) deduction. Instead of it shrinking, or disappearing altogether, you now have permanent relief,” Broeksmit added. “What about 1031 like-kind exchanges? No change whatsoever. Ditto the treatment of carried interest and a capital gains differential compared to ordinary income – they both stayed the same. That’s because our message to Congress was: Do no harm. Clearly, that message got through. But we didn’t just stop harmful tax changes. We also secured new and better policies, which is the second reason the tax law is such a big win.”
Broeksmit pointed to the Low-Income Housing Tax Credit (LIHTC) as a good example of the association using its messaging, noting that the 9 percent LIHTC allocations have been permanently raised by 12 percent, while the bond financing threshold has been cut in half. This change will be especially good for underserved parts of the housing market, he said. MBA also successfully pushed for another round of opportunity zones, he added, so there will be even more investment in communities.
Also, the CEO stated that these victories will pay dividends for generations to come. But Broeksmit also focused on one part of the story that showed MBA’s influence in action.
“Shortly before the bill passed, a so-called ‘revenge tax’ was suddenly added. Basically, the U.S. was going to raise taxes on investors from foreign countries that have unfair trade policies. But that would have been a major hit to investment coming from overseas, and sure enough, commercial dealmaking instantly fell because of the threat,” he said. “The MBA saw all of this – and we immediately rallied to prevent this outcome. We told the White House and Congress about the damage enactment would cause. They heard us, and within a matter of days, the revenge tax was gone from the House and Senate bills.
“Tax reform is just one of many areas where we’ve made progress on your behalf. At FHA, the multifamily MIP (mortgage insurance premium) stands out,” Broeksmit went on to say. “When FHA said it was ditching the old green reduction, we said hold on – why not reduce costs for everyone? FHA responded by doing exactly that, with a 25 basis-point MIP for multifamily loans. That’s real relief for multifamily lenders, tenants, and borrowers.”
Broeksmit affirmed that this administration has also been listening to common sense on everything from the radon rule to tenant protections at the government-sponsored enterprises to the small business loan reporting rule, implementing Sec. 1071 of the Dodd-Frank Act, that would have affected lenders across capital sources.
And agencies are no longer making “mountains out of molehills.”
Broeksmit said policymakers are very receptive to what MBA is saying about several regulatory reforms, such as proposals to implement a Basel III capital framework.
“The new Basel III proposal should come out in March. I expect it will reflect our input. Even so, we’ll keep looking at every detail to ensure that it truly works for you. Basel III is too important to get wrong,” he said.
“We’re also focused on insurance costs,” he added. “We know they’re weighing on you and your borrowers. We know the ups and downs of the past few years have been tough to deal with. We’re working with you and your teams to help navigate these challenges – and we’re already taking steps to reauthorize the federal backstop for terrorism risk insurance coverage. Congress is moving a bipartisan proposal that extends the program through 2035. It passed overwhelmingly in committee and will likely reach the House floor in the coming months.”