MORPAC 2018 Year-End Report
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SAFEGUARDING THE REAL ESTATE FINANCE COMMUNITY MORPAC 2018 Year-End Report MORPAC is the voluntary, non-partisan Political Action Committee (PAC) of the Mortgage Bankers Association (MBA). It is the only PAC that directly represents the interests of the real estate finance industry in our nation’s political system. MORPAC raises personal, voluntary contributions from eligible industry professionals to support election efforts of qualified federal candidates whose views and voting records reflect the interests of MBA and its members. 19962 MBA.ORG/MORPAC TABLE OF CONTENTS MORPAC Chair Letter 3 Mortgage Action Alliance (MAA) Chair Letter 4 MORPAC 2018 Election Cycle Stats 5 MAA 2018 Stats 6 2017–2018 Cycle MBA Advocacy Highlights 7 Burton C. Wood Legislative Service Award Winner 9 Schumacher-Bolduc Award Winner 9 MORPAC 2017-2018 Steering Committee 10 MBA Legislative and Political Affairs Staff 10 Get Involved Today 11 2018 MORPAC Contributors 16 2018 MORPAC Company Campaigns 33 2017–2018 MORPAC Disbursements 34 MORPAC CHAIR LETTER The Mortgage Bankers Association (MBA) continues to be among the most sophisticated and effective trade associations in Washington, DC and that is in no small part because of your continued support of MORPAC, MBA’s political action committee. Due to your support, MORPAC, set single-cycle and single-year fundraising records during calendar years 2017 and 2018. Since January 2017, MORPAC raised over $2.1 million in individual donations — with almost $1.2 million raised in 2018 alone! We are pleased to share our 2018 MORPAC Year-End Report that details our campaign’s progress through December 31, 2018 in the 2018 election cycle. As a show of gratitude to our dedicated contributors, this report lists all of the individuals and companies who have been a part of our 2018 campaign. In addition, we’ve highlighted advocacy and policy wins our political programs have been able to help support in the past year. In 2018, MORPAC recruited 570 new contributors — a 70% increase over 2017. Over 20 companies ran a MORPAC campaign in 2018, including nine companies and one state association during the inaugural MORPAC Action Week. These efforts kept MORPAC ranked among the top-20 trade association PACs in the country, in both fundraising and contributions to federal candidates. MORPAC is an essential advocacy tool that supports election efforts of qualified candidates whose views and voting records reflect the interests of MBA and its members. MORPAC allows us to build and strengthen our political clout among key elected officials in both congressional chambers and across the political spectrum. Unlike Super PACs, MORPAC is funded entirely through voluntary contributions from people like you. Every member of MORPAC has joined a team of dedicated industry professionals that drive and support the real estate finance industry. We hope that you will see the great steps we are taking with our political action committee and on our legislative and political priorities. None of this is possible without your involvement in MORPAC and your continued support is imperative to our success. Together, we made the 2017–2018 fundraising cycle the finest in MBA’s history. We hope you will take time to review the report and continue to stay involved with MBA’s Advocacy Programs and fight for our industry. We appreciate and thank you for your dedication to MBA, MORPAC and our collective public policy goals. Sincerely, Rick Arvielo Eddy Perez, CMB CEO, New American Funding President, Equity Prime Mortgage 2017–2018 MORPAC Chairman 2019–2020 MORPAC Chairman MORPAC 2018 YEAR-END REPORT PAGE 3 MAA CHAIR LETTER A strong MORPAC is essential, but the Mortgage Action Alliance (MAA) is our best way to educate policymakers at the federal and state level on issues that impact our members. MAA is the only free grassroots lobbying organization representing the interests of the entire real estate finance industry in Washington, DC and state capitals across the country. MAA is the best vehicle we have to put collective pressure on our elected officials to do the right thing for our industry when it is most important. Federal and state governments continue to play an increasingly large role in our industry, which ultimately impacts our businesses. Through direct grassroots advocacy and relationship building, MAA enables you to play an active role in the creation of laws and regulations affecting your livelihood. Successful advocacy often boils down to a numbers game and we need more voices speaking on our behalf to make policymakers pay attention. Like MORPAC, MAA broke records in the 2018 election cycle. Under the leadership of the 2017–2018 MAA Chairman Gene Lugat, MAA increased its membership by over 76% with over 27,000 industry-wide active members and counting. We’ve had more than 3,200 downloads of the MAA mobile app since launch and saw a 350% increase in communications to Congress. In fact, our advocates sent over 50,000 letters and tweets to Congress in the 2018 election cycle to 95% of House and Senate offices on key issues. We are pleased to be featured in the 2018 MORPAC Year-End Report and are happy to highlight the companies who have played a major role in our record-breaking cycle. Targeted online fundraising for MORPAC to this growing group of MAA advocates continues to be a significant source of new dollars (often in smaller increments). We hope that you will see the great steps we are taking with our grassroots advocacy efforts, which support broader legislative and political priorities of the MBA and its members. We hope you will take time to review the report and continue to stay involved with MBA’s Advocacy Programs and fight for our industry. We encourage your staff, team members and industry colleagues to sign up and get active in MAA. Every voice counts and we need yours. Sincerely, Gene M. Lugat Jeffrey C. Taylor Executive Vice President, PrimeLending Co-Founder & Managing Director, Digital Risk 2017–2018 MAA Chairman 2019–2020 MAA Chairman MORPAC 2018 YEAR-END REPORT PAGE 4 MORPAC 2018 ELECTION CYCLE STATS AS OF DECEMBER 31, 2018 Since January 2017, MORPAC raised more than $2.1 million IN HARD DOLLARS IN THE 2017–2018 CYCLE. In 2018 alone, MORPAC raised nearly MORPAC raised $1.2 million $318,117 IN PERSONAL CONTRIBUTIONS. IN NEW DOLLARS IN 2018 Other interesting statistics about our 2017–2018 cycle: $1,038 2,045 $52,904 AVERAGE $ CONTRIBUTION UNIQUE CONTRIBUTORS AMOUNT OF SOFT DONATIONS PER DONOR TO MORPAC (SINCE JANUARY 1, 2017) 2018 MORPAC OTHER dollars came COMMERCIAL RESIDENTIAL from all areas of the industry MORPAC 2018 YEAR-END REPORT PAGE 5 MAA 2018 STATS AS OF DECEMBER 31, 2018 3,220 95% 2 DOWNLOADS OF OF HOUSE AND SENATE OFFICES COMPANIES WITH OVER 1,000 MAA MOBILE APP CONTACTED ON KEY ISSUES MAA MEMBER EMPLOYEES 27,000 30,000 4,000 MAA MEMBERS, LETTERS AND TWEETS SENT FOLLOWERS ON 76% INCREASE OVER 2016 TO ELECTED OFFICIALS, SOCIAL MEDIA 150% INCREASE OVER 2017 COMPANIES WITH LARGEST NUMBER OF MAA MEMBERS AS OF 12/31/2018 # MAA # MAA COMPANY MEMBERS COMPANY MEMBERS 1,847 488 1,788 442 914 421 836 418 533 253 MORPAC 2018 YEAR-END REPORT PAGE 6 2017–2018 CYCLE MBA ADVOCACY HIGHLIGHTS Over the past two years, MBA has worked relentlessly on behalf of our members and the industry at large. Below are key highlights of our efforts, emphasizing where we have made progress for you on at the federal and state level. Your advocacy makes a difference. 1 SECURING KEY TAX PROVISIONS engaged on Capitol Hill, educating lawmakers and provid- Due to MBA’s advocacy, H.R. 1, the final tax bill passed by ing congressional testimony on GSE reform. This effort Congress (now P.L. 115-97), included essential provisions culminated with MBA President and CEO Bob Broeksmit’s that preserved deferred tax treatment for mortgage ser- testimony before the House Financial Services Committee vicing rights (MSRs) and prevented adverse changes to at the December 21, 2018 hearing, “A Legislative Proposal capital gains rollovers on the sale of principal residences. to Provide for a Sustainable Housing Finance System: The We protected key tax provisions including business interest Bipartisan Housing Finance Reform Act of 2018.” The hear- deductibility, like-kind exchanges, the mortgage interest ing focused on the discussion draft released by outgoing deduction and the low-income housing tax credit. MBA Chairman Jeb Hensarling (R-TX) and retiring Rep. John continues to advocate with the Treasury Department and Delaney (D-MD). IRS for appropriate regulatory implementation of the tax legislation, including the scope of the pass-through deduction on qualified business income. 4 PREVENTING ADVERSE CONSEQUENCES TO THE RENTAL HOUSING MARKET Due to MBA’s advocacy and other industry efforts, California 2 ENSURING ECONOMIC GROWTH, REGULATORY ballot initiative Prop 10 was defeated, which will prevent RELIEF AND CONSUMER PROTECTION local jurisdictions in California from adopting counterpro- MBA’s advocacy efforts ensured that S. 2155 (now P.L. 115-174) ductive rent control ordinances that would discourage passed with numerous key mortgage provisions, including: rental housing development and limit the availability of affordable rental housing in the state. MBA also advo- • SAFE Act amendments that require the cated for important changes to Davis-Bacon split wage states to provide transitional licensing decisions that jeopardize the development of affordable authority for mortgage loan originators rental housing. • Provisions to protect veterans from certain abusive