Prepared Remarks of 2023 MBA Chairman Matt Rocco at the 2022 Annual Convention & Expo
Matt Rocco, 2023 MBA Chairman, and Chairman of the Board and Chief Executive Officer of Grandbridge Real Estate Capital, delivered the following remarks at MBA's 2022 Annual Convention & Expo.
[Please Note: These are prepared remarks. Mr. Rocco may add to or subtract from these remarks during the course of his presentation. Portions of the text may be omitted during the speech.]
INTRO
Thank you, Kristy, for those kind words.
And more importantly: Thank you for all the great work and many accomplishments over the past 12 months.
You were a groundbreaking leader who made the MBA proud, and I will continue what you started over the next 12 months.
We owe you a profound debt-- and we’ll start to repay it right now, with a standing ovation!
It’s a privilege to follow in Kristy’s footsteps. And it’s an honor to help lead the Mortgage Bankers Association for the next year.
As Kristy said, my name’s Matt. I’m CEO of Grandbridge Real Estate Capital, out of Charlotte, North Carolina. I’m a commercial and multi-family guy, for the most part.
But as chair of the MBA, I will represent and serve every member and every aspect of our dynamic industry.
Commercial, multi-family, residential-- we’re all members of the same family. And now more than ever, given these challenging market conditions, all of us in MBA leadership will continue to work hard for you.
My approach to being chair can be summed up in two words. Servant leader.
My goal is to listen to you, and to every MBA member. I want to know the challenges you face, so the MBA team can help you overcome them.
I want to know the opportunities you see, so we can help you make the most of them.
We want to be your industry leading resource that helps you achieve success.
We know these are difficult times. There’s a lot of uncertainty. The future seems even more unknown than usual, which I didn’t think was possible.
Yet-- if the past few years have proven anything, it’s that the Mortgage Bankers Association delivers for you.
I intend to strengthen that reputation even further, by doubling down on lifting up you, 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.
We consistently come through for you. And in the next year, I promise:
We will reach new heights of service and advocacy.
We won’t just represent you.
We’ll continue to deliver on your most important priorities!
My philosophy of servant leadership is grounded in my experience.
Like you, I’ve devoted my life to real estate finance. I’m driven by the desire to do well by doing good.
This isn’t just a job. It’s a calling. And I’ve always aimed to answer that call.
You may be surprised to learn that I wanted a job in our industry when I was just a teenager.
I grew up in a great home, with a great family, and the best possible advantages in life. We were in the right zip code and I had everything going for me.
It ingrained in me a deep sense of responsibility, and a profound desire to empower others.
Even at age 18, I wanted to help people achieve their American Dream-- to find the happiness that is their birthright. That naturally led me to real estate finance.
You and I both know that our industry is foundational for opportunity.
We help families buy that first home.
We help new workers get that first apartment.
We help job creators get their first shot at a storefront.
I constantly think about the difference we make. And when people ask me why I chose this career, my answer is simple: Where else could I do so much for so many people in so many places? Having talked with so many MBA members, I know you feel the exact same way.
My first full-time professional job started in the early 1990s.
Like today, it was a difficult time.
The Savings and Loan crisis left tens of thousands of real estate assets and borrowers in bankruptcy or financial distress.
Thousands of companies had gone belly up, or were well on their way. They left behind millions of hard-hit people, especially the homeowners and businesses they existed to serve.
Honestly, it wasn’t the best time to get my start. But I’ll always be grateful for what I learned.
You see, amid the crisis, I had a crash course in residential and commercial real estate. I saw firsthand why banking, real estate, and businesses struggle so much in difficult times.
But I also saw how to help when the chips are down.
As a real estate investment banker, I played a part in cleaning up some of the biggest messes from the S&L Crisis and the RTC.
I helped protect homeowners and lower income renters by working to positively restructure loans for owners and tenants.
And while working in the real estate and capital markets, I developed a special passion for helping those who are overlooked and underserved… especially the people who need homes, but can’t afford them.
If I learned anything back then, it’s this: When the times are toughest, your teams work the hardest.
And when good times return, it’s only because of your past great work-- We proved it then-- and we’ll prove it now.
I’ll never forget those early years.
And I’ll always be grateful for what I experienced. More than anything else, my first professional experiences inspired me to make affordable housing a cornerstone of my career.
I admit: That may sound strange coming from a commercial and multi-family guy.
But nothing seems more natural to me. I’ve had the good fortune to work at companies that allowed me to pursue my passion for affordable housing.
That includes working as an asset manager, as an owner, and as a capital markets manager on numerous residential, commercial and multi-family assets with a keen focus on all types of affordable housing.
I’ve kept up that momentum at Grandbridge.
I joined the company in 1998, and over nearly 25 years, affordable housing has always been a strategic focus our portfolio.
Today, I estimate that 50% of my job involves affordable and workforce housing, which are really the same thing.
I’d like to thank all my colleagues at Grandbridge for their hard work on these tough issues. It’s a privilege to work with such a talented, mission-driven team!
My passion for affordable housing is the core of my vision as MBA chair.
I have made this issue my top priority, and in the next 12 months, my goal is to help all of us expand affordable housing like never before.
We all know why this issue matters. Affordable housing is essential to the future of our industry, our communities, and ultimately, our country.
The simple fact is that people are hurting right now.
As we gather here, a staggering 49% of Americans say the lack of affordable housing is a huge problem where they live.
What’s more, at least 30% of families spend about a third of their income or more on housing.
And one in seven households spends at least half of every dollar they earn on the roof over their head.
Millions of families now find it impossible to live close to work, because housing costs too much.
By the same token, tens of thousands of businesses are finding it harder to recruit people, because many can’t afford the cities they’re based in.
And by spending more on housing, hardworking people have less to devote to other necessities.
Their children’s education.
You name it.
The lack of affordable housing is quite literally holding America back.
The only good news is that the situation would be even worse if it weren’t for you. Your companies have devoted significant time, talent, and treasure trying to lower costs.
Your work has borne fruit, and you should be proud.
But it’s also true we can do a lot more. The good news is that we’re building on a remarkably strong foundation. Both of my predecessors have prioritized this issue, in different ways. And both made phenomenal progress.
Under Susan Stewart’s leadership, we launched the “Building Generational Wealth Through Homeownership” initiative.
It was the biggest public commitment we’d made to date on this crucial issue.
Under Kristy Fercho, we were even bolder. She pioneered the “MBA Home for All Pledge.” It gave every MBA member a pathway to get involved and make a difference. If your company hasn’t signed it already, they should.
Honestly, I’m still floored by the overwhelming response from members like you. Almost 400 MBA member companies and counting have signed the pledge.
We said now is the time-- and you said you can count on me. Thank you!
I couldn’t be more grateful for Susan and Kristy’s leadership on this issue. I intend to build on their game-changing efforts.
It is in that spirit that I’m pleased to announce my flagship initiative.
The Mortgage Bankers Association will pursue a bigger and bolder Affordable Rental Housing Strategy.
It reflects the essential role of renting in our society and builds upon the affordable housing efforts set forth by the Building Generational Wealth Through Homeownership Campaign and the Home for All Pledge.
I firmly believe it will benefit every member of our industry, including residential.
The Affordable Rental Housing Strategy is built on several key pillars.
First, we’ll expand our existing efforts to increase the supply of housing.
We’ll focus on policies, programs, and practices, using a whole-of-industry and whole-of-society approach. There’s no shortage of opportunities to provide more affordable housing.
Second, we’ll forge a stronger link between affordable rental housing and rental counseling and education.
These programs are a proven means to helping tenants succeed in the long run, and they can provide a path for renters to become successful homeowners much more quickly.
The third pillar is growing the ranks of minority professionals in multifamily lending and development.
This builds on our longstanding work to promote industry diversity, which as Kristy often said, is the right thing to do, and the smart thing to do.
A more diverse workforce will find better ways to deliver affordable housing to diverse communities.
The fourth and final pillar of the Strategy is to better define and standardize the various and often inconsistent definitions of affordable multifamily and workforce housing which will allow us increase targeted investment in affordable housing and support a wider community of renters and potential homeowners.
I couldn’t be more excited to see MBA implement this strategy.
I envision a new era of public-private partnerships that bring affordable rental units to the masses. I foresee renewed coalition building with other stakeholders, giving our advocacy efforts an extra punch.
And I anticipate a new standard of innovation, as we offer exciting policy proposals and expand our local efforts, like CONVERGENCE.
Most of all, I’m confident this strategy will serve the interests of every MBA member. Think about it.
What starts with renting doesn’t stop there. If we can help more families into affordable rental properties, they can establish a stronger credit profile for a future mortgage.
And if we can help more families save money as renters, they’ll have more resources to buy their first home.
By pursuing this strategy, we can promote a culture of homeownership for generations to come.
Every MBA member can support our Affordable Rental Housing Strategy, and I hope you will.
For members who haven’t signed the Home for All pledge, and you only have to sign it once, it can serve as your access point.
Even if you are a residential lender, you can lend your voice to our advocacy efforts for policies and programs that expand affordable housing.
You can expect more details in the days ahead. For now, I will simply say this: We have a chance to empower today’s renters, tomorrow’s homeowners, and the everyday communities in which we live.
My commitment to this cause stems from my promise to be a servant leader. And it provides all of us with a chance to be servant leaders for our communities.
As we get ready for the year ahead, I promise to support you and strengthen you, in all I do.
In my experience, good leadership starts with good listening, so I’d love to hear from as many of you as possible.
I’ll be traveling the country to meet with our members.
If you have questions, please ask.
If you have concerns, please share.
And if there’s any way the MBA can help you, please tell me, and we’ll do everything in our power to meet your needs and help you succeed.
One thing’s for sure:
We have a lot to do.
There are barriers to break and challenges to beat. It won’t be easy, but as I’ve seen time and again, our hard work always pays off.
I have faith we’ll prove it once again, as together, we make progress on every front.
Thank you for the honor of serving you as chair. And thank you for who you are, and what you do, in the MBA and across America.
And now, it’s my honor and privilege to bestow an award presented in recognition of dedication and prominent service to MBA, and the mortgage lending industry at large.
The Andrew D. Woodward Distinguished Service Award is the highest honor an individual can receive from his or her fellow MBA members.
It is named in honor of former MBA Chairman and industry leader, the late Andy Woodward, who set an extraordinary example with his leadership.
Nominees for this award must have a long record of sustained and extraordinary service to MBA and the mortgage lending industry and have a strong reputation for ethical and professional conduct.
This year’s recipient has all the above, and much more.
As the leader of her organization for almost 20 years, she has been a dedicated champion for our industry and a tireless leader who has been at the forefront of numerous national, state, and local-level advocacy campaigns that have yielded favorable results for her members.
She has been a relentless advocate for MBA and its advocacy programs-- the Mortgage Action Alliance and MORPAC.
She has helped MBA grow our National Advocacy Conference and is a presence every year, consistently serving as a state leader for her delegation during Advocacy Day on Capitol Hill.
In her home state, she has led nearly every advocacy campaign for almost twenty years, fiercely fighting to ensure that our industry has the ability to operate in a safe and sound manner to offer sustainable mortgage credit to our borrowers and customers.
As states and localities have become the primary battleground for policy and regulation in recent years she has been at the tip of the spear, one of our greatest allies and advocates on issues like rent control and local property tax issues.
In just the last year alone, she led a campaign against applying the Community Reinvestment Act to non-banks and IMBs and fought the creation of an unworkable new foreclosure process for residential properties.
She was a leader in helping the industry navigate the challenges brought on by the COVID-19 pandemic, including defeating legislation that would have had negative impacts on residential and multifamily lenders during the foreclosure moratorium.
As I mentioned earlier, I consider myself a “servant leader” and she is certainly cut from the same cloth.
It is my great pleasure to present the Andrew D. Woodward Distinguished Service Award to the Chief Executive Officer of the California Mortgage Bankers Association, Susan Milazzo.
And now, I am honored to introduce our next speaker.
Bob Broeksmit is a senior finance executive with a 37-year career in the mortgage sector and has directed all aspects of lending activities, including marketing, sales, operations, secondary marketing, loan servicing, and default management.
He’s just completed his fourth year at the helm of MBA, and has done a tremendous job, leading our association through the pandemic and making sure the organization is focused every day, delivering value for our members.
Ladies and gentlemen, please welcome MBA’s President and CEO Bob Broeksmit!