Advocacy Update: FHFA Director Bill Pulte Makes Significant Changes at FHFA and GSEs
FHFA Director Bill Pulte Makes Significant Changes at FHFA and GSEs
Following his confirmation, Federal Housing Finance Agency (FHFA) Director Bill Pulte has made several moves to reshape the agency as well as the leadership at Fannie Mae and Freddie Mac (the GSEs).
• MBA is aware of personnel in multiple departments at FHFA being put on administrative leave. Effective March 17, several members of the GSEs’ Board of Directors were removed and new members were added, including Director Pulte who will serve as Chairman of both boards.
• There are ongoing changes to the GSEs’ C-suite and senior leadership teams. At Freddie Mac, Mike Hutchins will now serve as Interim CEO (replacing former CEO Diana Reid).
Why it matters: MBA expects more personnel moves at FHFA and the GSEs in the near future and will keep members informed of any relevant developments. As we monitor this period of reorganization, MBA will continue to focus on the list of key policy issues delivered to FHFA last week, including:
• Ensuring any efforts to release the GSEs from conservatorship protect against market disruption and preserve the level playing field;
• Maintaining recent amendments rescinding the product and cash window caps;
• Rethinking of the two-credit score and bi-merge project to ensure consumers will benefit;
• Rescinding a recent FHFA advisory bulletin calling on the GSEs to conduct consumer compliance exams;
• Ensure pipeline protection on policy and pricing changes; and
• Fine-tune multifamily loan programs
What’s next: MBA will remain engaged with senior leadership at both FHFA and the GSEs and will work to ensure business continuity for members.
For more information, please contact Sasha Hewlett at (202) 557-2805.
MBA, Trades Provide Recommendations for FHFA’s Credit Score Models and Reports Initiative
Last week, MBA and several trades sent a letter to FHFA with recommendations for its ongoing Credit Score Models and Reports Initiative. After launching more than two years ago, the initiative, as currently defined, is overly complex, costly to consumers, and missing key requirements that are necessary for a successful transition.
Go deeper: The letter urges FHFA leadership to reevaluate portions of the initiative to make successful progress towards credit score modernization for the GSEs. Five critical steps are required in order to establish a viable implementation plan:
• Commit to data transparency and sharing;
• Conduct a cost/benefit analysis and operational impact assessment;
• Re-evaluate the bi-merge option;
• Coordinate with prudential regulators; and
• Align with government lending programs
Why it matters: The implementation of the new credit score models, and a transition to bi-merge, has multiple and wide-raging impacts. A well-coordinated and appropriate execution strategy is needed to minimize disruption to the housing finance system.
What’s next: MBA will continue to work with incoming leadership at FHFA and other trade associations to establish a workable implementation plan to ensure that unintended consequences are mitigated and that costs, complexity, consumer impact, and policy implications are taken into consideration throughout this initiative.
For more information, please contact Sasha Hewlett at (202) 557-2805.
Attend MBA’s National Advocacy Conference on April 8-9; Over 500 Advocates Registered
Join us in Washington, D.C. to meet with key policymakers, network with colleagues across the industry, and hear from policy experts on the topline issues impacting the industry. Key advocacy issues to be covered will include housing tax policy, trigger leads, the potential for a Fannie/Freddie conservatorship release, legislation to increase housing supply, technology-related issues, the cost and availability of insurance, and more.
Currently scheduled speakers for the conference include HUD Secretary Scott Turner, GOP Conference Chair Congresswoman Lisa McClain (R-MI), key Senate Banking Committee members Elizabeth Warren (D-MA) and Mark Warner (D-VA), key House Financial Services Committee members Mike Flood (R-NE), Ritchie Torres (D-NY), and Emmanuel Cleaver (D-MO), and National Journal’s managing editor of Hotline Kirk Bado.
An exclusive reception will be held on Tuesday, April 8, at the Renwick Gallery of the Smithsonian American Art Museum. Lend your voice to our efforts and bring your expertise and experiences to the table.
• Check out MBA’s group passes pricing.
Why it matters: Your participation at NAC ensures that members of the 119th Congress and the administration will better understand how proposed legislation affects your customers, as well as your employees and the communities you (and they) serve.
What’s next: MBA will use your participation during NAC25 to help amplify its advocacy on issues – both residential and commercial/multifamily – that directly impact our industry.
For more information, please contact Jamey Lynch, AMP, at (202) 557-2818.
Federal Reserve Keeps Rates Unchanged
The Federal Reserve held the federal funds rate at a target range of 4.25-4.50% on Wednesday.
Read more of MBA SVP and Chief Economist Mike Fratantoni’s commentary here.
For more information, please contact Mike Fratantoni at (202) 557-2935.
FHA Reverses Reconsideration of Value Policy
Last week, the Federal Housing Administration (FHA) issued Mortgagee Letter 2025-08, rescinding recent policy changes related to its Reconsideration of Value (ROV) process. The letter eliminates the borrower-initiated ROV process and restores prior policy, placing the responsibility for initiating an ROV on a mortgagee.
Go deeper: Mortgagees may request an ROV when the appraiser did not consider information that was relevant as of the appraisal’s effective date. In such cases, mortgagees must provide all relevant data to the appraiser. Appraisers are permitted to charge an additional fee if the relevant data was not available at the time of the original appraisal. However, borrowers cannot be charged for this fee unless the unavailability of the data was due to their own actions.
What’s next: MBA expects FHFA to adjust its policies for the GSEs to align with FHA. MBA will continue to provide updates on this issue through the Residential Loan Production Committee.
For more information, please contact Darnell Peterson at (202) 557-2922.
USDA Ends Home Loan Eligibility for Some Non-U.S. Citizens
On Tuesday, the Department of Agriculture (USDA) announced it is ending a temporary policy that allowed certain non-U.S. citizens to apply for home loans through the Rural Housing Service.
• This special eligibility, which began on April 29, 2022, officially ended on March 18, 2025.
Go deeper: During this period, some non-U.S. citizens, including certain DACA recipients, had been eligible to apply for a USDA-guaranteed loan if they met specific criteria, such as lawful presence in the U.S. and other program requirements.
Why this matters: The termination of temporary USDA loan eligibility for DACA recipients aligns with the Trump administration’s broader agenda to restrict federal benefits for individuals without permanent legal status.
What’s next: MBA expects the FHA and FHFA to adjust their policies to align with USDA. MBA will continue to provide updates on this issue through the Residential Loan Production Committee.
For more information, please contact Darnell Peterson at (202) 557-2922.
MBA Files Amicus Brief with Supreme Court Addressing “Uninjured” Class Members in Class Action Lawsuits
On March 12, MBA submitted a joint trades Amicus Brief in Laboratory Corp. of America v. Davis with the U.S. Supreme Court. While the case is not mortgage related, the Supreme Court will decide “[w]hether a federal court may certify a class action pursuant to Federal Rule of Civil Procedure 23(b)(3) when some members of the proposed class lack any Article III injury.”
Go deeper: Some Circuits recognize that since a concrete injury is a threshold requirement to get in the federal courthouse door, then uninjured plaintiffs, who could not get through the door suing individually, should not be permitted to litigate as members of a class, either. Other Circuits, including the Ninth (from which Laboratory Corp. originates), allow courts to certify class actions even when it is undisputed that class members with no injury stand to recover windfall damages.
• This case could have a significant impact in reducing burdensome class action cases faced by MBA member companies.
• Essentially, a favorable ruling in this case would require courts to filter out “uninjured” class members far earlier than they do currently. While it is accepted that a class member that does not have a concrete injury (beyond a statutory injury) is not eligible for relief, the fact that some courts do not conduct the inquiry until after class certification creates immense coercive pressure to settle and is an abuse of the court’s jurisdiction.
Why it matters: This is a high-stakes issue given the frequency of class action litigation in the mortgage banking industry. As heavily-regulated entities subject to an array of consumer-protection statutes, IMBs, banks, and credit unions routinely risk massive liability in class actions for technical violations that produce no harm. Similarly, many suits are brought by named plaintiffs with dramatic claims of harm (like homes lost to foreclosure) but seek to represent others with no such harm.
• The MBA-led amicus brief demonstrates that the current inequitable rules have created real harm for those that are forced to litigate class actions. Moreover, in light of the perception of relaxed federal enforcement of consumer financial laws, it is anticipated there will be an increase in class actions from private plaintiffs. This case provides a great opportunity to rationalize the class certification rules now.
What’s next: MBA would like to thank the team at Goodwin for preparing this Amicus Brief. MBA will monitor and inform members when a decision is reached.
For more information, please contact Justin Wiseman at (202) 557- 2854 or Alisha Sears at (202) 557-2390.
Mississippi Enacts Remote Work Consistent with MBA Model
Last week, Mississippi Governor Reeves signed SB 2508, which authorized remote work for mortgage loan originators (MLOs). SB 2508’s language follows MBA’s model state law and regulation to allow remote work flexibilities as well as provides the Department of Banking and Consumer Finance the necessary fee increases it says are needed to ensure appropriate funding to continue supervision with this change.
Go deeper: For new MLOs the initial licensing fee increases from $200 to $300, and renewals increase from $100 to $150. New mortgage lender licensing increases from $1,500 to $2,000, while renewals increase from $1,000 to $1500. Initial Branch licensing increases from $300 to $500, while renewals increase from $100 to $350.
Why it matters: Now, 31 states and D.C. have enacted policies aligned with MBA’s model to permanently allow MLOs to work from a remote location.
What’s next: MBA will continue to work with its partner state associations to support remote work policies consistent with the association’s model.
For more information, please visit the remote work policies resource center or contact William Kooper at (202) 557-2737 or Liz Facemire at (202) 557-2870.
MBA, CMBA Respond to CA Carbon Emissions Requirements Proposal
Friday, MBA and the California MBA (CMBA) responded to a request for comment from the California Air Resources Board (CARB) on carbon emissions disclosures. Pursuant to several laws passed in California, CARB is seeking information on how to implement disclosures for companies operating in the state.
Go deeper: CARB proposes requiring companies doing business in California to meet certain thresholds to report on their Scope 1, 2, and 3 emissions, climate risks, and voluntary carbon offsets. MBA and CMBA’s response urged flexibility in reporting requirements, and for limited requirements for Scope 3 emissions.
Why it matters: Scope 3 emissions (or indirect greenhouse gas emissions) are still an evolving concept, and such emissions information is likely to add little to no value in providing decision-useful information about a company’s climate-related risk.
What’s next: MBA will continue to advocate for flexible reporting requirements that do not unduly burden lenders.
For more information, please contact Megan Booth at (202) 557-2740 or William Kooper at (202) 557-2737.
Maryland Legislature Passes Bills to Address Trust Licensing Issue; Advocacy Continues to Resolve Remaining Issues
On Monday, two MBA-supported bills (SB-1026 and HB-1516) passed their respective chambers of introduction ahead of a critical procedural deadline.
The bills aim to address the Maryland Office of Financial Regulation’s (OFR) January 10, 2025, guidance and emergency regulations stemming from the Estate of Brown v. Ward court ruling. The legislation is supported by OFR, which extended the enforcement deadline to July 6, 2025, following efforts by an MBA-led coalition.
Why it matters: The OFR’s initial policy interpretation significantly expanded the court’s opinion to include mortgage trusts, raising urgent concerns for secondary mortgage market participants. The proposed legislation would create necessary licensing exemptions in state law. Mortgage Action Alliance (MAA) members in Maryland have been actively urging their representatives to expedite the consideration and enactment of this legislation. Also, an industry coalition submitted a letter to OFR in January, strongly encouraging the rescission of its guidance and regulations.
What’s next: There continues to be discussion with policymakers regarding the scope of the licensing exemptions, and MBA and the Maryland Mortgage Bankers and Brokers Association (MMBBA) are working with member companies and industry association partners to advocate for a swift completion of these discussions and final approval before the end of the 2025 legislative session – currently scheduled for April 7th. This will likely require amendments to the bill that necessitate reconsideration by each chamber. If you are a Maryland MAA member please take action here.
For more information, please contact William Kooper at (202) 557-2737 or Justin Wiseman (202) 557-2854.
mPower Moments: On Being Solutions-Oriented with MBA’s Dawn Williams
mPower Founder Marcia M. Davies sits down with Dawn Williams, MBA’s Associate Vice President of Program Development, for an in-depth conversation on her career journey as well as MBA’s conference programming strategy.
Go deeper: Williams also discusses the importance of identifying relevant industry topics to ensure that conference attendees are up to date on key issues that are impacting their organizations and the real estate finance industry. Additionally, Willams also shares her strategy on how she’s able to remain calm and collected when working through challenges.
To watch more mPower Moments, click here.
For more information, please contact Marcia Davies at (202) 557-2707.
Upcoming MBA Education Webinars on Critical Industry Issues
MBA Education continues to deliver timely single-family programming that covers the spectrum of challenges, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars – all complimentary to MBA members:
• Drilling into Mortgage Accounting – April 9
• AI Voice Agents and Use Cases for Mortgage Lending – April 10
• Loan Level Accounting – April 16
• Social Media Compliance: Identifying Potential RESPA Violations in Digital Advertising – April 22
• Tech Trends Shaping the Future of Mortgage Lending – May 13
MBA members can register for any of the above events and view recent webinar recordings by clicking here.
For more information, please contact David Upbin at (202) 557-2931.
