MBA Advocacy Update: MBA Supports Full HVAC Partial Claim Authority Bill Passage
MBA Supports Full HVAC Partial Claim Authority Bill Passage
On Tuesday, the full House Veterans’ Affairs Committee (HVAC) advanced H.R. 1815, the VA Home Loan Program Reform Act, with bipartisan support. The bill creates permanent authority for the VA to offer partial claims, bringing the program into alignment with the Federal Housing Administration’s (FHA) and Fannie Mae and Freddie Mac’s loss mitigation servicing options.
MBA’s Chief Lobbyist Bill Killmer sent a letter in advance of the markup in support of the adoption of a permanent partial claim option for the VA Home Loan program.
A VA partial claim program is needed now more than ever to help veterans avoid foreclosure and maintain homeownership stability following the recent winddown of the Veterans Affairs Servicing Purchase Program (VASP) program.
A full summary of the markup may be found here.
Go deeper: The Committee adopted a bipartisan amendment from Chairman Mike Bost (R-IL) and Ranking Member Mark Takano (D-CA) to refine the partial claims framework and included the following improvements recommended by MBA:
• Clarifying that a partial claim shall not diminish the guaranty on an existing VA loan;
• Eliminating the proposed charging of interest on the partial claim balance;
• Ensuring alignment with FHA and GSE program structures that treat partial claims or loan deferrals as non-interest-bearing junior liens;
• Replacing the fixed sunset date with a rolling five-year period post-enactment, which increases predictability for servicers and allows more borrowers to benefit from the program; and,
• Increasing the maximum claim amount from 25% to 30% of the unpaid principal balance, providing parity with FHA and a broader safety net for distressed borrowers.
A separate amendment proposing a foreclosure moratorium during program rollout was defeated on a party-line vote.
What’s next: MBA will continue to advocate for a permanent partial claim solution as H.R. 1815 heads to the House floor for further consideration – as well as the introduction and consideration of a companion Senate bill.
For more information, please contact Madisyn Rhone at (202) 557-2741, Rachel Kelley at (202) 557- 2816.
CFPB Rescinds Dozens of Guidance Documents
On Friday, the Consumer Financial Protection Bureau (CFPB or the Bureau) announced that it is withdrawing a total of 67 guidance documents, including 13 advisory opinions (AOs), eight policy statements, and seven interpretative rules. The CFPB said its leadership conducted a review and determined it will withdraw guidance materials to “afford staff an opportunity to review and consider (1) whether the guidance is statutorily prescribed, (2) whether the interpretation therein is consistent with the relevant statute or regulation, and (3) whether it imposes or decreases compliance burdens.”
• The Bureau also stated that it’s withdrawing guidance because of President Trump’s directives to deregulate and streamline bureaucracy, and therefore not having a pressing need for interpretive guidance to remain in effect.
• The Bureau noted that “while some guidance might be reissued in the future, the Bureau does not intend to prioritize the enforcement of such guidance against parties that do not conform to the guidance during the pendency of any withdrawal.”
Why it matters: Following the CFPB’s April 11 memorandum announcing a comprehensive review and rescission process (which MBA supported), MBA shared a compilation of existing policy statements, interpretative rules, advisory opinions, and other guidance materials that should be retained with respect to the mortgage industry. It appears that all of those items were retained.
A list of all guidance documents withdrawn can be found starting on page four, including several pertinent to real estate finance.
What’s next: MBA will conduct a more exhaustive review of today’s announcement and will share its analysis.
For more information, please contact Justin Wiseman at (202) 557- 2854 or Alisha Sears at (202) 557-2390.
Republicans Inch Closer to Reconciliation/Tax Policy Debate
Lawmakers on the House Energy and Commerce (E&C), Ways and Means, and Agriculture Committees will meet next Tuesday afternoon for their highly-anticipated budget reconciliation markups in a sign that GOP leaders may be making headway on some of the last remaining disagreements delaying work on a major congressional tax, national security, energy, and border security package.
• Among the issues that still need to be resolved is the expiring $10,000 cap on the deduction for state and local taxes (SALT). Republicans in New York, California, and New Jersey have been adamant about raising the $10,000 threshold as the GOP looks to renew the expiring Tax Cuts and Jobs Act (TCJA) before year’s end. Meanwhile, discussions regarding reduced Medicaid spending (and other public benefit programs) are expected to continue through the weekend ahead of the E&C and Agriculture markups next week.
Why it matters: The Ways and Means proposal will mark the first public reveal of the House GOP’s blueprint for extending major portions of the TCJA prior to year’s end – and which “revenue raisers” will be included in the package to (at least partially) cover some of the cost of extending key provisions. MBA and other real estate coalition partners have been fighting to preserve current tax code elements that help maintain an appetite for investment in real estate – both commercial/multifamily and residential. President Trump (and his key economic advisors) have been in close contact with GOP leaders the last few days.
What’s next: Once the remaining House committee actions conclude, leaders will pursue their goal to debate – and pass – a combined package of spending and tax provisions prior to Memorial Day. The Senate will follow suit and craft its own version of a reconciliation package – should House leaders muster the majority needed to move a bill forward.
• MBA staff (with guidance from the association’s Board-appointed Tax Task Force) will continue to engage with lawmakers and their key staff to advocate for our industry’s tax priorities throughout the remainder of the debate.
For more information, contact Bill Killmer at (202) 557-2736.
White House FY 2026 “Skinny Budget” Released
Recently, the Trump administration released an outline of its Fiscal Year 2026 (FY26) budget proposal. Each year, the President’s budget request, otherwise known as its “wish list,” provides a blueprint for the Administration’s priorities as Congress traditionally kicks off its appropriations process for the new fiscal year.
As expected, the budget highlights several spending reductions and program terminations, including:
• Reducing non-defense discretionary spending by $163 billion (23%) from the 2025 enacted level.
• Savings come from eliminating DEI and climate initiatives, and “moving programs that are better suited for States and localities to provide.”
• Defense spending would increase by 13%, and appropriations for DHS would increase by nearly 65% to focus on border security matters.
Why it matters: Of note, the Administration is requesting a significant, $43.5-billion cut (43.6%) in discretionary budget authority for the Department of Housing and Urban Development (HUD), including moving housing vouchers to a state-budget based formula, requiring a two-year limit on rental assistance, and zeroing out the CDBG and HOME programs. The Budget Proposal would also cut $721 million from Rural Development, including eliminating rural housing vouchers.
• The particularly high-level budget proposal contained no references to homeownership or information on FHA, Veterans Affairs (VA), and Ginnie Mae commitment authorities or administrative initiatives.
What’s next: MBA is engaging with the Administration, Congress, and leaders at the federal housing agencies on FY 2026 appropriations and has been encouraged by their receptiveness and commitment to maintaining and/or promoting new effective solutions that bolster housing supply, improve affordability for both renters and borrowers, increase access to sustainable homeownership, and lead to positive outcomes for MBA members and their businesses.
• Additional details, as well as key supplemental materials – such as the “Analytical Perspectives” report that often contains discussions of longer-term policy priorities – should be released in the weeks ahead. MBA will report on additional budget details as they become available.
For more information, please contact Bill Killmer at (202) 557-2736 or Pete Mills at (202) 557-2878.
Senate Banking Committee Advances HUD Nominees Hughes, Woll; Fed Vice Chair Nominee Bowman
On Tuesday, the Senate Banking Committee advanced the nominations of Andrew Hughes to be HUD Deputy Secretary and David Woll to be HUD General Counsel. The Committee also advanced the nomination of Michelle Bowman to be Federal Reserve Vice Chair. All three nominees were reported on party-line votes (13-11).
• Chairman Tim Scott (R-SC) noted Hughes’ “strong track record of operational leadership that will be instrumental in strengthening HUD’s efficiency and effectiveness in serving American families.” Chairman Scott also praised Woll’s “decades of legal and policy experience in housing” and said Bowman will bring “accountability and transparency to the Fed.”
Go deeper: Ranking Member Elizabeth Warren (D-MA) said the Trump administration is “in desperate need of serious officials who will serve the American people . . . . That is why I am so concerned about the nominees we are voting on today.” She noted that Bowman “signaled more Wall Street deregulation is on the way” . . . while saying that Hughes and Woll “seem unwilling to stand up against cuts that will undermine fair housing and make it harder to tackle skyrocketing housing costs.”
What’s next: Committee Chairman Scott will work with Senate Majority Leader John Thune (R-SD) to schedule confirmation votes for all three nominees by the full Senate in the foreseeable future.
For more information, please contact George Rogers at (202) 557-2797 or Ethan Saxon at (202) 557-2913.
Federal Reserve Keeps Rates Unchanged
The Federal Reserve held the federal funds rate at a target range of 4.25%-4.50% at its latest meeting on Wednesday.
Why it matters: The Committee’s statement said that “it will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals.”
• The statement also said that the Committee’s assessments “will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.”
In a press statement, MBA’s SVP and Chief Economist Mike Fratantoni said, “The FOMC held the federal funds rate target steady at its May meeting, dismissing the negative first-quarter GDP reading as solely due to volatility in international trade flows but noting that risks to its inflation and employment targets have increased given the heightened policy uncertainties.”
Fratantoni added, “MBA forecasts that the risks to growth and the job market will wind up being the bigger concern this year, which will lead the Fed to resume cutting short-term rates in the second half of the year.”
For more information, please contact Mike Fratantoni at (202) 557-2935.
Get Involved in MAA Action Week: May 12-16
MBA’s annual Mortgage Action Alliance (MAA) Action Week is taking place next week (May 12-16!) More than 100 professional organizations are participating, including 40 state and local chapter associations.
• There’s still time to get involved and promote the importance of advocacy engagement within your company or state association. This industry-wide campaign allows ALL of us to play a part in the legislative and regulatory process – on issues that directly impact all real estate finance professionals. Active MAA engagement allows YOU and your company to drive positive change by adding your voice to our collective efforts.
Go deeper: During MAA Action Week, MBA and its participating organizations encourage you to engage with us via social media, online action and supported bills pages, and learn more about MBA’s federal political action committee, MORPAC.
Join the FUN – and us LIVE –on Wednesday, May 14, at 2:00 PM ET during MAA’s “Social Day” for a Linkedin event: Advocacy Q&A: Your Questions, Our Answers. Don’t forget to tune into this this podcast episode as we gear up for MAA Action Week.
Why it matters: MAA unites our entire industry. You and your company colleagues are the experts – and your voice is needed to play a part conducting this vital work – especially with so many new elected officials in the current Congress.
What’s next: MBA’s federal, bipartisan political action committee, MORPAC, will also be hosting its annual fundraising campaign on June 23-27. MORPAC provides access to build and strengthen relationships with pro-industry candidates and advance MBA’s legislative agenda.
For more information, please contact Jamey Lynch, AMP at (202) 557-2818 or Margie Ehrhardt at (202) 557-2708.
Colorado Governor Urges Legislature to Delay Implementation of AI Law
Last Monday, Colorado Governor Jared Polis sent a letter to the state Legislature urging them to, at a minimum, pass legislation to delay the implementation of last year’s SB 24-205, Consumer Protections for Artificial Intelligence. The letter was co-signed by Colorado Attorney General Phil Weiser, U.S. Senator Michael Bennet, U.S. Representatives Joe Neguse and Brittany Pettersen, and Denver Mayor Mike Johnston.
• During the last week of the legislative session, several amended and delayed implementation bills were filed without success as Colorado adjourned their 2025 regular session on May 7. MBA assisted the Colorado Mortgage Lenders Association (CMLA) with suggested amendments to SB 25-318, the first filed legislation to address concerns with the current law.
• This legislation provided helpful amendments but also would have removed key exemptions for Fannie Mae and Freddie Mac as well their approval of certain technology used within the industry for decades.
Why it matters: Colorado was the first in the nation to enact a law seeking to regulate artificial intelligence (AI). The number of amendments and stakeholder meetings since the enactment of SB 24-205 demonstrate the complications these laws pose with how AI is regulated and the need to acknowledge current consumer protections or anti-discrimination laws. This public letter by state leaders will create momentum for more consideration of the law, which goes into effect in February 2026.
What is next: MBA will continue to support CMLA as they work to assist the Attorney General’s Office in promulgating rules for this law going forward as well as looking for any opportunity to fine tune the existing law in future sessions.
For more information, please visit the MBA resource center mba.org/stateai or contact Liz Facemire at (202) 557-2870 or Gabriel Acosta at (202) 557-2811.
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:
• Manufactured Housing 101: Understanding the Basics – May 12
• Tech Trends Shaping the Future of Mortgage Lending – May 13
• How to Rapidly Respond to Borrowers with Clear & Empathetic Communications During Natural Disasters – May 20
• Cybersecurity in Mortgage, Part II: Ensuring Your Organization is Prepared and Resilient – May 22
• Bank-Owned Mortgage Divisions: What Bankers Need to Know to Manage Mortgage Banking – June 3
• Fundamentals of Loss Mitigation for Residential Servicers – June 3
• Strategies to Improve Retail Mortgage Production – June 5
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.
