Advocacy Update: House Passes MBA-Supported Trigger Leads Bill; Senate Reconciliation Update; HUD Mortgagee Letters; more

June 30, 2025

House Passes MBA-Supported Trigger Leads Bill
On Monday, the full U.S. House of Representatives passed a slightly amended version of the Homebuyers Privacy Protection Act of 2025 (H.R. 2808) by voice vote.

• The highly anticipated vote came less than two weeks after the Senate passed a companion measure (S. 1467, slightly different from the House bill) by unanimous consent (voice vote).

• MBA thanks the nearly 2,000 Mortgage Action Alliance (MAA) members who participated in the call to action by asking their representative to vote in favor of the bill.

What they’re saying: In a press statement, MBA President and CEO Bob Broeksmit, CMB, said, “After two years of unrelenting advocacy efforts, MBA and its members are more optimistic than ever that the abusive use of mortgage credit trigger leads is close to an end.”

Why it matters: Six months after enactment, the legislation would eliminate the abusive use of mortgage credit trigger leads while preserving their deployment in appropriately limited circumstances. Under this bill, trigger leads would be permissible under the Fair Credit Reporting Act only in limited circumstances during a real estate transaction and only to provide a firm offer of credit. A credit reporting agency (“CRA”) would not be able to furnish a trigger lead to a third party unless:

• The third party has certified to the CRA that the consumer explicitly authorizes such solicitations;

• The third party has originated the current residential mortgage loan of the consumer;

• The third party is the servicer of the current residential mortgage loan of the consumer; or

• The third party is an insured depository institution or insured credit union and holds a current deposit account for the consumer.

What’s next: The Senate and House will need to reconcile the minor differences between the two bills. The House-passed bill contains language for an Government Accountability Office (GAO) study on the value of trigger leads by text message (the Senate-passed bill does not). MBA will continue to work with the bill sponsors and congressional leadership in both chambers to get a uniform bill passed and signed into law as quickly as possible.

For more information, please contact George Rogers at (202) 557-2797, Ethan Saxon at (202) 557-2913, Rachel Kelley at (202) 557-2816 and/or Madisyn Rhone at (202) 557-2741.

Senate Republicans Continue Negotiations on Reconciliation Package
Republican-led Senate negotiations continued this week ahead of a series of potential weekend votes on the Senate’s full reconciliation bill (including the tax title). On Thursday, the Senate Parliamentarian dealt a blow to several of the Senate Finance Committee’s initial health provisions, including Medicaid cuts, which have forced Republican Senators to make further refinements.

• Provisions related to clean energy credits and state and local deductions (SALT) also remain key sticking points among Senate and House Republicans.

Why it matters: MBA looks forward to seeing the details of an emerging new Senate once it is recast and finalized. Last week’s Finance Committee-released text included many MBA-supported tax provisions from the House-passed H.R. 1, the “One Big Beautiful Bill Act.” The tax policy changes preserve – and in several cases, enhance – key elements of the 2017 Tax Cuts and Jobs Act identified as priorities by MBA’s Board-approved Tax Task Force, including:
• Makes permanent the 2017 individual rate structure and increased standard deduction (H.R. 1 temporarily extends the standard deduction);

• Maintains and makes permanent the 20% deduction in current law for Qualified Business Income under Section 199A – and expands the deduction limit’s “phase-in” range, though it does not increase it to the 23% included in the House bill;

• Allows 100% bonus depreciation for certain qualifying properties and restores/makes permanent full expensing for new capital investments, while not increasing the state and local tax (SALT) deduction cap (still TBD and in contrast to the House-passed bill);

• Permanently caps eligible mortgage acquisition debt interest deductibility (HELOCs eligible) at $750,000;

• Reinstates and makes permanent the deductibility of mortgage insurance premiums (subject to AGI limitations);

• Makes durable enhancements to the Low-Income Housing Tax Credit (LIHTC) program, e.g., providing a permanent 12 percent increase in 9% credit authority, while permanently lowering the bond financing test from 50 to 25 percent (H.R. 1 increases the 9% credit allocation authority by 12.5 percent and also lowers the bond test to 25 percent, but just for four years, with new basis boosts for properties in rural and Native American communities);

• Makes a renewing set of rounds of the Opportunity Zones (OZ) program permanent – with needed reporting/programmatic tweaks (H.R. 1 would provide just one new additional round of “OZs”);

• Permanently reinstates EBITDA for the calculation of business interest deductibility (in contrast to H.R. 1 temporary reinstatement for five years); and,

• Significantly, does NOT alter the deferred tax treatment of MSRs, nor the tax code’s current “gain on sale” provision, Section 1031 Like Kind Exchange rules, carried interest provision, or capital gains rate.

Go deeper: Last week, MBA sent a letter to Senate Majority Leader John Thune (R-SD) and Senate Finance Chairman Mike Crapo (R-ID) advocating for tailoring of a new tax code Section 899 provision to exempt portfolio interest and income earned from investments in mortgage loans backed by domestic residential and commercial real estate regardless of the vehicle used. MBA also joined a real estate coalition letter delineating additional concerns with Section 899.

• Treasury Secretary Scott Bessent – and Crapo and Ways and Means Chairman Jason Smith (R-MO) – recently announced that Section 899 would be dropped from the reconciliation package due to progress made in international tax discussions with G7 countries pledging to reform tax policies that unfairly target American businesses.

What’s next: Changes in any Senate-passed bill must be worked out and passed identically by both the House and the Senate before a reconciled package could be signed into law by President Trump. It remains unclear if there is enough time to meet President Trump’s goal of a fully passed bill by his imposed July 4 deadline. MBA staff will continue to engage with lawmakers and their key staff to advocate for our industry’s identified tax priorities throughout the remainder of these negotiations.

For more information, please contact George Rogers at (202) 557-2797, Ethan Saxon at (202) 557-2913, Fran Mordi at (202) 557-2860, and/or Bill Killmer at (202) 557-2736.

Senate Finance Republicans Release Key Tax Title Text
On Monday, Senate Finance Committee Chairman Mike Crapo (R-ID) released Republican-crafted legislative text as part of the Senate’s emerging budget reconciliation/tax package. Many MBA-supported tax provisions from the House-passed H.R. 1, the “One Big Beautiful Bill Act,” are maintained and/or enhanced; other elements have been altered. Importantly, the new text also raises/increases the federal debt limit ceiling by $5 trillion.

This Finance Committee tax text must be reviewed by the Senate Parliamentarian for so-called “Byrd Rule” issues. Senate Republican leaders are canvassing their caucus to help determine the changes to the newly released text that will garner enough GOP votes to allow the package to be considered on the Senate floor.

Why it matters: The tax policy changes within the Finance Committee text preserve – and in several cases, enhance – key elements of the 2017 Tax Cuts and Jobs Act identified as priorities by MBA’s Board-approved Tax Task Force, as follows:

• Makes permanent the 2017 individual rate structure and increased standard deduction (H.R. 1 temporarily extends the standard deduction);

• Permanently caps eligible mortgage acquisition debt interest deductibility (HELOCs eligible) at $750,000;

• Reinstates and makes permanent the deductibility of mortgage insurance premiums (subject to AGI limitations);

• Makes a renewing set of rounds of the Opportunity Zones (OZ) program permanent – with needed reporting/programmatic tweaks (H.R. 1 would provide just one new additional round of “OZs”);

• Permanently reinstates EBITDA for the calculation of business interest deductibility (in contrast to H.R. 1 temporary reinstatement for five years); and,

The Senate Finance “mark” includes Section 899 “revenge tax” language (as does the House bill), which imposes additional tax penalty authority to be utilized in response to unfair foreign taxes that may be imposed on U.S. companies (though the Senate Finance text includes a delay in applicability and limits the total increase to 15% over three years). MBA and a broad real estate coalition remain concerned that the Section 899 language, absent needed changes, could diminish the appetite for foreign investment in U.S. real estate/securities.

Go deeper: This week, MBA sent a letter to Senate Majority Leader John Thune (R-SD) and Senate Finance Chairman Mike Crapo (R-ID) advocating for tailoring of the Section 899 provision to exempt interest earned from investments in mortgage loans backed by domestic residential and commercial real estate regardless of the vehicle used. MBA also joined a real estate coalition letter delineating additional concerns with Section 899.

What’s next: MBA will provide a more detailed summary of the Senate Finance text in the coming days. While exact timing is uncertain, Majority Leader Thune has indicated he would like the Senate to begin consideration of the full reconciliation bill (including the tax title) by the middle of next week.

As the Senate reconciliation bill will differ from the House-passed bill, any changes passed by the Senate would then have to be worked out between the two bodies and passed identically by both the House and the Senate before the package could be signed into law by the President. MBA staff will continue to engage with lawmakers and their key staff to advocate for our industry’s identified tax priorities throughout the remainder of the debate this summer.

For more information, please contact George Rogers at (202) 557-2797, Ethan Saxon at (202) 557-2913, Fran Mordi at (202) 557-2860, and/or Bill Killmer at (202) 557-2736.

Senate Republicans Continue Negotiations on Reconciliation Package

Republican-led Senate negotiations continued LAST week ahead of a series of potential weekend votes on the Senate’s full reconciliation bill (including the tax title). On Thursday, the Senate Parliamentarian dealt a blow to several of the Senate Finance Committee’s initial health provisions, including Medicaid cuts, which have forced Republican Senators to make further refinements.

• Provisions related to clean energy credits and state and local deductions (SALT) also remain key sticking points among Senate and House Republicans.

• Makes permanent the 2017 individual rate structure and increased standard deduction (H.R. 1 temporarily extends the standard deduction);

• Permanently caps eligible mortgage acquisition debt interest deductibility (HELOCs eligible) at $750,000;

• Reinstates and makes permanent the deductibility of mortgage insurance premiums (subject to AGI limitations);

• Makes a renewing set of rounds of the Opportunity Zones (OZ) program permanent – with needed reporting/programmatic tweaks (H.R. 1 would provide just one new additional round of “OZs”);

• Permanently reinstates EBITDA for the calculation of business interest deductibility (in contrast to H.R. 1 temporary reinstatement for five years); and,

• Treasury Secretary Scott Bessent – and Crapo and Ways and Means Chairman Jason Smith (R-MO) – announced that Section 899 would be dropped from the reconciliation package due to progress made in international tax discussions with G7 countries pledging to reform tax policies that unfairly target American businesses.

For more information, please contact George Rogers at (202) 557-2797, Ethan Saxon at (202) 557-2913, Fran Mordi at (202) 557-2860, and/or Bill Killmer at (202) 557-2736.

Fed Chair Powell Provides Semiannual Monetary Policy Testimony to Congress
Last week, Federal Reserve Chair Jerome Powell appeared before both the House Financial Services Committee and Senate Banking Committee to deliver the Fed’s semi-annual Monetary Policy Report. Committee members on both sides of the aisle pressed Chair Powell on the economic impact of new tariffs, the cost of home insurance, the Fed’s interest rate posture, and threats to central bank independence.

• A summary of the Senate and House hearings, respectively, can be found here and here.

Why it matters: Housing affordability and bank regulations continued to be top of mind for legislators, with bipartisan concern expressed at the hearings over the “lock-in effect” of high mortgage rates and persistent housing supply constraints. Chair Powell was encouraged to move forward on adjusting the supplementary leverage ratio (SLR) and a new Basel III re-proposal.

What’s next: MBA will continue to advocate for housing-sensitive monetary policy and urge policymakers to address regulatory barriers constraining housing production.

For more information, please contact George Rogers at (202) 557-2797, Ethan Saxon at (202) 557-2913, Rachel Kelley at (202) 557-2816 and/or Madisyn Rhone at (202) 557-2741.

FHA Issues Policy Updates to Streamline Single-Family Program Requirements
On Friday, Federal Housing Administration (FHA) released a series of Mortgagee Letters (MLs) aimed at streamlining requirements and reducing regulatory burdens across its Single-Family programs.

The updates include the rescission of policies related to the Supplemental Consumer Information Form (SCIF), full-time employment for Direct Endorsement (DE) underwriters, certain appraisal protocols, Federal Flood Risk Management Standards (FFRMS) for new construction, and pre-endorsement inspections in disaster areas. All changes are effective immediately and will be incorporated into the FHA Single Family Housing Policy Handbook 4000.1.

Mortgagee Letters:

• Mortgagee Letter 2025-15: FHA rescinded the requirement for the SCIF, citing its limited benefit to borrowers and increased burden on lenders, in alignment with the President’s Executive Orders to reduce regulatory barriers and promote equity in housing.

• Mortgagee Letter 2025-16: FHA rescinded the requirement that DE underwriters must be employed full-time by a single FHA-approved mortgagee. This change allows for part-time employment while maintaining the condition that underwriters must still be permanent employees of one mortgagee and not contractors.

• Mortgagee Letter 2025-17: FHA rescinded the FFRMS requirement for new construction eligibility in Special Flood Hazard Areas (SFHAs), originally adopted in Mortgagee Letter 2024-20. The previous elevation standard, which required building two feet above the Base Flood Elevation, is replaced with the prior, less restrictive requirements during the waiver period.

• Mortgagee Letter 2025-18: FHA revised its appraisal policies by removing several requirements it identified as outdated or duplicative. Changes include the elimination of the requirement to report remaining economic life, adjustments to photo documentation standards, and the removal of certain reporting requirements for market conditions and comparable sales in changing markets.

• Mortgagee Letter 2025-19: FHA rescinded its previous requirement for mandatory pre-endorsement damage inspections by FHA Roster Appraisers for properties in Presidentially-Declared Major Disaster Areas (PDMDAs). The new policy grants mortgagees greater discretion to determine if inspections or repairs are necessary based on their risk management procedures.

What’s Next: MBA will continue to review the newly released MLs for their impact on the industry and will provide feedback, where necessary, through the Government Loan Production Subcommittee.

For more information, please contact Darnell Peterson at (202) 557-2922.

FHFA Director Issues Order Directing GSEs to Prepare Proposals to Consider Cryptocurrency as Reserve Assets for GSE Loans

On Wednesday, FHFA Director Bill Pulte issued an order (via X) that directs Fannie Mae and Freddie Mac (the GSEs) to prepare proposals for considering cryptocurrency as an asset for reserves in their respective single-family mortgage loan risk assessments.

Go deeper: Notably, the order states that the GSEs proposals should not require cryptocurrency to be converted to U.S. Dollars and only cryptocurrency assets that can be evidenced and stored on a U.S.-regulated centralized exchange should be considered. The GSEs are also encouraged to do their own risk assessments and include additional risk mitigants including adjustments for market volatility.

Why it matters: MBA welcomes what should be a collective industry effort to modernize the mortgage underwriting process. Cryptocurrency as a reserve asset is one option, and there other impactful approaches to rethinking the underwriting of mortgage risk that should be included in the effort.

What’s next: The order states that each GSE must submit their proposals to their respective Board of Directors and receive approval prior to submitting the proposals to FHFA for review. No specific timeline was stated, but the order states that it is “effective immediately and should be implemented as soon as reasonably practical”.

• MBA plans to remain engaged with FHFA and the GSEs on this and other important matters.

For more information, please contact Sasha Hewlett at (202) 557-2805.

FHA Seeks Industry Feedback on Buy Now Pay Later Underwriting
On Tuesday, FHA issued a Request for Information (RFI) to gather input on the growing use of Buy Now, Pay Later (BNPL) products and their potential impact on housing affordability, borrower financial health, and mortgage underwriting. FHA is inviting industry stakeholders to provide feedback on how BNPL activity influences debt-to-income ratios, borrower eligibility for FHA-insured loans, and overall housing stability.

Why it matters: With BNPL usage on the rise, FHA is increasingly concerned that these short-term, often unreported debts may distort prospective borrowers’ financial profiles and complicate the mortgage underwriting process.

What is next: Comments are due by August 25, 2025. MBA’s Government Loan Production Subcommittee already has a BNPL working group in place. The group is actively developing a proposal ahead of the RFI’s release and is scheduled to meet on Monday, June 30, to discuss MBA’s response.

For more information, please contact Darnell Peterson at (202) 557-2922.

House Financial Services Committee Examines Biden-era CFPB
On Thursday, the House Financial Services Subcommittee on Oversight and Investigations held a hearing titled, “From Watchdog to Attack Dog: Examining the CFPB’s Chopra-era Assault on Disfavored Industries.”

Go deeper: The hearing centered on Republican allegations that the Consumer Financial Protection Bureau (CFPB) under former Director Rohit Chopra overreached its statutory authority and unfairly targeted certain business segments. Democratic lawmakers were critical of the current Trump administration’s efforts to curtail CFPB’s regulatory oversight and mission.

• Testimony featured a small business owner detailing severe impacts from CFPB investigations, alongside legal experts and advocates debating the agency’s conduct and efficacy under different leaderships.

• A summary of the hearing can be found here.

Why it matters: At present, the CPFB (under acting supervision by the Office of Management and Budget) is working through staff reductions, subject to pending litigation, potential funding cuts, and waiting for a new Director-designate to be named.

What’s next: MBA will continue to actively monitor the CFPB’s regulatory activities – and any related legislative proposals impacting the agency.

For more information, please contact Rachel Kelley at (202) 557-2816 or Madisyn Rhone at (202) 557-2741.

HVAC Democrats Host Roundtable on Strengthening the VA Home Loan Program
On Thursday, seven Democratic Members of the House Veterans’ Affairs Committee (HVAC) convened a roundtable titled, “Housing More Veterans Using the VA Loan Guaranty Program.” The discussion focused on improving awareness, access, and effectiveness of the VA loan program, with particular attention on loss mitigation, program transparency, and operational capacity.

Go deeper: MBA’s Vice President for Legislative Affairs, Madisyn Rhone (liaison to House Democrats) delivered remarks emphasizing the urgent need for a more permanent partial claims loss mitigation solution while reinforcing MBA’s support for swift Senate passage of H.R. 1815.

• Participants included representatives from the Housing Policy Council, Center for Responsible Lending, National Coalition for Homeless Veterans, the VFW, the Paralyzed Veterans of America, and other consumer and veterans advocacy groups.

Why it matters: The roundtable provided an opportunity for MBA to press for immediate action on a partial claims solution that will directly impact more than 200,000 VA borrowers currently delinquent or in foreclosure. Rhone highlighted that without scalable, effective loss mitigation tools, veterans are falling behind due to high interest rates and because the VA’s servicing infrastructure lags behind its government housing program peers. She also reiterated MBA’s calls for enhanced transparency around funding fees and additional resources to modernize VA operations.

What’s next: MBA will continue its advocacy for Senate adoption of the House-passed partial claims legislation, while working with all engaged stakeholders to ensure long-term success of the VA Home Loan Program.

For more information, please contact Rachel Kelley at (202) 557-2816 or Madisyn Rhone at (202) 557-2741.

Register: Condo Lending Summit on July 23
MBA will be holding an in-person summit on July 23, 2025, in Washington, D.C., where lenders, representatives from the government agencies, and data providers will meet to address the key condo lending issues.

• Condominiums for many are an entry point into homeownership, and in many markets provide affordable housing options. Mortgage lending for condos plays a critical role in facilitating the access to financing for consumers, but the lending environment has become increasingly complex on many fronts.

Why it matters: The condo lending landscape continues to evolve rapidly due to factors such as housing market dynamics, investor requirements, and insurance challenges. Bringing together industry stakeholders to discuss these issues helps us to collaborate on solutions and provides educational and networking opportunities.

What’s next: Register here.

For more information, please visit the condo summit website or contact Joel Kan at (202) 557- 2951 or John McMullen at (202) 557- 2706.

July 22 CRA Workshop to Focus on Business Planning to Meet CRA Objectives
MBA will conduct an in-person CRA Workshop on July 22, 2025, in Washington, DC, to bring industry experts – lawyers, managers of affordable housing and Community Reinvestment Act (CRA) lending, credit risk analysts, compliance specialists, consultants – together to discuss the current status of CRA and how to best achieve CRA lending objectives.

Go deeper: Over the years, there have been regulatory updates to CRA implementation, including significant revisions in 1995, 2021, and 2023.

• Most recently, agency efforts to modernize CRA have been controversial, resulting in court actions. At the same time, some states have enacted or are considering their own versions of CRA that may include both banks and independent mortgage companies.

Why it matters: The CRA challenges for residential mortgage lending are numerous, and include: general competition for loan volume, movement to a purchase market, tight housing inventories particularly for low-to-moderate income housing in many parts of the country, the changing landscape of retail bank branches in an electronic age, and possibly new rules at the state level, as well as lack of clarity in the rules at the national level.

What’s next: Register for MBA’s CRA Lending Workshop here.

Register: MBA’s mPact Summit on Aug. 5

Meet us in the nation’s capital for a full day of career development and networking on Tuesday, August 5, 2025. Back by popular demand, this event is built by young professionals in the real estate industry, for young professionals, who are focused on helping you get to the next level.

Why it matters: The mPact Summit isn’t just about career tips, it’s about empowerment, connection, and growth! The summit will provide the tools, confidence, and network to thrive and help you become tomorrow’s leaders.

Register now!

For more information, please contact Jacky Salazar at (202) 557-2746.

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:

• AI on Trial: Fair Lending, Compliance, and the Fight for Transparency in Mortgage Lending – July 9
• Bank-Owned Mortgage Divisions: What Bankers Need to Know to Manage Mortgage Banking – July 21
• Legal Duties to Prevent Fraud and Opportunities to Safeguard the System – Aug. 6
Secure Your Access: Navigating FHA’s New Multi-Factor Authentication and Similar Requirements – July 9
• The Current State of Non-Agency Lending – July 15
• Bank-Owned Mortgage Divisions: What Bankers Need to Know to Manage Mortgage Banking – July 21
• Shared Equity Mortgages: How Companies Can Expand Their Community Impact – July 22
• Home Equity Lending in Focus: Data-Driven Strategies for Modern Markets – July 28
• Legal Duties to Prevent Fraud and Opportunities to Safeguard the System – Aug. 6

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.

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