CREF Policy Update: Senate Confirms Gould, Pettit to Key Regulatory Roles
Senate Confirms Gould, Pettit to Key Regulatory Roles; McKernan Nomination Progresses
Recently, the full Senate confirmed Jonathan Gould to lead the Office of the Comptroller of the Currency (OCC) by a vote of 50-45. Last week, the Senate confirmed Luke Pettit to be Assistant Secretary of Treasury for Financial Institutions by a vote of 69-30.
In addition, the Senate Finance Committee held a hearing on July 22 for Jonathan McKernan’s Undersecretary of Treasury (Domestic Finance) nomination. Gould and Pettit, and McKernan, if confirmed, will form a key trio of Trump administration officials important to real estate finance.
What they’re saying: In a press statement, MBA President and CEO Bob Broeksmit, CMB, said about Gould:
“We look forward to Comptroller Gould’s measured approach to banking supervision, with a focus on ensuring safety and soundness in the banking system without imposing complex or burdensome regulatory oversight. MBA will also continue to advocate for reforms that support improved housing affordability and banks’ increased participating in the mortgage market, such as recalibrating risk-based capital requirements for mortgage servicing rights and warehouse lending.”
MBA has also publicly supported Pettit and McKernan’s nominations in a letter and press statement, respectively.
Go deeper: Gould leads one of the three agencies that have rulemaking authority (along with the Board of Governors of the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC)) over numerous financial laws. These include regulations for the Community Reinvestment Act. Earlier this week, a Notice of Proposed Rulemaking (NPR) was issued to rescind the recent changes to the rule (see blurb below).
Pettit will help lead efforts at Treasury to help formulate policy on financial institutions and community and economic development, cybersecurity, and critical infrastructure protection. He previously worked in the private sector and, until his confirmation, served as senior staff to Senator Bill Hagerty (R-TN).
What’s next: McKernan, whose nomination to be CFPB Director was withdrawn earlier this year, will play a key role on issues related to financial institutions/markets and fiscal service – including municipal debt finance and the housing GSEs – in his role as Treasury Undersecretary for Domestic Finance.
For more information, please contact George Rogers at (202) 557-2797 or Ethan Saxon at (202) 557-2913.
Agencies Release Proposal to Rescind 2023 CRA Final Rule
Last Wednesday, the OCC, Federal Reserve and Federal Deposit Insurance Corporation (FDIC) issued a joint NPR to rescind the 2023 CRA Final Rule. The new proposal calls for a return to the CRA framework adopted in 1995. Comments on the NPR are due 30 days after the date of publication in the Federal Register.
• The agencies cited two major objectives in their new proposal: (1) restoring certainty in the CRA framework for stakeholders, and (2) limiting regulatory burden on banks.
• Regarding the potential of proposing an entirely new CRA framework, the NPR noted, “Another alternative the agencies considered was proposing to replace the 2023 CRA Final Rule with a new CRA framework that is materially different from the framework contained in the 2023 CRA Final Rule. However, proposing to establish a materially revised framework would involve undertaking an extensive regulatory process, which would not be consistent with the agencies’ objective of restoring certainty in the near term.”
• Lastly, the agencies considered making amendments to the 2023 CRA Final Rule but decided against doing so due to the Rule’s interdependent provisions.
Why it matters: MBA supports the agencies’ goals of providing certainty around the CRA framework and limiting regulatory burden on banks and recognizes that the 1995 framework requires meaningful changes. MBA stands ready to work with the Administration on changes that will positively impact banks and consumers and make examinations easier for the agencies.
• CRE-related lending and investing plays a significant role in CRA compliance. MBA will work to ensure its members receive CRA credit for qualifying activities related to community development projects and affordable housing development.
What’s next: MBA will submit a comment letter to the agencies advocating for our members’ interests. Please share your CRA-related comments, questions, or concerns with us.
For more information or to participate in the comment writing process, please contact Fran Mordi at (202) 557-2860 and John Lammle at (202) 557-2789.
House Hearings Spotlight Housing Supply and Regulatory Reform Needs
Last week, the House Financial Services Committee (HFSC) held two hearings with broad implications for MBA members.
• On Tuesday, the full Committee convened “Dodd-Frank Turns 15: Lessons Learned and the Road Ahead,” where lawmakers debated the law’s impact on financial markets, regulatory complexity, and consumer protection. Key themes included recalibrating Basel III capital standards, tailoring compliance frameworks for smaller institutions, and reining in the CFPB’s authority under UDAAP. Several members also pushed to repeal Section 1071 data collection rules, citing burdens on small and mid-size lenders.
• On Wednesday, the Subcommittee on Housing and Insurance held, “HOME 2.0: Modern Solutions to the Housing Shortage,” which included a wide-ranging discussion on HOME program reforms and barriers to increased housing supply, including workforce shortages, regulatory delays, and capital stack complexities. Witnesses affirmed that off-site and modular construction could be a valuable tool to help improve building efficiency, reduce costs, and increase housing market participation by smaller builders and additional nonprofit entities.
Why it matters: The HFSC’s continued emphasis on housing supply indicates a continued emphasis on modular housing as a practical solution to issues related to housing availability and affordability. At the same time, ongoing discussions about financial regulation and CFPB oversight have a direct impact on the compliance burdens, capital access, and consumer-facing operations of MBA members.
What’s next: MBA will continue to engage with lawmakers and regulators to advance modular-friendly policies. We will also monitor developments related to Basel III, Section 1071, and UDAAP reform to ensure members are protected from unnecessary regulatory burdens while preserving market stability.
For more information, please contact Rachel Kelley at (202) 557-2816 or Madisyn Rhone at (202) 557-2741
House Considers FY 2026 HUD Funding Reductions
Last Monday, the House Appropriations Subcommittee on Transportation, Housing and Urban Development (“T-HUD”) considered its version of Fiscal Year (FY) 2026 appropriations for the Departments of HUD and Transportation.
Go deeper: The House bill, now revealed, does not eliminate nor reduce funding for many HUD programs as significantly as proposed in the President’s budget request, underscoring the importance of ongoing congressional advocacy for key housing and community development programs.
• The proposed legislation, which passed the full House Appropriations Committee along party lines (35-28), last week, provides a total discretionary allocation of $89.9 billion, a $4.5 billion reduction from the FY 25 enacted level. Watch a video of the subcommittee proceedings here. MBA submitted a letter outlining our requests to leadership, which can be found here.
Why it matters: The current language provides a net discretionary total of $67.751 billion for HUD, which is $939 million below the FY25 enacted level (including a potential 26% reduction in staffing). The House bill also eliminates the HOME program – the state/local grant program dedicated to low-income/affordable housing that often pairs with Low Income Housing Tax Credit (LIHTC) projects.
What’s next: Senate appropriators have not yet released their suggested T-HUD funding text. In prior years, the Senate’s T-HUD bill differed from the initial House version and ultimately retained funding for programs that had been reduced or eliminated. MBA will continue to advocate for industry priorities, including adequate funding for FHA and Ginnie Mae’s administrative expenses, adequate FHA multifamily credit authority, rental assistance and housing counseling assistance programs, and adequate funding for HUD’s cybersecurity and IT projects and programs.
For more information, please contact Rachel Kelley at (202) 557-2816 or Madisyn Rhone at (202) 557-2741.
MBA Supports Reconsideration of HUD Energy Standards Rule
Last Thursday, MBA submitted comments on HUD’s and the Department of Agriculture’s (USDA) proposal to reconsider changes to energy requirements for building standards.
• The original determination, released by the Biden administration, led to the new building codes, requiring adoption of the 2021 IECC and 2019 ANSI/ASHRAIE/IES Standard 90:1 for FHA-insured construction.
• MBA has long argued that this change will increase costs, limit construction of new supply, and conflict with state and local building codes.
Why it matters: Implementation of the new energy standards has been delayed by the Trump administration, and a reversal of the original determination could lead to the repeal of the Rule.
What’s next: MBA supports the reversal of this proposal and will continue to advocate for reasonable requirements for FHA programs to ensure the continued development of new housing units.
For more information, please contact Megan Booth at (202) 557-2740.
MBA Strongly Supports FHA Multifamily MIP Reduction
Last Wednesday, MBA submitted comments to HUD strongly supporting its proposal to drop multifamily mortgage insurance premiums (MIPs) across the board.
• HUD’s proposal would eliminate the Green MIP program, which had provided a discounted MIP if a project met certain energy efficiency criteria and received a Green certification. The proposal would level the MIP at 25 basis points for all new multifamily loans, eliminating any Green requirements.
Why it matters: Lowering the MIP for HUD multifamily programs is a significant victory and something MBA and its members have been recommending for years.
In a press statement last month, MBA’s Broeksmit said “Leveling upfront and annual mortgage insurance premiums will help increase rental housing production and improve affordability for renters across the country.”
What’s next: The comment period closes on July 28, 2025. HUD will review the comments and publish a final rule likely in August or September.
For more information, please contact Megan Booth at (202) 557-2740.
MBA Requests Lower MIP for HUD Healthcare Properties
On Thursday, MBA responded to HUD’s NPR that cancels the Green Mortgage Insurance Premium for FHA Healthcare properties. MBA and HMAC sent a joint letter urging HUD to reduce the MIP for 232 property loans, just as it has proposed to do across the board for FHA multifamily loans.
Why it matters: 232 properties supply much needed, skilled nursing facilities for America’s aging population. The 232 program has maintained low claims activity, consistently strong debt service coverage, positive net revenues, and have a precedent for differentiated MIP, all of which argue strongly for equitable inclusion in the MIP reduction policy.
What’s next: MBA will work with HUD to reinforce the need for this reduction.
For more information, please contact Megan Booth at (202) 557-2740.
Making Waves for Advocacy in August!
MBA’s Mortgage Action Alliance (MAA) Advocacy in August campaign is quickly approaching! Like the National Advocacy Conference (NAC), Advocacy in August is an important political engagement strategy designed to continue advancing MBA’s legislative agenda.
• Learn how you can make a big splash and engage with MBA next month!
Why it matters: During the Congressional August Recess (early August through September 1), members of Congress will be home in their states and districts to hear directly from constituents. Participation in these meetings is an essential component of our overall advocacy efforts. Sign up here to receive help working to schedule meetings in your state or congressional district.
What’s next: Join MBA’s Legislative and Political Affairs team during the next MAA Quarterly Webinar: “Sustained Advocacy Drives Results: What’s Ahead?” Register now!
For more information, please contact Jamey Lynch, AMP at (202) 557-2818 or Margie Ehrhardt at (202) 557-2708.
Register: MBA’s mPact Summit on Aug. 5
Young professionals, meet us in the nation’s capital for a full day of career development and networking on Tuesday, Aug. 5, 2025. Back by popular demand, this event is built by young professionals in the real estate industry, for young professionals, and 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 CREF Councils and Committee Meetings
MBA’s CREF Councils and Committees are a key way to connect to everything MBA has to offer around policy, advocacy, market intelligence and research, education, and networking. Councils and Committees are built around specific capital sources and serve as an opportunity for you to join other commercial real estate finance professionals to hear from experts, discuss opportunities and challenges, and connect with peers.
What’s next: Upcoming virtual meetings include:
• Structured Finance Council: Aug. 6
• FHA Committee: Aug. 12
• Private Credit Council: Aug. 21
• Commercial Council: Aug. 26
• Life Company Council: Sept. 16
• Servicer Council: Sept. 18
• Bank Council: Sept. 24
For more information, click on the links above and/or contact Kelli Burke at (202) 557- 2742.
[VIDEO] mPower Moments: On the Four Women’s Health Myths with Dr. Elizabeth Comen
During MBA’s Secondary and Capital Markets Conference in May, mPower Founder Marcia Davies sat down with Dr. Elizabeth Comen, Physician-Scientist, Associate Professor of Medicine at NYU, and Medical Historian, for an important conversation on women’s health. During the conversation, Dr. Comen discussed her latest book, “All in Her Head,” and the top medical myths that women often experience.
Go deeper: Dr. Comen also noted the importance of creating more spaces and opportunities for women to discuss their health issues and the need for self-advocacy to gain the answers a woman may need when dealing with medical advice.
• 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 commercial/multifamily and 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:
• Navigating Coverage and Risk for Commercial Catastrophic Insurance – July 21
• Practical Application of Distressed Asset Valuation – Case Examples and Lender Perspectives – Aug. 13
• Using Ordinance and Law Insurance to Protect Your Property and Business Recovery – Aug. 27
• Trends in Commercial Non-Bank Lending: Evolving Strategies & Creating Operational Advantages – Sept. 9
• Fundamentals of Commercial Insurance Issues and Problems – Sept.18
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.
