MBA Advocacy Update: Latest on GSEs; MBA Supports CRA Rule Rescission; CFPB Court News; MAA Webinar Sept. 10

Latest on the GSEs and MBA’s Ongoing Engagement, Principles

This month, The Wall Street Journaland many outlets since thenhave reported that the Trump administration is reviewing the feasibility of an initial public offering (IPO) of Fannie Mae and Freddie Mac (the GSEs) later this year.

Go deeper: Details remain sparse. For example, Federal Housing Finance Agency (FHFA) Director Bill Pulte yesterday in a FOX Business TV interview said that a final decision on an IPO (and other moves) are up to President Donald Trump. He also emphasized last week in an industry webinar that any action would be a “nonissue” in terms of market impact, indicated that the government would only sell a small portion of the GSEs, if at all, and said they would likely remain in conservatorship and that President Trump will “remain in control of the GSEs.”

Why it matters: These messages clearly signal – consistent with what MBA has learned from recent meetings with Administration officials – that the development of a plan for re-privatizing or ending conservatorship has kicked off, but appears to be in the early stages.

On speculation that the GSEs could be merged into a single entity, MBA has long-standing policy supporting competition between at least two GSEs. As MBA Chief Economist Mike Fratantoni stressed, among other things, in a recent HousingWire interview, “Competition in the secondary market is really beneficial for the system as a whole.”

The bottom line: As plans evolve, MBA will continue its ongoing engagement efforts with the Administration and Congress to ensure critical regulatory and market structure/market conduct issues are addressed, including:

• Preserving competition between at least two GSEs;

• Ensuring FHFA has an obligation to maintain a level playing field with respect to pricing, pilots, product, and underwriting variances;

• Preserving a bright line to ensure the GSEs do not compete with the primary market;

• Robust bank-like capital; and,

• Establishing a well-defined, paid-for federal backstop against the GSEs’ MBS, that could be tapped only after all private capital (MI, CRT and GSE capital) is exhausted.

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

MBA Letter Supports Rescission of 2023 CRA Rule

On Monday, submitted a comment letter in response to the Federal Reserve’s, Office of the Comptroller of the Currency’s (OCC), and the Federal Deposit Insurance Corporation’s (FDIC) joint Notice of Proposed Rulemaking (NPR) to rescind the 2023 Community Reinvestment Act final rule.

Go deeper: MBA’s letter highlights its support for the Agencies’ proposal to rescind the 2023 final rule and re-propose the prior standards. MBA also recommended that the Agencies include clarifying amendments as part of the re-proposal.

Why it matters: MBA supports the Agencies’ goals of providing certainty around the CRA framework and limiting regulatory burden on banks. MBA will continue to work to ensure its members receive CRA credit for qualifying activities related to community development activities and affordable housing development.

What’s next: MBA will continue to engage the Agencies on simplifying CRA examinations while ensuring that the standards applied to these examinations are objective and consistent across the entire process.

For more information, please contact Fran Mordi at (202) 557-2860 and John Lammle at (202) 557-2789.

MBA, Trades Submit Response to House Energy & Commerce Committee RFI on Data Privacy

On Tuesday, MBA and other financial services trade associations sent a letter in response to the House of Representatives Energy & Commerce (E&C) Committee’s Request for Information (RFI) on Data Privacy. In the letter, MBA and the groups argued that Congress should exempt financial institutions within any broad data privacy proposal – with the recognition that financial institutions already adhere to statutorily-mandated data privacy requirements.

• Specifically, the letter called for an exemption for entities, their affiliates, and data already subject to the Gramm-Leach-Bliley Act (GLBA) in the same style as the exemption found within the state of Kentucky’s Consumer Data Protection Act.

Go deeper: The financial services industry was among the first sectors subject to a federal framework governing the collection, use, and sharing of consumer personal information pursuant to the GLBA in 1999. Given that financial services’ data privacy practices are already supervised, financial institutions should not be subject to inconsistent or duplicative requirements primarily designed to regulate other types of entities.

• The letter highlighted the cost of compliance for following both the GLBA and the growing patchwork of emerging state data privacy laws.

What’s next: MBA will keep members updated about any developments following the RFI as well as any legislation introduced by the E&C Committee in the coming weeks and months.

For more information, please contact Rachel Kelley (202) 557-2816, Madisyn Rhone at (202) 557-2741, or Gabriel Acosta at (202) 557-2811.

Register for MAA’s Next Quarterly Webinar: September 10

On September 10, join MBA’s Legislative and Political Affairs Team for the next Mortgage Action Alliance (MAA) Quarterly Webinar, which will discuss the remaining agenda for Congress in 2025 and beyond. 

• Both chambers of Congress, set to return from their three-week August recess, will have a busy September, with various policy issues and budget matters on the agenda, including funding the government beyond September 30th. Register now for this can’t-miss virtual event!

Why it matters: MAA’s Quarterly Webinar Series provides valuable insights into the legislative process, policy landscape, and addressing key issues impacting the real estate finance industry, allowing MBA and MAA members to effectively engage in advocacy year-round.

What’s next: Register to attend MBA’s National Advocacy Conference (NAC), taking place April 14-15, 2026, at The Westin DC Downtown. Join hundreds of industry advocates to meet with and educate policymakers on issues impacting your businesses and customers. It’s never too early to make your plans!

Register by March 2, 2026to receive the early bird rate. MBA offers special rates for members of MBA’s young professionals’ network (mPact), the Certified Mortgage Banker (CMB) Society, and group rates for MBA member companies as well.

For more information, please contact maa@mba.org or Margie Ehrhardt at (202) 557-2708.

D.C. Circuit Court Vacates Preliminary Injunction on CFPB Mass Layoffs

The U.S. Court of Appeals for the District of Columbia in a 2-1 opinion vacated the preliminary injunction issued by Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia that enjoined the Consumer Financial Protection Bureau (CFPB) from firing roughly 1,400 of their employees. The Court also remanded the case for further proceedings.  

• This decision lifts the original ban on layoffs, allowing the CFPB to continue with their reductions in force (RIF). 

Go deeper: On April 11, a three-judge panel for the D.C. Circuit gave the CFPB the freedom to terminate employees if, after a “particularized assessment,” the agency determined that the employees to be terminated would be “unnecessary to the performance of [the agency’s] statutory duties.” Then, the CFPB issued a RIF, effectively terminating 90 percent of agency employees.

• After plaintiffs filed an emergency motion to show cause as to how the RIF did not violate the district court’s preliminary injunction, the CFPB sought relief from the D.C. Circuit in the form of clarification of the particularized assessment requirement or enforcement of its order staying the applicable paragraph of the preliminary injunction. The U.S. Court of Appeals then issued the now-vacated temporary injunction on April 28.

What’s next: The case may not be concluded, as there remains the possibility of an appeal to the full D.C. Circuit Court of Appeals or to the Supreme Court. The D.C. Circuit Court ordered the clerk to “withhold issuance of the mandate … until seven days after disposition of any timely petition for rehearing or petition for rehearing en banc.”

• The scope of Judge Jackson’s preliminary injunction, therefore, will remain in effect until the plaintiffs appeal the panel’s decision to the full bench of the D.C. Circuit or to the U.S. Supreme Court. The plaintiffs have 45 days to petition the D.C. Circuit to rehear the case, so this decision will remain delayed until seven days after any such petition is resolved.

• MBA will continue to monitor news from the CFPB, including the Bureau’s rulemaking agenda, and provide updates to members.  

For more information, please contact Justin Wiseman at (202) 557- 2854 or Alisha Sears at (202) 557-2390.

NMLS Releases MCR Form Version 7 Definitions and Sample Report

The Nationwide Multistate Licensing System and Registry (NMLS) released the definitions and sample MCR (Mortgage Call Report) for the MCR Form Version 7 to be implemented during the first quarter of 2026.

Go deeper: Many of the new MCR changes relate to state regulator adoption of the Conference of State Bank Supervisors’ (CSBS) model standards for nonbank capital, liquidity, and governance. MBA successfully advocated for alignment with federal requirements that apply to government sponsored enterprise and government loan servicing.

• The first reporting quarter for the MCR V7 starts January 1, 2026. The deadline for first-quarter 2026 reports is May 15, 2026. Members should note that MCR V7 specifications are in the linked documents above and not at the moment on the main MCR landing page, which focuses on current V6 requirements.

Why it matters: While helpful, the information released does not include the important MCR V7 XML file. CSBS has said the XML file will not be available until November or December. MBA strongly objected to this timing during the comment process last winter as well as during the NMLS Ombudsman meeting earlier this month.

• This delay is a repeat of a disappointing approach used with the Version 6 release less than two years ago. At that time, members were forced to review, test, and operationalize the XML file’s technical requirements very late in the development timeline, just weeks before the beginning of reporting, and during the intense licensing renewal season and year-end systems maintenance. 

What is next: MBA will continue to advocate for the earliest delivery of the XML file possible and for a grace period by state regulators for first-quarter 2026 MCR report submission date.

For more information, please contact William Kooper (202) 557-2737 or Liz Facemire (202) 557-2870.

Prepare for NMLS Changes Coming on September 20, 2025

As part of its broader system modernization efforts, the NMLS is launching significant changes ahead of this year’s licensing renewal season. The key updates to the system include:

• A Modernized NMLS Resource Center: Starting September 20, users will see a revamped Resource Center with new navigation and content, designed to be more user-friendly and facilitate easier access to critical information for companies and individuals.

• New Individual Application Process: The process for individual applications is being streamlined to reduce friction, making it simpler for license applicants to navigate requirements.

• System Updates for New Policies: The NMLS platform is adjusting to accommodate updates for disclosure questions, new remote work policies, processing of unsubmitted filings, and the adoption of the latest Mortgage Call Report (MCR) Form Version 7.

• Updated Policy Guidebook: The Policy Guidebook is being rewritten for clarity and ease of use, supporting mortgage companies with clearer guidelines and requirements.

Why it matters: The changes are all effective September 20, 2025, and MBA members are encouraged to review the materials on the NMLS Modernization Resource Center such as FAQs, recorded Town Hall webinars, release notes, PowerPoints, and much more.

What’s next: MBA members can attend the MBA’s Compliance and Risk Management Conference on September 28-30 in D.C., where CSBS staff and industry experts will review and discuss these changes.

For more information, please contact William Kooper (202) 557-2737 or Liz Facemire (202) 557-2870.

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:

Non-Agency Training Series: Bank Statement Loans – August 26

Reverse Mortgages: State of Play – August 27

Closing With Confidence Series – Part II – August 28

Benchmarking for Performance and the Performance Ratios Every Mortgage Banker Must Know – September 3

Non-Agency Training Series: Jumbo Loans – September 16

Smart Strategies to Retain, Recapture, & Grow Your Servicing Portfolio – September 24

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.