CREF Policy Update: Congress and White House Reach Agreement to Fund Government Through January Next Year
Congress and White House Reach Agreement to Fund Government Through January Next Year
As widely reported, the full Senate last Monday passed a modified version of a Continuing Resolution (CR) designed to keep the federal government funded through Jan. 30 next year by a final vote of 60 to 40. That CR was paired with a so-called “minibus” of three appropriations bills designed to also fund Fiscal Year (FY) 2026 military construction (MilCon) projects and Department of Veterans Affairs (VA) operations, FY26 operations for the Department of Agriculture (USDA), and FY26 resources for the operations of the U.S. House and Senate (Legislative Branch).
• The House, in turn, passed that same measure (Senate Amendment to H.R. 5371, the Continuing Appropriations and Extensions Act, 2026) last Wednesday night by a vote of 222 to 209, following several hours of debate. This action came after fourteen unsuccessful attempts by the Senate to advance a prior “clean” stop-gap House bill that would have funded the government through Nov. 21, 2025. President Donald Trump immediately signed the funding measure into law Wednesday night.
Go deeper: In addition to temporarily ending the longest government shutdown in U.S. history, H.R. 5371 (as amended) would also reverse more than 4,000 federal layoffs (and prevent any future layoffs through January). Importantly for our industry, the package would also reauthorize the National Flood Insurance Program (NFIP) through Jan. 30, 2026 and “re-open” FHA for new multifamily loan applications. It also contains a narrow set of technical corrections to MBA-supported Public Law 119-31 (previously H.R. 1815) that restored VA Home Loan program partial claims authority as a loss mitigation option for servicers (pending the new law’s implementation by the VA).
• A bipartisan group of senators successfully negotiated (and “whipped” the needed votes to pass) the Senate solution to end the funding stalemate after assurances from the White House and Senate Majority Leader John Thune (R-SD) that a vote on extending a set of expiring Affordable Care Act subsidies would be scheduled to take place in the Senate during the second week of December.
Why it matters: As reported these last several weeks, MBA prepared a detailed member guide that outlined the impacts the funding impasse would have on single-family and multifamily government lending programs. The prolonged shutdown necessitated furloughs and other Reductions in Force (RIFs) of many federal employees, curtailing operations at key agencies such as HUD (FHA and Ginnie), Treasury, the VA, and USDA. To avoid long-term disruptions to the housing and flood insurance markets, MBA and a broad industry coalition strongly advocated for a restoration of NFIP program authority.
• Moreover, MBA issued a Nov. 7 press statement from CEO Bob Broeksmit, CMB, calling for lawmakers to bridge their differences and end the shutdown as quickly as possible. That action was buttressed by a Nov. 10 statement from MBA and a broad coalition of financial trade groups that “welcomed news of the bipartisan deal to reopen the government” and “urged lawmakers to support the [negotiated] agreement.”
What’s next: Lawmakers will continue discussions aimed at enacting the remaining elements of an FY26 spending package (or individual FY26 appropriations bills) for all affected federal agencies prior to January 30, 2026. MBA will continue to urge key administration officials and congressional leaders to quickly strike a durable FY26 funding agreement that emphasizes our industry’s key priorities and avoids any further disruptions to the national economy – and the housing and real estate ecosystems.
For more information, please contact Bill Killmer at (202) 557-2736 or Jamie Woodwell at (202) 557-2936.
MBA Joins Joint Trades Seeking Relief from SEC Filing Disclosures
Last Wednesday, MBA signed a Petition for Rulemaking to amend SEC Rule 17g-5 with other trade groups. While originally well intentioned, to crackdown on “rating shopping” and conflicts of interest, the Rule has seen little practical use and created filing burdens on the CRE industry.
• The Rule requires Nationally Recognized Statistical Rating Organizations (NRSROs) to create a password-protected website and post transaction-related details for their initial rating of structured financial products like CMBS. Furthermore, it requires industry participants to work together to ensure that the website is updated with relevant transaction information related to ongoing surveillance of the product.
• The Rule also requires information relayed via conversation to be posted to the website, resulting in a significant delay in sharing timely information between the NRSROs and market participants.
• To MBA’s knowledge, no unsolicited ratings have been issued, and no investors have requested that outside NRSROs issue competing ratings on existing CRE transactions.
Why it matters: The posting requirements create an unnecessary burden and expense for the CRE industry. Each market participant, from issuers to service providers, must also dedicate personnel and technology resources to capture and post communications and materials for the life of the transaction.
What’s next: MBA will remain engaged throughout the petition process and inform our members of any new developments.
For more information, please contact John Lammle at (202) 557-2789.
Proposed Changes to Small Business Lending Rule
On Thursday, the Consumer Financial Protection Bureau (CFPB) published a proposed rule to update the 1071 small business reporting rules.
• The proposal would raise the origination threshold from 100 to 1,000 covered credit transactions for each of two consecutive years and proposes to change the gross annual revenue threshold in the rule’s definition of small business from $5 million or less to $1 million or less. The proposal does not include an across-the-board exemption for investment property.
Why it matters: MBA has sought changes to the 1071 rule to ensure it is capturing pertinent data related to small business lending – but not create an undue burden on lenders who close few of these loans, or to capture unnecessary information.
What’s next: MBA will provide comment on the proposal by the deadline of December 15. MBA will support changes to the definition and the threshold but will also advocate for clarification that the investment properties exclusion from §1071 applies to all investment property lending.
For more information, please contact Megan Booth at (202) 557-2740.
State Legislatures in Prefiling; MBA’s State Legislative Database Tool and Upcoming Training
This month, state legislatures across the country have begun pre-filing legislation for the new year. MBA continues to utilize its comprehensive State Legislative Database to brief members of the State Legislative and Regulatory Committee (SLRC) on the ongoing policy challenges in the states. Additionally, the database is a free member benefit.
Go deeper: Once a member logs in using their MBA credentials, they can track any current piece of real estate finance-related legislation in any state. Additionally, members of the SLRC receive biweekly email updates on the status of major bills.
Why it matters: The policy challenges facing member companies – particularly state-licensed firms – are voluminous, and the database actively tracks thousands of introduced bills. The system offers members a single and effective way to stay abreast and informed of any developments by “flagging” or “grouping bills” for automatic email updates.
What’s next: MBA’s next free, monthly database training is Wednesday, Dec. 3 at 3:00 PM ET.
• To view key residential and commercial/multifamily policy issues the SLRC is tracking, click here.
For more information on the functions of the database, please contact Liz Facemire at (202) 557-2870.
To sign up for the next training session or to be added to the SLRC for biweekly updates, please contact Ainsley Zimmer at (202) 557-2796.
Upcoming MBA CREF Council 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.
Upcoming virtual meetings include:
• Servicer Council: Nov. 20
• FHA Council: Dec. 9
• Bank Council: Dec.10
For more information, click on the links above and/or contact Kelli Burke at (202) 557- 2742.
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, opportunities, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars – all complimentary to MBA members:
• Exploring Data Centers – Nov. 18
• AI Speed Learning for the Mortgage Professional – Nov. 20
• Introduction to LIHTC for Mortgage Professionals – Dec. 10
• Commercial/Multifamily Capital Markets and Securitization – Dec. 16
• External CMF Benchmarking Requirements – Jan. 14
• Internal CMF Benchmarking Requirements – Feb. 18
• Introduction to Commercial Mortgage-Backed Securities – April 8
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.
