
CREF Policy Update: MBA Applauds HUD Underwriting Enhancements; 119th Congress Sworn In; MORPAC and MAA Leadership News

MBA Applauds HUD Move on Multifamily Underwriting Enhancements
Last Wednesday, following significant advocacy from MBA, the Department of Housing and Urban Development (HUD) updated the underwriting standards under its 223(d)(4) and 223(f) programs and created new requirements for certain properties targeted to middle-income households.
What they’re saying: In a press statement following HUD’s announcement, MBA President and CEO Bob Broeksmit, CMB, said, “HUD’s decision to refine FHA underwriting criteria to more appropriate levels should result in an increase in production of much-needed rental housing by tens of thousands of units over the next three years at little to no additional risk to the FHA fund or taxpayers.”
• Mortgagee Letter 2025-03 decreases the required debt service coverage ratios (DSCRs) for market rate (or Low-Income Housing Tax Credit – LIHTC – without rent advantage) to 1.15 and 7% vacancy factor, and for LIHTC properties with rent advantage to 1.11 and vacancy factor of 5.
• Mortgagee Letter 2025-02 provides new underwriting for 221(d)(4) properties where at least 50% of units are rent restricted at up to 120% of AMI and a have a use restriction monitored by a state or local governmental entity. The use period must be up to 10 years, but waivers can be sought for restrictions from 5-10 years. These loans will have the DSCR reduced from 1.176x to 1.11x and the loan-to-cost ratio is increased from 85% to 90%.
What’s next: MBA will continue its advocacy with HUD to ensure strong liquidity for multifamily production and will seek additional ways to encourage the development of more affordable rental housing.
For more information, please contact Megan Booth at (202) 557-2740.
119th Congress Sworn In
The U.S. House of Representatives and Senate reconvened to formally kick off the 119th Congress, with Republicans holding narrow majorities in both Chambers. Speaker of the House Mike Johnson (R-LA) was reelected by a razor-thin margin, and Senator John Thune officially took the helm as Senate Majority Leader following his win in the Senate GOP leadership race in November.
• A Trump administration and Republican control of both chambers of Congress could lead to sweeping attempts at changes to regulatory and legislative policy in 2025 and beyond, from a major tax policy debate, to increased interest in a release from conservatorship for the housing GSEs (Fannie Mae and Freddie Mac), and new leadership at HUD, the Consumer Financial Protection Bureau (CFPB), Federal Housing Finance Agency (FHFA), and Treasury, among other key regulatory agencies.
Go deeper: MBA will continue to monitor and update members on any important organizing developments – in both the House and Senate – and on both sides of the political aisle. The rosters of several key committees that have jurisdiction over the single-family and commercial/multifamily issues of most relevance to our members have been finalized.
• See House and Senate Committee rosters.
• Senate committee hearings will begin next week – and continue in the following weeks – for President-elect Donald Trump’s cabinet picks, including on January 16 for Secretary of the Treasury Nominee Scott Bessent (Senate Finance Committee) and HUD Secretary Nominee Scott Turner (Senate Committee on Banking, Housing, and Urban Affairs).
What’s next: With 12 new Senators and 66 freshmen lawmakers in the House, MBA’s National Advocacy Conference (NAC) is our membership’s best upcoming opportunity to ensure their collective voices are heard when they meet with policymakers and elected officials in Washington, D.C., to discuss key industry policy priorities, including a dedicated CREF track. Register early and save.
For more information, please contact Bill Killmer at (202) 557-2936, Ethan Saxon at (202) 557-2913, George Rogers at (202) 557-2797, and Madisyn Rhone at (202) 557-2741.
MORPAC and MAA Appoint New Leadership
Last Wednesday, MBA’s Political Action Committee (MORPAC) and the Mortgage Action Alliance (MAA) appointed new leadership for the 2025-2026 election cycle.
Nanci Weissgold, Partner and Co-Chair of the Alston and Bird law firm’s Financial Services Group was appointed Chair of MORPAC, and Bill Nelson, Executive Vice President, Secondary and Mortgage Operations of Standard Mortgage Corporation, was appointed MAA Chair. Both individuals exemplify industry leadership and display commitment to expanding the reach of MBA’s political advocacy efforts.
Why it matters: These volunteer-based chairs of MBA’s Advocacy programs, including MORPAC and MAA, sit on MBA’s Board of Directors and serve as a liaison between membership and politics. The goal for these positions is to grow industry engagement on Capitol Hill and in state capitals across the country, ensuring the successful pursuit of our industry’s legislative priorities.
What’s next: MBA staff will work with the MORPAC and MAA Steering Committee chairs and at-large membership to meet/exceed advocacy goals, all while maintaining MBA’s political “seat at the table.”
For more information, please contact Jamey Lynch, AMP at (202) 557-2818.
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:
• Fundamentals of Commercial Insurance Issues and Problems – Jan. 28
• CREF Career Conversations: Insights from Industry Leaders – Jan. 28
• Navigating and Ensuring Accurate Reporting with the MBA Commercial and Multifamily Inspection Form – Jan. 30
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.