CREF Policy Update: President Trump, FHFA Director Pulte Hint Further on the GSEs’ Future; Fannie Mae Announces AI Fraud Detection Technology Partnership with Palantir
President Trump, FHFA Director Pulte Hint Further on the GSEs’ Future; Fannie Mae Announces AI Fraud Detection Technology Partnership with Palantir
Last week, President Donald Trump and Federal Housing Finance Agency (FHFA) Director Bill Pulte in social media posts and in TV interviews reiterated last week’s news that the Administration is considering “bringing Fannie Mae and Freddie Mac public.”
• While the details on timing and next steps remain scant, President Trump in a Tuesday night Truth Social post said, “I am working on TAKING THESE AMAZING COMPANIES PUBLIC, but I want to be clear, the U.S. Government will keep its implicit GUARANTEES, and I will stay strong in my position on overseeing them as President.”
Why it matters: As President and CEO Bob Broeksmit, CMB, shared in a video address, MBA stands ready to work with the administration on a thoughtful exit plan with an appropriate timeline, and that our association believes strongly that any release must include an explicit federal backstop – passed by Congress and paid for by the GSEs – of Fannie and Freddie’s mortgage-backed securities to protect consumers, taxpayers, and the housing finance system.
Also, Fannie Mae announced the launch of a new, AI-powered Crime Detection Unit partnership with software company Palantir.
• According to the release, Fannie Mae’s Crime Detection Unit “will help detect and prevent mortgage fraud with speed and precision never before seen in the U.S. housing market.” The project will focus initially on incoming mortgages in Fannie Mae’s multifamily business and could expand to single-family mortgages at Fannie Mae and/or be used at Freddie Mac in the future.
What’s next: MBA is engaged with the White House, Treasury Department, and FHFA regarding all activities at the GSEs – as well as conversations on the two agencies’ futures – and will continue to provide relevant updates to members.
For more information, please contact Sasha Hewlett at (202) 557-2805 and Megan Booth at (202) 557-2470.
FDIC Releases First-Quarter 2025 Quarterly Banking Profile
Last Wednesday, the Federal Deposit Insurance Corporation (FDIC) published its first quarter performance results for FDIC-insured institutions.
• Banks’ holdings of multifamily mortgages grew from $629 billion at the end of Q4 2024 to $639 billion at the end of Q1 2025. Their holdings of other income-producing property loans grew from $670 billion to $674 billion.
• The noncurrent rate of multifamily mortgages rose to 1.05%, the highest since 2013. For comparison, that rate peaked at 4.71% during the Great Financial Crisis. The noncurrent rate for other income producing properties (other nonfarm nonresidential) fell for the second quarter, to 1.7%.
• In a special call-out, the FDIC noted, “looking deeper into the CRE portfolio, the elevated PDNA [past-due and nonaccrual] rates of non-owner-occupied property loans persisted in the first quarter, driven by the portfolios of the larger institutions. The industry’s volume of PDNA non-owner-occupied CRE loans increased $13.0 million, or 0.1%, from the previous quarter.”
Why it matters: Overall, the banking industry remains resilient as loan balances increased by approximately $62 billion in the first quarter. The FDIC cited multifamily CRE as a contributor to quarterly loan growth.
What’s next: MBA will continue to monitor the latest industry trends and will engage with federal banking agencies to support members’ priorities.
For more information, please contact John Lammle at (202) 557-2790 or Judith Ricks at (202) 557-2745.
Participate in MORPAC Action Week, June 23-27!
On June 23, MORPAC, MBA’s Political Action Committee, officially kicks off its annual Action Week. As the only federal PAC that represents the entire real estate finance industry, MORPAC provides access to candidates for federal office who will shape policies that impact the interests of MBA’s CREF members.
• MORPAC is aiming to raise $225,000 during its 2025 Action Week – from at least 20 participating member companies.
• We need your help! Sign up now to make a bigger impact by running a MORPAC campaign and encourage your employees to directly participate in the political process.
Why it matters: MORPAC is a powerful tool for driving policy change, providing MBA members with a platform to amplify their voice, educate decisionmakers, and channel financial resources to support pro-industry candidates, and advance MBA’s legislative agenda.
What’s next: If you are interested in getting involved during MORPAC Action Week, please fill out this link.
For more information, please contact Erin Reilly at 202-557-2751.
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:
• MBA Roundtable with CMF Council Leadership – June 12
• Decoding Blanket Property Insurance for Commercial and Multifamily Properties – June 26
• Essential Overview of Commercial/Multifamily Business Income Insurance – July 15
• Navigating Coverage and Risk for Commercial Catastrophic Insurance – July 21
• Trends in Commercial Non-Bank Lending: Evolving Strategies & Creating Operational Advantages – Sept. 9
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.
