CREF Policy Update: MBA Update on HUD Operations, Recommendations for FHA, Ginnie Mae Program Improvements
MBA Update on HUD Operations, Recommendations for FHA, Ginnie Mae Program Improvements
MBA continues to monitor ongoing developments at the Department of Housing and Urban Development (HUD), including the Federal Housing Administration (FHA) and Ginnie Mae, regarding staffing, funding, and other activities.
Additionally, as the agencies develop their Agency Reduction in Force (RIF) and Reorganization Plans (ARRPs) – due to the Office of Management and Budget (OMB) and Office of Personnel Management (OPM) by Thursday, March 13 – MBA has been communicating to administration senior staff the importance of having appropriate processes and staffing levels in place to ensure the continuity of programs and functions that serve both single-family and multifamily real estate finance.
• As agencies initiate this process, there could be significant potential business-to-government disruption risks that impact lenders, servicers, and their customers.
Why it matters: Last month, MBA sent recommendations to HUD (both multi- and single-family in nature) that offer sensible changes to improve and/or enhance agency lending programs, lower the cost of lending, boost supply and affordability, and ensure the continued support for commercial and multifamily investment. These recommendations include, among others:
• Reverse New Energy Code Requirements and Flood Rule
• Lower Multifamily FHA Loan Costs
• Reevaluate FHA Environmental Rules; and
• Simplify Davis-Bacon Rules
What’s next: While also buttressing these efforts with targeted outreach to Capitol Hill, MBA is seeking more clarity from HUD on its staffing and operations decisions and will keep members informed of any relevant updates.
For more information, please contact Megan Booth at (202) 557-2740, Jamie Woodwell at (202) 557-2936, or Bill Killmer at (202) 557- 2736.
FHFA and CFPB Director Nominees Pulte and McKernan Reported to Floor
Last week, the Senate Banking Committee favorably reported the nominations of William Pulte to be the Director of the Federal Housing Financing Agency (FHFA) and Jonathan McKernan to be the Director of the Consumer Finance Protection Bureau (CFPB). The Banking Committee voted 15-9 in favor of Pulte, with Senators Ruben Gallego (D-AZ) and Angela Alsobrooks (D-MD) joining the Republicans on the committee in moving the nomination to the floor. McKernan’s nomination advanced on a party-line vote of 13-11.
What they’re saying: In a press statement, MBA President and CEO Bob Broeksmit, CMB, said, “We appreciate the importance being placed on William Pulte’s and Jonathan McKernan’s nominations to lead the FHFA and CFPB, respectively, and urge Senate leadership to schedule floor votes on their confirmations as soon as possible.”
Go deeper: Committee Republicans demonstrated their united support for these two nominees by moving their confirmation votes so quickly after their confirmation hearing just a week ago. By contrast, the panels’ Ranking Member Elizabeth Warren (D-MA) said the nominees failed to provide meaningful responses to questions for the record (QFRs) submitted after their hearing. She also expressed concerns about both Pulte and McKernan’s abilities to run their respective agencies without [what she considers] undue policy interference from the White House.
Why it matters: If confirmed, McKernan will play a key role in which CFPB regulations of concern to the housing finance industry are reformed, withdrawn or reconsidered through the notice and comment regulatory process, as well as determining the scope and nature of CFPB’s enforcement activities going forward. Similarly, Pulte will lead FHFA and that agency’s numerous efforts that impact MBA members, including any actions taken jointly with the Treasury Department to release Fannie Mae and Freddie Mac from their current conservatorship status.
What’s next: Senate Banking Chair Tim Scott (R-SC) will work with Senate Majority Leader Thune (R-SD) to schedule confirmation votes regarding Pulte and McKernan by the full Senate. The timing of those floor votes is yet to be determined, but could take several weeks to schedule given the backlog of other Executive Branch nominations already in the Senate queue.
For more information, please contact George Rogers at (202) 557-2797 or Ethan Saxon at (202) 557-2913.
MBA Monitoring Developments Ahead of Possible March 15 Government Shutdown
Though recent negotiations suggest some room for optimism, congressional leaders remain in negotiations ahead of a deadline of 11:59 p.m. ET on Friday, March 14, to pass what would likely be a Continuing Resolution (CR) – either short-term (weeks or months) or through the rest of Fiscal Year (FY) 2025 (September 30, 2025). MBA remains directly engaged with lawmakers in both chambers of Congress and with affected regulators. Starting on Saturday, March 15, a shutdown would necessitate a furlough of certain federal employees and significant curtailment of certain operations requiring agency staff intervention or action at the Departments of Housing and Urban Development, Veterans Affairs, and Agriculture.
• National Flood Insurance Program (NFIP) authorities are also scheduled to expire on March 15. MBA continues to advocate for an extension of NFIP’s authority – including a possible separate/targeted authorization measure – to avoid disruptions to the housing market.
Go deeper: Congress passed a CR on Dec. 21, 2024, that extended FY 2024 funding levels until March 14, following lawmakers’ failure to pass a full FY 2025 budget before the start of the new FY on October 1, 2024.
What’s next: Given that short-term shutdown threats have become somewhat routine, MBA anticipates that most agencies’ plans for maintaining essential functions will remain the same under the new Administration.
• Once confirmed, MBA will provide a member guide that outlines the potential impacts to single-family and multifamily government lending programs.
A shutdown lasting a few days would only slightly inconvenience single-family and multifamily mortgage markets. A longer delay would have much more severe and disruptive impacts to members and the consumers, end users, and customers they serve.
For more information, please contact Bill Killmer at (202) 557-2736 and Pete Mills at (202) 557-2858.
HUD Delays Building Energy Standards Rule for New Construction
Last week, HUD announced a six-month delay until Sept. 10, 2025, on the implementation of its final rule on Energy Efficiency Building Standards. The rule requires any new construction with FHA-insured and Department of Agriculture-guaranteed (USDA) financing to use significantly newer building codes that most states have yet to adopt.
• HUD said the six-month delay will provide additional time for them to “review questions of fact, law and policy supporting the Final Determination and determine the need for HUD to develop further technical assistance.”
• Single-family implementation: November 2025 to May 28, 2026. Multifamily: May 2025 to Nov 28, 2025.
Go deeper: Last year, MBA urged HUD and USDA to reconsider the impact of this proposal on affordable housing, and called for reversing the rule in a list of recommendations sent to HUD last month (as referenced earlier).
• MBA believes that reversing this policy is critical to maintaining affordable FHA financing for new homes and apartments and ensuring that new housing supply remains within reach for hardworking families.
Why it matters: Once into effect, newly constructed multifamily, single-family, Public Housing Capital Fund, and competitive grants must comply with the 2021 International Energy Conservation Code (IECC) in order to be eligible for FHA or USDA financing.
• Notably, only five U.S. states have adopted the 2021 code. 32 states are still on the 2009 code or earlier.
What’s next: MBA will continue to highlight its concerns with the policy – and in particular its implications for housing costs – in conversations with FHA, USDA, the White House, and on Capitol Hill.
For more information, please contact Megan Booth at (202) 557-2740.
Federal Government Office Leases Terminated; GSA Publishes, Deletes List of Buildings for Potential Closing or Sale
Amidst numerous actions regarding staffing, funding, and/or contract cancellations at federal agencies, the Department of Government Efficiency (DOGE) has published a running list that displays (see Real Estate section) 748 lease federal government office lease terminations, “totaling 9,587,384 square feet and $468 million in lease savings.”
• Various press reports put the dollar amounts and square footage lower, if the figures include paid lease months and those already set to expire.
Additionally, the General Services Administration (GSA) published (it is now deleted) a list of more than 440 federal properties across the country it had identified to close or sell. The page now states that a “non-core property list is coming soon.”
Why it matters: The abrupt cancellation of office leases adds more potential ambiguity to already uncertain office markets in cities across the country – and creates challenges for owners of properties where federal leases are cancelled and for a market where large amounts of (often antiquated) space becomes available for lease or sale. There will likely also be opportunities for investors who can reinvent vacated space as apartments, hotels, repositioned office, or other uses.
What’s next: MBA is closely monitoring this situation and will keep members updated on any relevant developments.
For more information, please contact Jamie Woodwell at (202) 557-2936 or Megan Booth at (202) 557-2740.
Key Subcommittee and Task Force Panels Tackle Questions on Housing Supply, GSE Release
Earlier last week, the House Financial Services Committee (HFSC) convened two separate hearings that explored questions surrounding: (1) housing supply and affordability concerns and (2) monetary policy considerations impacting the well-being of the broad U.S. economy (including mortgage markets).
Why it matters: At the hearing held by the panel’s Subcommittee on Housing and Insurance, lawmakers debated the impact of regulatory barriers on housing development. Subcommittee Chairman Mike Flood (R-NE) – and other Republicans – argued that environmental regulations, banking/lending restrictions, and zoning laws are limiting new housing construction. Subcommittee Ranking Member Emanuel Cleaver (D-MO) and full HFSC Ranking Member Maxine Waters (D-CA) countered that financial institutions and contractors often use their support for deregulatory efforts to “avoid accountability.” The discussion also explored expanding housing supply through greater production of manufactured housing, the repurposing of commercial buildings for residential use, and an increase in HUD funding and the state-by-state allocation of Low-Income Housing Tax Credits.
Separately, the HFSC’s Task Force on Monetary Policy hearing examined the Federal Reserve’s use of its monetary policy mandate on the broad U.S. economy – including within housing markets across the country. GOP lawmakers debated the history of the Fed’s purchase of mortgage-backed securities (MBS), with some arguing the central bank should exit the MBS purchase market altogether, while Rep. Brad Sherman (D-CA) warned that “privatizing [conservatorship release]” Fannie Mae and Freddie Mac would ultimately lead to higher mortgage rates. High interest rates and their impact on first-time homebuyers was another point of discussion, with lawmakers emphasizing the affordability challenges facing younger families. Additionally, proposed tariffs on Mexico and Canada drew criticism from Democrats, who warned that increased costs for building materials would further constrain housing affordability.
Go deeper: For a more complete breakdown of both hearings, including key policy discussions and witness testimony, find a summary of the Housing and Insurance Subcommittee hearing here and the Task Force on Monetary Policy hearing here.
What’s next: MBA will continue to advocate for policies that seek to expand housing supply, improve access to credit, and undergird stable single- and multifamily mortgage markets – while remaining engaged with lawmakers from both parties to promote bipartisan solutions that directly address these challenges.
For more information, please contact Madisyn Rhone at (202) 557-2741 or Bill Killmer at (202) 557-2736.
Attend MBA’s National Advocacy Conference on April 8-9; Over 400 Advocates Registered
Join us in Washington, D.C. to meet with key policymakers, network with colleagues across the industry, and hear from policy experts on the topline issues impacting the industry. Key advocacy issues to be covered in a dedicated commercial/multifamily track include the potential for GSE release, real estate-related tax policy priorities, legislation intended to increase housing supply, property insurance, and more.
Confirmed speakers include GOP Conference Chair Congresswoman Lisa McClain (R-MI), key House Financial Services Committee member Ritchie Torres (D-NY), managing editor of Hotline at National Journal Kirk A. Bado, and more.
An exclusive reception will be held on Tuesday, April 8, at the Renwick Gallery of the Smithsonian American Art Museum. Lend your voice to our efforts and bring your expertise and experiences to the table.
• Check out MBA’s group passes pricing.
Why it matters: Your participation at NAC ensures that members of the 119th Congress and the administration understand how proposed legislation affects your employees, your end users, and the communities you (and they) serve.
What’s next: MBA will use our NAC25 efforts as a key means to directly advocate of behalf of the policy priorities (both legislative and regulatory) that impact the real estate finance industry.
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:
• The Evolving Role of Document Management in Commercial Real Estate Lending – March 13
• Understanding Parametric Insurance: A Lender’s Guide to Maximizing Protection and Efficiency – April 10
• Uncovering Fraud in Commercial/Multifamily Lender-Placed Insurance – April 15
• Builder’s Risk Insurance: Analysis & Perspectives – April 17
• Basics of Commercial Loan Closing and Loan Documentation – May 1
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.
