CREF Policy Update
REGISTER: Town Hall with MBA Leadership: The New Administration’s First 100 Days
Thursday, March 6, at 3:00 p.m. ET, MBA President and CEO Bob Broeksmit, CMB, and MBA leaders will host a town hall webinar on the latest developments in the single-family and commercial/multifamily arenas under the Trump administration and MBA’s ongoing work on them.
• Register here for MBA’s new series covering the first 100 days of the Trump administration. Attendees can send questions beforehand to First100Days@mba.org.
Why it matters: MBA is monitoring the ongoing developments at the federal agencies and is engaging appropriately with the Trump administration to attempt to ensure agencies’ activities and future priorities are aligned to promote investment and growth in real estate markets.
• Ongoing media reports on actions from the Department of Government Efficiency (DOGE), and memos/directives from the Office of Management and Budget (OMB), the Department of Housing and Urban Development (HUD), the Consumer Financial Protection Bureau (CFPB), and others, have indicated that significant changes have occurred and/or are underway regarding staffing, rulemaking, funding, and/or contract cancellations at federal agencies.
MBA remains actively engaged with the senior appointees and key staff in place at all agencies that impact the industry and continues to:
• Advocate for the continuation of programs and policies that benefit the real estate finance market, borrowers, and the industry;
• Recommend sensible changes that lower cost of lending, promote competition, and pass savings along to prospective homeowners and renters and ensure the continued support for commercial and multifamily investment; and
• Warn against potential actions that would lead to disruptions in the single-family and commercial/multifamily markets.
What’s next: MBA members will also receive the latest on the industry’s top priorities and issues to be covered at MBA’s upcoming National Advocacy Conference (NAC), taking place April 8-9 in Washington, D.C. Key advocacy issues to be covered in a dedicated commercial/multifamily track at the conference will include the potential for GSE release, real estate-related tax policy priorities, legislation intended to increase housing supply, property insurance, and more.
For more information, please contact Bill Killmer at (202) 557- 2736, Megan Booth at (202) 557-2740, or Jamie Woodwell at (202) 557-2936.
FHFA Director Nominee William Pulte and CFPB Director Nominee Jonathan McKernan Testify at Senate Banking Committee Hearing
The Senate Banking Committee held a hearing last week to consider a slate of Executive Branch nominees, including 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 CFPB.
In response to questioning at the hearing, Mr. Pulte notably said about the GSEs, “While their conservatorships should not be indefinite, any exit from conservatorship must be carefully planned to ensure the safety and soundness of the housing market without upward pressures on mortgage rates.” He also said, “If confirmed, my number one mission will be to strengthen and safeguard the housing finance system. Safe and sound housing markets are the foundation of American homeownership…”
Ranking Member Elizabeth Warren (D-MA) and other Democratic committee members voiced strong concerns regarding Mr. McKernan’s commitment to the CFPB’s mission, given the OMB and DOGE actions and statements about reducing the Bureau’s worker headcount and activities. Mr. McKernan consistently affirmed his intention to “follow the law” if confirmed, but refrained from making specific regulatory commitments.
A summary of the hearing can be found here.
Go deeper: McKernan, if confirmed, could potentially elect to have the Bureau’s staff revisit rules impacting CREF members such as Section 1071 small business – and Home Mortgage Disclosure Act (HMDA) – reporting requirements.
Why it matters: If confirmed, Mr. McKernan will play a key role in determining which specific CFPB regulations are reconsidered through the notice and comment regulatory process, as well as the Bureau’s enforcement activities. Similarly, Mr. Pulte will play a pivotal role on many issues pertinent to the housing GSEs important to MBA’s members, including the potential for release of Fannie and Freddie from their current conservatorship status.
What’s next: Both nominees will have to answer a multitude of questions for the record (QFRs) submitted by Senators on the Banking Committee, including the potential review of some topics suggested by MBA prior to the hearing. Once those written responses have been submitted, Senate Banking Chair Tim Scott (R-SC) can schedule a committee vote on their nominations. If reported favorably, they will then be scheduled by Republican leaders to receive a confirmation vote by the full Senate. The timing for that floor vote consideration remains unclear at this time.
For more information, please contact George Rogers at (202) 557-2797 or Ethan Saxon at (202) 557-2913.
House Adopts GOP Budget Resolution
In a significant step for House Republicans, the House of Representatives passed its budget resolution by a narrow 217-215 vote, with Rep. Thomas Massie (R-KY) joining all Democrats in opposition. The resolution, a priority for Speaker Mike Johnson (R-LA) and House GOP leadership, now moves to the Senate, where its path forward remains uncertain.
Key takeaways:
• The House budget resolution provides a framework for tax, spending, and economic policy but does not carry the force of law.
• Differences between the House and Senate GOP approaches may complicate efforts to pass an identical resolution, which is necessary to unlock the reconciliation process and begin a major tax policy debate.
• Senate Republicans, including Majority Whip John Thune (R-SD), have raised concerns that the House resolution does not provide sufficient flexibility to make the 2017 Tax Cuts and Jobs Act (TCJA) provisions permanent.
• Speaker Johnson has indicated he wants “as few changes as possible” in the final budget resolution.
• Ongoing negotiations between House and Senate GOP leaders, as well as discussions with the White House, will shape next steps.
Why it matters: Budget resolutions serve as internal congressional guideposts for tax and spending policy. If and/or when the House and Senate agree on an identical resolution, the reconciliation process can begin—allowing legislation, including potential tax policy changes, to pass the Senate with a simple majority rather than the more frequently required 60 vote supermajority.
For MBA, the tax implications of reconciliation are critical, particularly in the debate over expiring Tax Cuts and Jobs Act (TCJA) provisions and the possible use of any real estate-related “pay-fors” to offset the costs of a package. Ensuring a stable and pro-growth real estate finance tax framework remains a key priority.
What’s next: Timing for Senate consideration of the House budget resolution remains unclear, with continued intra-party negotiations expected. If agreement on a unified budget resolution proves challenging, alternative legislative approaches—such as a possible set of smaller, bipartisan tax measures—may emerge. MBA will continue engaging with key congressional leaders and tax writers to ensure our commercial/multifamily real estate finance priorities are best reflected in any legislative outcomes.
For more information, please contact George Rogers at (202) 557-2797, Ethan Saxon at (202) 557-2913, Madisyn Rhone at (202) 557-2741, or Bill Killmer at (202) 557-2736.
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.
