CREF Policy Update: CFPB Rescinds Dozens of Guidance Documents
CFPB Rescinds Dozens of Guidance Documents
On Friday, the Consumer Financial Protection Bureau (CFPB or the Bureau) announced that it is withdrawing a total of 67 guidance documents, including 13 advisory opinions (AOs), eight policy statements, and seven interpretative rules. The CFPB said its leadership conducted a review and determined it will withdraw guidance materials to “afford staff an opportunity to review and consider (1) whether the guidance is statutorily prescribed, (2) whether the interpretation therein is consistent with the relevant statute or regulation, and (3) whether it imposes or decreases compliance burdens.”
• The Bureau also stated that it’s withdrawing guidance because of President Trump’s directives to deregulate and streamline bureaucracy, and therefore not having a pressing need for interpretive guidance to remain in effect.
• The Bureau noted that “while some guidance might be reissued in the future, the Bureau does not intend to prioritize the enforcement of such guidance against parties that do not conform to the guidance during the pendency of any withdrawal.”
Why it matters: Following the CFPB’s April 11 memorandum announcing a comprehensive review and rescission process (which MBA supported), MBA shared a compilation of existing policy statements, interpretative rules, advisory opinions, and other guidance materials that should be retained with respect to the mortgage industry. It appears that all of those items were retained.
• A list of all guidance documents withdrawn can be found starting on page four. Several guidance documents pertinent to real estate finance were withdrawn, including the 1071 small business reporting rule.
What’s next: MBA will conduct a more exhaustive review of today’s announcement and will share its analysis.
For more information, please contact Justin Wiseman at (202) 557- 2854, Alisha Sears at (202) 557-2390 or Megan Booth at (202) 557-2740.
Federal Reserve Keeps Rates Unchanged
The Federal Reserve held the federal funds rate at a target range of 4.25%-4.50% at its latest meeting on Wednesday.
Why it matters: The Committee’s statement said that “it will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals.”
• The statement also said that the Committee’s assessments “will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.”
In a press statement, MBA’s SVP and Chief Economist Mike Fratantoni said, “The FOMC held the federal funds rate target steady at its May meeting, dismissing the negative first-quarter GDP reading as solely due to volatility in international trade flows but noting that risks to its inflation and employment targets have increased given the heightened policy uncertainties.”
Fratantoni added, “MBA forecasts that the risks to growth and the job market will wind up being the bigger concern this year, which will lead the Fed to resume cutting short-term rates in the second half of the year.”
For more information, please contact Mike Fratantoni at (202) 557-2935.
White House FY 2026 “Skinny Budget” Released
Recently, the Trump administration released an outline of its Fiscal Year 2026 (FY26) budget proposal. Each year, the President’s budget request, otherwise known as its “wish list,” provides a blueprint for the Administration’s priorities as Congress traditionally kicks off its appropriations process for the new fiscal year.
As expected, the budget highlights several spending reductions and program terminations, including:
• Reducing non-defense discretionary spending by $163 billion (23%) from the 2025 enacted level.
• Savings come from eliminating DEI and climate initiatives, and “moving programs that are better suited for States and localities to provide.”
• Defense spending would increase by 13%, and appropriations for DHS would increase by nearly 65% to focus on border security matters.
Why it matters: Of note, the Administration is requesting a significant, $43.5-billion cut (43.6%) in discretionary budget authority for the Department of Housing and Urban Development (HUD), including moving housing vouchers to a state-budget based formula, requiring a two-year limit on rental assistance, and zeroing out the CDBG and HOME programs. The Budget Proposal would also cut $721 million from Rural Development, including eliminating rural housing vouchers.
• The particularly high-level budget proposal contained no references to homeownership or information on Federal Housing Administration (FHA), Veterans Affairs (VA), and Ginnie Mae commitment authorities or administrative initiatives.
What’s next: MBA is engaging with the Administration, Congress, and leaders at the federal housing agencies on FY 2026 appropriations and has been encouraged by their receptiveness and commitment to maintaining and/or promoting new effective solutions that bolster housing supply, improve affordability for both renters and borrowers, increase access to sustainable homeownership, and lead to positive outcomes for MBA members and their businesses.
• Additional details, as well as key supplemental materials – such as the “Analytical Perspectives” report that often contains discussions of longer-term policy priorities – should be released in the weeks ahead. MBA will report on additional budget details as they become available.
For more information, please contact Bill Killmer at (202) 557-2736 or Megan Booth at (202) 557-2740.
Senate Banking Committee Advances HUD Nominees Hughes, Woll; Fed Vice Chair Nominee Bowman
Last Tuesday, the Senate Banking Committee advanced the nominations of Andrew Hughes to be HUD Deputy Secretary and David Woll to be HUD General Counsel. The Committee also advanced the nomination of Michelle Bowman to be Federal Reserve Vice Chair. All three nominees were reported on party-line votes (13-11).
• Chairman Tim Scott (R-SC) noted Hughes’ “strong track record of operational leadership that will be instrumental in strengthening HUD’s efficiency and effectiveness in serving American families.” Chairman Scott also praised Woll’s “decades of legal and policy experience in housing” and said Bowman will bring “accountability and transparency to the Fed.”
Go deeper: Ranking Member Elizabeth Warren (D-MA) said the Trump administration is “in desperate need of serious officials who will serve the American people . . . . That is why I am so concerned about the nominees we are voting on today.” She noted that Bowman “signaled more Wall Street deregulation is on the way” . . . while saying that Hughes and Woll “seem unwilling to stand up against cuts that will undermine fair housing and make it harder to tackle skyrocketing housing costs.”
What’s next: Committee Chairman Scott will work with Senate Majority Leader John Thune (R-SD) to schedule confirmation votes for all three nominees by the full Senate in the foreseeable future.
For more information, please contact George Rogers at (202) 557-2797 or Ethan Saxon at (202) 557-2913.
Get Involved in MAA Action Week: May 12-16
MBA’s annual Mortgage Action Alliance (MAA) Action Week is taking place now (May 12-16!) More than 100 professional organizations are participating, including 40 state and local chapter associations.
• There’s still time to get involved and promote the importance of advocacy engagement within your company or state association. This industry-wide campaign allows ALL of us to play a part in the legislative and regulatory process – on issues that directly impact all real estate finance professionals. Active MAA engagement allows YOU and your company to drive positive change by adding your voice to our collective efforts.
Go deeper: During MAA Action Week, MBA and its participating organizations encourage you to engage with us via social media, online action and supported bills pages, and learn more about MBA’s federal political action committee, MORPAC.
Why it matters: MAA unites our entire industry. You and your company colleagues are the experts – and your voice is needed to play a part conducting this vital work – especially with so many new elected officials in the current Congress.
What’s next: MBA’s federal, bipartisan political action committee, MORPAC, will also be hosting its annual fundraising campaign on June 23-27. MORPAC provides access to build and strengthen relationships with pro-industry candidates and advance MBA’s legislative agenda.
For more information, please contact Jamey Lynch, AMP at (202) 557-2818 or Margie Ehrhardt at (202) 557-2708.
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:
• Mastering Commercial Insurance Modeling: Key Insights and Applications – May 27
• Introduction to Commercial Mortgage-Backed Securities – May 28
• MBA Roundtable with CMF Council Leadership – June 12
• Decoding Blanket Property Insurance for Commercial and Multifamily Properties – June 26
• 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.
