CREF Policy Update: MBA Applauds Senate Bill Introduction on FHA Multifamily Loan Limits
MBA Applauds Senate Bill Introduction on FHA Multifamily Loan Limits
Last Wednesday, Senators David McCormick (R-PA) and Ruben Gallego (D-AZ) introduced S.1527, the Housing Affordability Act, a bill designed to increase Federal Housing Administration (FHA) multifamily statutory loan limits.
A summary of the legislation can be found here.
What they’re saying: MBA President and CEO Bob Broeksmit, CMB, in a press statement applauded the introduction of the bill, stating, “MBA has long advocated for Congress to update FHA multifamily loan limits to levels that are consistent with housing and economic conditions.”
Broeksmit added, “Housing affordability and availability must be a top priority for policymakers and regulators this year. In addition to advocating for this important bill with Senators on both sides of the aisle, we are pushing for the introduction of companion legislation in the House and passage in both chambers as soon as possible.”
Why it matters: S. 1527 amends the National Housing Act to raise the multifamily statutory loan limits and updates the inflationary adjustment index from the Consumer Price Index (CPI) to the Price Deflator Index of Multifamily Residential Units Under Construction (published by the Census Bureau). Increasing FHA multifamily loan limits will ensure costs accurately reflect individual market costs and speed up FHA processing times to support enhanced multifamily housing construction.
What’s next: The legislation was referred to the Senate Banking Committee. MBA endorsed the legislation and is working to have companion legislation introduced in the House as soon as possible.
For more information, please contact Ethan Saxon at (202) 557-2913 or George Rogers at (202) 557-2797.
House Republican Reconciliation Package Continues to Take Shape
On Wednesday, the full House Financial Services Committee (HFSC) voted along party lines (30-22) to advance its portion of the House Republican reconciliation package, which is expected to include sweeping tax, energy, and border policy changes. The HFSC Republicans project their section of the emerging reconciliation bill would produce roughly $1 billion in the savings they were tasked with finding.
Go deeper: The proposal includes specific changes that would cap the amount of funding the Consumer Financial Protection Bureau (CFPB) can tap at 5 percent of the Federal Reserve’s operating expenses — down from the current limit of 12 percent. The measure would also rescind the unobligated balance of funds made available for the Green and Resilient Retrofit program for multifamily housing under the Inflation Reduction Act, as well as achieve savings by folding the Public Company Accounting Oversight Board (the non-profit corporation created by the Sarbanes/Oxley Act of 2002 to oversee the audits of US-listed public companies) into the Securities and Exchange Commission (SEC).
Why it matters: The committee’s legislation (known as “the Financial Services Committee Print, providing for reconciliation pursuant to House Concurrent Resolution 14”) will now be folded into the broader reconciliation bill, which will be compiled by the House Budget Committee. The HFSC proposed cuts will be much smaller than the hundreds of billions in savings/possible revenue increases expected to be delivered in the coming weeks by other House panels, like the Ways and Means (think tax policy changes) and Energy and Commerce Committees (think Medicaid program reductions).
What’s next: Both the Ways and Means and Energy and Commerce panels are expected to meet as soon as mid-May to complete their significant portions of the House reconciliation exercise. The Ways and Means Committee actions will represent the unveiling of that panel’s proposed tax policy changes to extend major portions of the 2017 Tax Cuts and Jobs Act. The emerging Ways and Means “Committee Print” will also purportedly include “revenue raisers” that could impact the business operations of MBA member real estate finance-related firms and markets going forward (if enacted).
• The various Senate standing committees – and the full Senate – will complete its parallel portion of this reconciliation exercise (likely this summer) after the full House clears the package to be assembled by its Budget Committee (possibly by Memorial Day). MBA staff (with guidance from the association’s Board-appointed Tax Task Force) will continue to engage with lawmakers and their key staff to advocate for our industry’s tax priorities.
For more information, contact Bill Killmer at (202) 557-2736.
D.C. Circuit Court Bars Mass Layoffs at CFPB
Last Monday, the U.S. Circuit Court of Appeals for the District of Columbia upheld a temporary injunction issued by Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia, enjoining the CFPB from firing roughly 1,400 of their employees.
• This decision restores the full original ban on layoffs, preventing further reductions in force (RIF). Previously, the Circuit Court allowed the CFPB to conduct layoffs following a “particularized assessment.”
Go deeper: Previously (on April 11), a three-judge panel for the D.C. Circuit gave the CFPB the freedom to terminate employees if, after a “particularized assessment,” the agency determined that the employees to be terminated would be “unnecessary to the performance of [the agency’s] statutory duties.” Then, the CFPB issued a RIF, effectively terminating 90 percent of agency employees. After plaintiffs filed an emergency motion to show cause as to how the RIF did not violate the district court’s preliminary injunction, the CFPB sought relief from the D.C. Circuit in the form of clarification of the particularized assessment requirement or enforcement of its order staying the applicable paragraph of the preliminary injunction.
• The scope of layoffs was larger than expected based on recent discussions held by MBA staff with Administration officials. MBA believes a downsized CFPB should maintain sufficient resource levels to conduct core statutory functions, in particular enough rule-writing personnel/capabilities to revise and reform certain Director Chopra- and Cordray-era rules, as well as sustaining baseline levels of supervision, enforcement, and market monitoring functions required by statute.
What’s next: The D.C. Circuit has placed the CFPB’s appeal on an expedited track and will hear oral arguments on May 16, 2025. After hearing oral arguments and reviewing the parties’ briefings, the D.C. Circuit will enter a ruling on the merits of the parties’ arguments as to the validity of Judge Jackson’s preliminary injunction. MBA will continue to monitor news from the CFPB and provide updates to members.
For more information, please contact Justin Wiseman at (202) 557- 2854, Alisha Sears at (202) 557-2390 or Megan Booth at (202) 557-2740.
CFPB Says It Will Not Enforce Section 1071 Rule
Last Wednesday, the CFPB said in court filings that it would not enforce the 1071 small business reporting rule. Instead, the Bureau said it will focus on “pressing threats to consumers, particularly servicemen and veterans.” This follows reports from several weeks ago that CFPB would reopen the Rule for changes.
Why it matters: Since it was issued in 2023, MBA has urged the CFPB to narrow the rule’s scope, including an overall exemption for loans to finance income-producing investment properties in the final rule, but the Bureau failed to do so. It is well-recognized that investment property lending is a category of lending distinct from small business lending.
What’s next: MBA will continue to advocate for the repeal, or narrowing of the scope, of the required reporting regime, either legislatively or regulatorily.
For more information, please contact Megan Booth at (202) 557-2740.
HUD Restores Repairs for Healthcare Refinances
In a significant win for MBA members, the Department of Housing and Urban Development (HUD) reinstated the policy that allows both critical and non-critical repairs for 223/223f refinances.
• Last fall, HUD stopped the long-standing practice of allowing non-critical repairs to be included in refinances, and MBA has advocated ever since, both with the Biden administration and Trump administration, for the agency to reinstate this policy.
Why it matters: Non-critical repairs are not unnecessary repairs, and skilled nursing facilities (SNFs) provide valuable care for our nation’s seniors and those with disabilities.
What’s next: MBA will continue to work with HUD to ensure its healthcare programs are running appropriately and meet the needs of borrowers.
For more information, please contact Megan Booth at (202) 557-2740.
HUD Rescinds Subdivision for Rent Notice
Last Thursday, HUD rescinded its Administrative Memo on Subdivisions for Rent from 2021. While HUD works on a new notice, eligibility of subdivisions for rent type projects will be determined on a case-by-case basis pursuant to departmental requirements.
Why it matters: The demand for rental homes continues to grow. Successful developments containing single-family homes, as well as townhomes and duplexes, are under development nationwide. However, HUD has been unwilling to finance them.
What’s next: MBA and its members have been urging HUD to expand eligibility for these projects and is hopeful this is the first step in that direction.
For more information, please contact Megan Booth at (202) 557-2740.
Q1 GDP Commentary from MBA’s Mike Fratantoni
On Wednesday, the U.S. Commerce Department announced that real gross domestic product (GDP) decreased at an annual rate of 0.3 percent in the first quarter of 2025.
What they are saying: “Economic growth went negative in the first quarter as businesses rushed to import goods before tariffs went into effect. In addition to the pullback in activity, the inflation metrics increased relative to the prior quarter, so both growth and inflation were headed in the wrong direction,” said MBA’s SVP and Chief Economist Mike Fratantoni. “The data showed a slower 1.8% growth rate for consumer spending, with a reduction in spending on motor vehicles and parts compared to last quarter. Households were getting more cautious with respect to larger purchases even in advance of the tariff announcements.”
Go deeper: To read MBA’s full analysis, click here.
For more information, please contact Mike Fratantoni at (202) 557-2935.
Get Involved in MAA Action Week: May 12-16
MBA’s annual Mortgage Action Alliance (MAA) Action Week is fast approaching, taking place from May 12-16! Sign up today 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 provides you with all necessary resources you need to make your campaign a success, including a communications plan, sample emails, social posts, and graphics in advance – making it an easy “copy and paste” exercise for you and your designated colleagues.
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.
ICYMI: Yesterday, MBA’s Legislative and Political Affairs team hosted a MAA Quarterly Webinar: Beyond the First 100 Days. The free virtual event provided around 1,050 registrants with a breakdown on the latest legislative and regulatory updates, what to expect next from Capitol Hill, and priorities MBA is actively tracking on behalf of the industry. Here’s a link to the recording.
What’s next: MBA’s federal, bipartisan political action committee, MORPAC, will also be hosting its annual fundraising campaign, June 23-27. MORPAC provides access to build and strengthen relationships with pro-industry candidates and advance MBA’s legislative agenda. If you’re interested in learning more about our industry’s PAC, email morpac@mba.org.
For more information, please contact Jamey Lynch, AMP at (202) 557-2818 or Margie Ehrhardt at (202) 557-2708.
MBA’s Commercial/Multifamily Finance Servicing & Technology Conference – May 18-21
MBA’s Commercial/Multifamily Finance Servicing and Technology Conference (CMST), taking place May 18-21 in Hollywood, Florida, is the most comprehensive and interactive event for servicers and technology professionals to gather and discuss relevant industry challenges and opportunities.
• View the schedule here.
Why it matters: CMST is the opportunity to connect with your peers, meet with existing and potential business partners, hear from experts, and learn meaningful technology solutions that drive real impact. Attendees are also eligible to earn CPE credits and CCMS education points.
What’s next: There is still opportunity to register for the conference at www.mba.org/conferences.
For more information, please contact Megan Booth at (202) 557-2740.
[VIDEO]: mPower Moments: On Trusting Your Instincts with MBA’s Tamara King
mPower Founder Marcia M. Davies sits down with Tamara King, MBA’s Vice President of Strategic Industry Engagement, Residential Policy, for an in-depth conversation on her career journey and her dedication to working with MBA’s membership on critical policy issues.
Go deeper: King also discussed the pivotal moments in her career and the challenges she has faced balancing familial responsibilities as well as career advancement. Additionally, King shared insightful advice on how the next generation can thrive and succeed and how “being your own advocate” can spur new opportunities.
For more information, please contact Marcia Davies at (202) 557-2707.
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:
• Basics of Commercial Loan Closing and Loan Documentation – May 1
• CMF Risk Management Series: Pre-Closing Risk Reduction Tactics – May 6
• 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
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.
