CREF Policy Update: Federal Government Shutdown Persists as Stalemate Continues; New York Governor Vetoes MBA-Opposed Commercial Rent Pricing Bill
Federal Government Shutdown Persists as Stalemate Continues
• Read MBA’s member guide that outlines the potential impacts to single-family and multifamily government lending programs.
Why it matters: Hundreds of thousands of federal employees missed a paycheck last week. Furthermore, the shutdown has necessitated furloughs and has been used to justify Reductions in Force (RIFs) of many federal employees, as well as significant curtailment of certain operations at key agencies such as HUD, Treasury, the VA, and USDA.
• National Flood Insurance Program (NFIP) authorities remain expired, with the White House and GOP congressional leaders still declining to make a deal to reauthorize the program prior to passage of a “clean” Continuing Resolution (CR). To avoid long-term disruptions to the housing and flood insurance markets, MBA continues to advocate for an immediate restoration of the program’s authority.
Go deeper: The federal government has been shut down since Congress failed to come to an agreement on FY 2026 funding before a Sept. 30 11:59 p.m. ET deadline.
• On Sept. 19, House Republicans passed a short-term CR to extend FY 2024-2025 funding through Nov. 21, 2025. In the Senate, ongoing attempts to advance either the House bill or a Democratic alternative have failed, with Democrats seeking to include additional health care priorities.
What’s next: MBA remains in contact with lawmakers and regulators and encourages members to share any real-time operational impacts. The longer this shutdown lasts – particularly with extended federal agency furloughs and missed paychecks – the more likely it will lead to significant disruption for the industry and its customers and end users. MBA continues to monitor all funding votes as the posturing continues.
For more information, please contact Bill Killmer at (202) 557-2736 or Jamie Woodwell at (202) 557-2936.
In Significant Advocacy Victory, New York Governor Vetoes MBA-Opposed Commercial Rent Pricing Bill
Legislation (S.1163/A.174) in New York opposed by MBA that would prohibit mortgagees from penalizing or defaulting mortgagors for not charging a high enough rent was vetoed by Governor Kathy Hochul earlier this month. In July, MBA led a coalition, including the New York Mortgage Bankers Association and local industry associations, in sending a letter to legislative leaders and the Governor opposing the bill and urging a veto.
• While well intentioned, the bill was overly broad and would have introduced significant legal uncertainty, undermined the enforceability of commercial loan contracts, and threatened the availability of credit for income-producing real estate across New York State.
Why it matters: The letter noted several shortcomings of the bill’s language, such as:
• It failed to focus as intended by the sponsor on commercial storefronts and small businesses;
• It conflicted with federal bank regulatory requirements;
• It would have reduced credit availability and increased borrowing costs statewide; and
• Its retroactive application would have created unconstitutional risk.
What’s next: MBA thanks the New York MBA for helping lead the industry’s opposition in achieving this significant advocacy victory. MBA will continue to collaborate with its independent state association partners to represent the interests of CREF members in state capitals.
For more information, please contact William Kooper (202) 557-2870.
Senate Banking Subcommittee Holds Hearing on Housing Innovation
Last Tuesday, the Senate Banking Committee’s Subcommittee on Housing, Transportation, and Community Development held a hearing on housing innovation. The discussion served as a platform to maintain momentum for the ongoing consideration of the Renewing Opportunity in the American Dream (ROAD) to Housing Act.
• The hearing examined how to expand affordable housing, streamline regulations, improve resilience, and foster public-private partnerships as a means to address the rising cost of housing, including insurance challenges.
• Witnesses from the Bipartisan Policy Center, the Center for Insurance and Research at the University of Alabama, and Construction Revolution provided testimony in support of the legislative framework of the ROAD to Housing Act.
• A summary of the hearing can be found here.
Why it matters: Earlier this month, the full Senate voted to include the ROAD to Housing Act within a “manager’s amendment” to its Fiscal Year 2026 National Defense Authorization Act (NDAA). Last month, the full House failed to include any housing-related text within its competing version of an NDAA package. House and Senate negotiators will ultimately determine the scope and content of provisions that will remain in a final NDAA conference report, which must pass both chambers of Congress.
Go deeper: The hearing highlighted legislative fixes to foster innovative construction and resilient buildings, as well as the need for certain deregulatory efforts. Senator Jack Reed (D-RI) highlighted the difficulty of assembling complex financing for affordable housing, arguing that relying on numerous funding sources takes developers more time than construction itself. He also discussed bipartisan legislation designed to raise FHA multifamily loan limits and to promote the financing and use of accessory dwelling units (ADUs).
Senator David McCormick (R-PA) discussed the potential impact of a renewed round of Opportunity Zones on our nation’s housing supply. Other topics raised included insurance availability/affordability and the need for greater utilization of manufactured housing and modular homes.
What’s next: As the NDAA conferencing process moves forward, MBA will continue to actively engage with lawmakers and key staff in both chambers and on both sides of the aisle about important priorities for our industry still in play within ongoing ROAD to Housing Act discussions.
For more information, please contact George Rogers at (202) 557-2797 and Bill Killmer at (202) 557-2736.
MBA Submits Comment Letter Addressing Regulatory Burdens Affecting Insured Depositories
MBA last week submitted a comment letter to the Federal Banking Agencies pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA). EGRPRA requires the Agencies to review their regulations every ten years to identify outdated, unnecessary, and overly burdensome regulations.
Why it matters: MBA’s comment letter focused on the Community Reinvestment Act (CRA), Bank Capital, and Banking Operations.
• CREF-specific comments pertained to CRA treatment of workforce housing, capital treatment of certain types of loans, different forms of credit extension, and banks’ relationships with their primary federal regulator.
• A section of the comment letter was devoted to addressing the Agencies’ failed 2023 Basel III Endgame proposal in advance of the upcoming and anticipated re-proposal.
Why it matters: EGRPRA offers industry participants a unique opportunity to highlight broad regulatory concerns affecting insured depository institutions. MBA heard concerns from a variety of members covering multiple instances of regulatory burden. Member feedback is integral to policy-centric advocacy efforts impacting the banking industry.
• MBA thanks its members who participated throughout this process.
What’s next: MBA remains supportive of the Trump administration’s efforts to reduce regulatory burdens affecting insured depositories and looks forward to collaborating with them on future policy issues affecting the banking industry, including the Basel III Endgame re-proposal.
For more information, please contact John Lammle at (202) 557-2789.
MBA, Trades Urge the Administration to Maintain Treasury’s CDFI Fund
Last Monday, MBA joined a group of trade associations in a letter sent to Treasury Secretary Scott Bessent and OMB Director Russ Vought that urged the Trump administration to reverse the recent firing of all employees of the Treasury’s Community Development Financial Institutions (CDFI) Fund, which would effectively eliminate the program.
Why it matters: As part of the Administration’s recent reduction-in-force actions during the ongoing government shutdown, all the employees of the CDFI Fund were terminated, thus abolishing the Fund.
Go deeper: The joint trades letter was intended to remind the Administration of the important steps that have been taken over the years since its creation to “strengthen the Fund’s alignment with statutory intent and the Administration’s priorities, ensuring that it continues to operate efficiently, responsibly, and in a manner that delivers measurable results for communities across America.”
• The letter urged the Administration to consider all the progress that has been made and in light of that, continue to support the Fund in its important mission by ensuring it maintains appropriate staff and funding levels.
What’s next: MBA, together with the other signers, represent members ranging from large national institutions to community banks and nonbank lenders. The groups will continue to work with the Administration and Congress in an attempt to preserve the CDFI Fund’s effectiveness and ensure continuity for programs that directly benefit low- and moderate-income households, small businesses, and local economies nationwide. For example, MBA encouraged House and Senate Republicans to sign onto a letter that urged Treasury and OMB to reverse their recent CDFI-related funding actions.
For more information, please contact Fran Mordi at (202) 577-2860 or John Lammle at (202) 557-2789.
Christine Chandler Sworn in as 2026 MBA Chair; Owen Lee Named Chair-Elect, John Hedlund Named Vice Chair
Christine Chandler, Executive Vice President, Chief Operating Officer, M&T Realty Capital Corporation (RCC), was sworn in last Sunday as 2026 MBA Chair during the 2025 Annual Convention and Expo in Las Vegas.
• Read MBA Chair Chandler’s speech.
• Owen Lee, Chief Executive Officer at Success Mortgage Partners, Inc. (SMP), and John Hedlund, Vice Chairman of ICE Mortgage Technology, were also sworn in, as Chair-Elect and Vice Chair, respectively.
What they’re saying: “Throughout my career, I have witnessed the significant impact of MBA’s advocacy, research, and education in strengthening the real estate finance industry and the communities it serves,” said Chandler. “It is a distinct honor to represent our industry as MBA’s 2026 Chair. I look forward to working with Chair-Elect Owen Lee, Vice Chair John Hedlund, and our member leaders to cultivate the next generation of industry professionals, advance policies that expand housing affordability and accessibility, and further increase member engagement in MBA’s advocacy efforts.”
Go deeper: Chandler has been with M&T since 1991 and has more than 30 years of experience in commercial real estate finance. Since 2018, she has been Chief Operating Officer and has overseen credit, asset management, compliance, technology and transformation.
• Lee co-founded SMP, located in Plymouth, Mich., with his father, Vincent, in 2002 and serves as CEO. Under his leadership, SMP has closed billions of dollars of mortgage loans yearly since 2016, is licensed in 42 states, and has more than 600 employees. Lee is also Managing Member of Title Partners, a full-service title insurance and escrow services agency.
• Hedlund, a prominent MBA voice and industry volunteer over the years, has served as a board member for several organizations, including as a member of MBA’s Board of Directors, Board Chairman of MISMO, Chairman of MBA’s Residential Board of Governors (RESBOG), Board Member and past Chairman of the California Mortgage Bankers Association, and Advisory Board Member for Automated Mortgage Systems, Inc. and FundingShield.
COMBOG Kicks Off Fiscal Year 2026
Last Tuesday, MBA’s Commercial Real Estate/Multifamily Board of Governors (COMBOG) kicked off Fiscal Year 2026 with an engaging and forward-looking meeting at MBA’s Annual Convention and Expo in Las Vegas.
• COMBOG provides MBA guidance on its policy, advocacy, and member engagement activities related to the commercial real estate finance industry. Composed of leaders from across capital sources and roles, the group meets throughout the year to review MBA priorities and discuss emerging trends. COMBOG’s work helps ensure that MBA programs and priorities reflect the opportunities and challenges MBA member firms face in today’s and tomorrow’s commercial real estate finance market.
• The meeting included a review of important policy issues facing each capital source, such as capital rules for banks and insurance companies, a regulator review of the Community Reinvestment Act, GSE release, extension of the Terrorism Risk Insurance Act, and structured finance topics such as 17g-5 and 17g-7. There was also discussion of how different capital sources are navigating changing market conditions.
• The conversation captured the energy, expertise, and collaboration that define MBA’s commercial and multifamily community as our members look ahead to another transformative year.
Read MBA’s press release announcing its COMBOG (and RESBOG) roster.
What’s next: Join and attend MBA council and committee meetings to stay informed and be part of the conversations shaping COMBOG’s priorities for Fiscal Year 2026.
For more information, please contact Kelli Burke at (202) 557-2742.
Upcoming MBA CREF Councils and Committee Meetings
MBA’s CREF Councils and Committees are a key way to connect to everything MBA has to offer around policy, advocacy, market intelligence and research, education, and networking. Councils and Committees are built around specific capital sources and serve as an opportunity for you to join other commercial real estate finance professionals to hear from experts, discuss opportunities and challenges, and connect with peers.
Upcoming virtual meetings include:
• Structured Finance Council: Nov. 5
• FHA Council: Nov. 11
• Private Credit Finance Council: Nov. 17 – Meet in-person @ the Summit
• Life Company Council: Nov. 18
• Servicer Council: Nov. 20
For more information, click on the links above and/or contact Kelli Burke at (202) 557- 2742.
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, opportunities, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars – all complimentary to MBA members:
• Overview of Commercial/Multifamily Insurance Compliance – Nov. 5
• Mastering Commercial/Multifamily Lender-Placed Insurance – Nov. 12
• Rethink Everything You Know About Networking: Part II – Nov. 13
• Exploring Data Centers – Nov. 18
• AI Speed Learning for the Mortgage Professional – Nov. 20
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.
