CREF Policy Update: Federal Government Shuts Down Following Congress Stalemate on FY 2026 Appropriations; Read MBA’s Shutdown Member Guide
Federal Government Shuts Down Following Congress Stalemate on FY 2026 Appropriations; Read MBA’s Shutdown Member Guide
Last Wednesday, the federal government shut down after Congress failed to come to an agreement on Fiscal Year (FY) 2026 funding before Tuesday’s 11:59 p.m. ET deadline.
• Read MBA’s member guide that outlines the potential impacts to single-family and multifamily government lending programs.
Why it matters: Details on impacts remain fluid, but the shutdown has necessitated the furloughs of certain federal employees as well as significant curtailment of certain operations requiring agency staff intervention or action at the Department of Housing and Urban Development, Veterans Affairs, the Department of Agriculture, and elsewhere.
• National Flood Insurance Program (NFIP) authorities have also expired, a disruptive development that impacts real estate transactions in flood-prone areas where insurance is required. MBA is advocating for an immediate extension of NFIP’s authority–including a separate/targeted authorization measure – to avoid long-term disruptions to the housing and flood insurance markets. Read the recent trade groups/coalition letters to congressional leadership here and here. Congressional hearings on flood insurance (and other housing-related topics) are being planned for both the Senate and House in the coming weeks.
Go deeper: On Sept. 19, Republicans in the House of Representatives passed a short-term Continuing Resolution (CR) that extends Fiscal Year (FY) 2024-2025 funding levels through Nov. 21, 2025. However, in the Senate, where 60 votes are needed, several attempts to advance the House-passed measure (and a competing Democratic alternative) have all failed in recent days. Democratic leaders continue to insist that certain health-care related priorities must be added to any government funding package. Further funding-related votes are expected later today–and throughout the weekend–as negotiations continue.
What’s next: MBA is engaged with lawmakers in both chambers of Congress–and affected regulators–and encourages members to contact us directly with any real-time impacts your firms are experiencing. A shutdown lasting a few days slightly inconveniences single-family and multifamily mortgage markets. A longer delay–especially if it leads to widespread layoffs at federal agencies important to the industry–will have 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 or Jamie Woodwell at (202) 557-2936.
FHA Lenders Meet with HUD Officials
Last Tuesday, more than 70 MAP (FHA Multifamily) and LEAN (FHA healthcare) lenders met with HUD officials to talk about operations of its programs and ways to improve efficiencies. Hot topics included upcoming mortgagee letters, expected new Build-to-Rent guidance, delays in loan closings, and operations during the government shutdown. Lenders were quick to thank HUD for the recent MIP reduction, and the improvements in the program over the last year.
Why it matters: The FHA Roundtable provides lenders and HUD staff the opportunity to dialogue about issues and concerns and discuss suggestions to increase efficiencies in the programs for HUD and lenders alike.
What’s next: MBA’s FHA Committee meets monthly to discuss issues surround the HUD programs and will hold another FHA Roundtable in April in Washington, D.C.
For more information, please contact Megan Booth at (202) 557-2740.
MBA Provides FHFA Regular Quarterly Update on Multifamily Market Conditions for Lending Caps
Last Wednesday, MBA’s Chief Economist Mike Fratantoni, Ph.D., and AVP of Commercial Real Estate Research Judie Ricks, Ph.D., provided their regular quarterly update on multifamily market conditions to the Federal Housing Finance Agency (FHFA).
• FHFA uses MBA’s perspectives and forecast as a key input in their annual establishment and quarterly review of the multifamily lending caps for Fannie Mae and Freddie Mac.
• Fratantoni and Ricks provided the latest read on overall economic conditions, consumer strength, multifamily fundamentals and lending, loan performance, and MBA’s forecast for lending volumes.
Go deeper: Each year, FHFA establishes a cap for the GSEs’ multifamily lending volumes, including an overall dollar limit and requirements that certain shares of activity meet requirements around affordability.
• The caps for 2025 limited each of the GSEs to $73 billion of lending, with certain exceptions for deals with specific affordability requirements. The GSEs are on track to get closer to their caps this year than they have in previous years. FHFA maintains the ability to increase the caps during the year should market conditions warrant.
Looking ahead: FHFA is in the process of developing caps for calendar year 2026 and typically releases the cap number and framework prior to Thanksgiving. MBA’s forecast of multifamily originations is a key input in the establishment of the caps, with FHFA usually establishing the collective cap at a level equal to roughly 40 percent of MBA’s anticipated multifamily lending.
• MBA’s latest forecast projects $419 billion of multifamily lending in 2026, 40% of which would be $168 billion or roughly $84 billion for each enterprise.
What’s next: MBA continues to emphasize the important roles that Fannie Mae and Freddie Mac – and other capital sources including banks, insurance companies, CMBS, private credit, and others – play in the multifamily market.
For more information on multifamily market conditions, please contact Mike Fratantoni at (202) 557-2935 or Judie Ricks at (202) 557-2745.
To learn more about the multifamily lending caps, please contact Jamie Woodwell at (202) 557-2936 or Megan Booth at 202-557-2740.
FHFA Publishes Proposed Housing Goals for 2026-2028
Last Wednesday, the Federal Housing Finance Agency (FHFA) published a proposed rule for Fannie Mae’s and Freddie Mac’s 2026-2028 Housing Goals.
• The proposal makes no changes to the 2025-2027 goals for multifamily and keeps the existing goals of 61% for low income, 14% for very low income, and 2% for small low-income multifamily properties.
• FHFA stated that it “believes that these relatively conservative benchmark levels are appropriate for the multifamily housing goals given market uncertainty and a desire to avoid unintended consequences that may result if the multifamily goals are set at unrealistic levels.”
Why it matters: These goals, in concert with the mission elements of the GSEs’ multifamily lending caps, govern the affordability mix of business that Fannie Mae and Freddie Mac pursue throughout the year.
What’s next: MBA will work with its members to develop a written response by the November deadline.
For more information, please contact Megan Booth at (202) 557-2740.
CFPB 1071 Small Business Loan Reporting Requirements Extended Compliance Dates Confirmed
Last Wednesday, the Consumer Financial Protection Bureau (CFPB) finalized its interim rule related to Regulation B, 1071 Small Business loan reporting.
This rule confirms its findings in the 2025 interim final rule and finalizes the compliance dates in that rule. The delayed compliance of reporting requirements of small business loans is now July 1, 2026, through Oct. 1, 2027, (with first filing deadlines of June 1, 2027, through June 1, 2028) depending on the small business loan origination volume of the lender.
Why it matters: The final rule comes after a series of court cases (some still ongoing) urging delays of the provision. Since the rule was issued in 2023, MBA has urged the CFPB to narrow its scope, including an overall exemption for loans to finance income-producing investment properties in the final rule.
• 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 call on the CFPB to simplify its small business reporting requirements.
For more information, please contact Megan Booth at (202) 557-2740.
SEC Concept Release Seeks Input on Publicly Registered RMBS and Aspects of Asset-Backed Securities
Last week, the Securities and Exchange Commission published a concept release seeking public comments on how to improve current SEC rules governing residential mortgage-backed securities (RMBS) disclosures and certain aspects of asset-backed securities (ABS). The concept release notes there have been no publicly registered RMBS offerings since 2013 and seeks feedback from the public on whether there are SEC regulatory impediments contributing to the absence of public RMBS offerings, including whether certain disclosure requirements should be revised and how certain sensitive information about mortgage loans underlying the RMBS may be shared with investors in light of privacy and confidentiality concerns.
Why it matters: While the focus of the concept release is primarily on the single-family RMBS market, some of the broader concepts are applicable to, and could have impacts on, the broader ABS market, including CMBS, CRE CLOs, and other instruments. The release may also present an opportunity to stress other industry priorities to the SEC.
What’s next: Public comments in response to this concept release are due by Dec. 1, 2025. MBA plans to submit comments and will engage with members, MISMO, and other trade associations to solicit feedback.
For more information, please contact John Lammle at (202) 557-2789 and Megan Booth at 202-557-2740.
Treasury Releases Guidance on Opportunity Zones in Rural Areas
Last Tuesday, the Treasury Department and the Internal Revenue Service (IRS) published guidance on the changes to Opportunity Zones included in H.R. 1, the One, Big, Beautiful Bill Act (OBBB). The guidance provides a definition for “rural area” to include any area other than a) a city or town with a population greater than 50,000, and b) any urbanized area contiguous and adjacent to a city or town with a population greater than 50,000. The law, signed by President Donald Trump in July, also updated the substantial improvement threshold for rural areas, from 100% to 50%.
Why it matters: Opportunity Zones bring with them significant tax benefits that can promote investment in designated markets.
What’s next: Treasury and the IRS will release further guidance in the coming months, to include the new designated areas.
For more information, please contact Megan Booth at (202) 557-2740.
[VIDEO]: mPower Moments: A Conversation with Marcia Davies
In this mPower Moments, Marcia M. Davies, MBA’s COO and Founder of mPower, sits down with Laura Hopkins, MBA’s new SVP of Meetings, Membership, and mPower, for a special conversation discussing Marcia’s retirement at the end of 2025 and her incomparable 40+ year career in the mortgage finance industry.
Go deeper: In this insightful conversation, Marcia shares with Laura why now is the perfect time to retire, her career highs and challenges, and reflects on the past 10 years of mPower, discussing how it has filled her cup. Marcia also shares her vision of mPower going forward as Laura ascends into the position of leading mPower.
What’s next: To watch more mPower Moments, click here.
For more information, please contact Marcia Davies at (202) 557-2707.
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:
• Bank Council: Oct. 9
• FHA Council: Oct. 14
• Private Credit Finance Council: Oct. 16
• Structured Finance Council: Nov. 5
• 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:
• Rethink Everything You Know About Networking – Oct. 6
• Exploring Data Centers – Oct. 23
• 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
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.
