CREF Policy Update: MBA Shares Views on GSE Release/Re-privatization at Multifamily-Focused Meeting at Treasury
MBA Shares Views on GSE Release/Re-privatization at Multifamily-Focused Meeting at Treasury
Last week, Jamie Woodwell, MBA’s SVP of Commercial/Multifamily and Strategic Industry Engagement, joined MBA members and other industry leaders in a multifamily-focused roundtable meeting at the Treasury Department on the futures of Fannie Mae and Freddie Mac (the GSEs).
• The meeting was the last in a series of similar roundtables held by Treasury and came on the heels of another hosted recently by the Federal Housing Finance Agency (FHFA). FHFA will hold a roundtable focused on multifamily elements of the GSEs next week.
Go deeper: Similar to the meeting at Treasury, last week’s meeting was largely a listening session for senior Treasury staff working on this issue – but with a heavy focus on the GSEs’ multifamily business.
• Dialogue focused on questions around the role the GSEs play in the multifamily space, areas in which the GSEs promote affordability, the impacts of multifamily lending caps, practices that encourage new development and housing supply, ways to improve liquidity in multifamily debt markets, transparency and standardization, risk management, capital requirements, competition, and more.
• MBA reinforced its core principles developed by its Board-level GSE Task Force (read it here).
What’s next: As plans evolve, MBA will continue its ongoing engagement efforts with the Administration and Congress to ensure critical regulatory and market structure/market conduct issues are addressed, including:
• Preserving competition between at least two GSEs;
• Preserving a “bright line” to ensure the GSEs do not compete with the primary market;
• The need for a strong regulator and adequate capital;
• Establishing a well-defined, paid-for federal backstop against the GSEs’ MBS, that could be tapped only after all private capital is exhausted; and,
• Respect for the important roles that the GSEs and other capital sources play in the multifamily mortgage market.
For more information, please contact Jamie Woodwell at (202) 557-2936 and Megan Booth at 202-557-2740.
Federal Reserve Cuts Rates by 25 Basis Points
In response to current economic conditions, including the weakening labor market, the Federal Reserve cut the federal funds rate to a target range of 4.00-4.25% last week, the first rate cut since December 2024.
• Why it matters: The Committee emphasized 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 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.”
• What they are saying: “The projections show that the median FOMC member anticipates two additional cuts in 2025 and one more in 2026, with the expectation that the job market will remain soft while inflation, while rising, won’t move too far before returning to the Fed’s 2% target,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “While the decision was not unanimous, with one dissent from the newest governor, Stephen Miran, the strong vote for the 25-basis-point cut suggests that members, while acknowledging that downside risks to the job market have increased, are not panicking about the state of the economy.”
• Read more of Fratantoni’s commentary here.
For more information, please contact Mike Fratantoni at (202) 557-2935.
MBA Monitoring Developments Ahead of Possible Oct. 1 Government Shutdown
Why it matters:
• National Flood Insurance Program (NFIP) authorities are scheduled to expire on Oct. 1. A lapse in the NFIP would be disruptive, especially at closing time for loans relying on the program. MBA will continue its work with lawmakers and agency officials in calling for an extension of NFIP’s authority – including a possible separate/targeted authorization measure – to avoid disruptions to the flood insurance market.
• Rest assured, MBA also remains directly engaged with lawmakers in both chambers of Congress and with affected regulators. Starting on Oct. 1, a shutdown would necessitate a furlough of certain federal employees and significant curtailment of certain operations requiring agency staff intervention or action at the Departments of Housing and Urban Development (HUD), Veterans Affairs, and Agriculture.
Go deeper: Congress last passed a CR on March 14, 2025, that extended FY 2024 funding levels until Sept. 30. Lawmakers initially failed to pass a full FY 2025 budget before the start of the new FY on Oct. 1, 2024.
What’s next: Given that short-term shutdown threats have become somewhat routine, MBA anticipates that most agencies have begun their plans for maintaining essential functions.
• Once confirmed, MBA will provide a member guide that outlines the potential impacts to single-family and multifamily government lending programs.
A shutdown lasting a few days would only slightly inconvenience single-family and multifamily mortgage markets. A longer delay would have much more 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 and Jamie Woodwell at (202) 557-2936.
REGISTER: CRE Insurance Conclave 2025
The MBA CRE Insurance Conclave 2025, will take place on Oct. 5-7, in Minneapolis, Minnesota.
• This event is the premier gathering for property-related insurance and risk professionals in the commercial real estate finance sector. Designed for executives and specialists from a wide range of lending and servicing institutions, this event offers a deep dive into the latest insurance market trends through expert-led panel discussions and collaborative sessions.
Why it matters: In an era of increasing risk complexity and regulatory shifts, this conclave equips industry leaders with the knowledge and network to make informed, strategic decisions that impact the future of CRE finance.
What’s next: Register now to secure your spot. Registration closes on Sept. 26.
For more information, please contact Jacky Salazar at (202) 557-2746.
House Financial Services Committee Discusses TRIA Reauthorization
Last Wednesday, the House Financial Services Committee’s Housing and Insurance Subcommittee held a hearing titled, “The Reauthorization of the Terrorism Risk Insurance Act of 2002.”
• The hearing underscored the urgent and bipartisan need to reauthorize the Terrorism Risk Insurance Act (TRIA) well before its 2027 expiration. Insurance industry leaders (and other experts) and a group of bipartisan lawmakers all generally agreed during the hearing that a long-term, clean reauthorization is essential to preserve macroeconomic stability and minimize the disruptions that would result from a TRIA program lapse.
• Find a summary of the hearing here, as well as the letter MBA submitted for the hearing record, along with joining a broad coalition letter supporting enactment of a clean, long-term TRIA extension and re-authorization (well prior to the program’s expiration date).
Go deeper: MBA serves on the steering committee of the Coalition to Insure Against Terrorism (CIAT), a broad group of industry partners formed prior to TRIA’s initial enactment in 2002.
Why it matters: For the commercial/multifamily sector, TRIA is foundational — it ensures terrorism risk coverage remains available and affordable, enabling lenders and investors to finance properties where families live and businesses operate. Without TRIA’s federal backstop, terrorism exclusions would reappear in policies, disrupting capital flows and threatening economic development
What’s next: MBA will continue to work with lawmakers (in both chambers of Congress on a bipartisan basis) as a working draft of TRIA extension legislation is introduced and proceeds towards further consideration.
For more information, please contact Rachel Kelley at (202) 557-2816, Madisyn Rhone at (202) 557-2741, or Megan Booth at (202) 557-2740.
Senate Allows for En Bloc Nominee Confirmations by a Majority Vote
Senate Majority Republicans recently have gone through the procedural steps to begin confirming groups of Executive Branch nominees by a majority vote.
• Under this new precedent, an unlimited number of a President’s nominees (if they are below the head of agency level on their pay schedule) can be considered en bloc (at the same time) by a majority vote of the Senate. Confirming larger numbers of non-controversial nominees at the same time in the Senate has been the practice for a very long time, but doing so has required unanimous consent.
Go deeper: Changing the precedents regarding nominees requires a majority vote (51), while changing the standing rules of the Senate requires a two-thirds vote (67), which is why some commentators refer to this as exercising a “nuclear option.” During both Democratic and Republican presidencies and Senate majorities, the last 20 years of data shows between 41-94% of nominees have been confirmed by unanimous consent.
• Senate Republicans have emphasized that thus far during President Trump’s second administration, Senate Democrats have objected to all nominees moving by unanimous consent. Since 2013, both Democratic and Republican Senate majorities have exercised various forms of “nuclear options” to modify precedents and speed up the confirmation of nominees.
Why it matters: The new Senate precedent allowing for the confirmation of larger groups of nominees (at the same time) means civilian political (i.e., non-career) appointees across government agencies – like those at key agencies for our industry like HUD, Treasury, and other independent agencies – can be more quickly confirmed and placed into their policy-making roles.
• The precedent change will apply to the rest of President Trump nominees below the head of agency level, and it will be available for future presidential administrations and Senate majorities to use. The change does not impact federal judicial nominations.
For more information, please contact George Rogers at (202) 557-2797 or Ethan Saxon at (202) 557-2913.
MBA Responds to Senate RFI on Flood Insurance
Last week, MBA responded to a request for information (RFI) from Senators Cassidy (R-LA) and Booker (D-NJ) regarding the National Flood Insurance Program (NFIP).
• The request asked for suggestions for improvements to the program. MBA’s response to the RFI stressed the need for a long-term reauthorization of the NFIP to avoid market volatility. MBA also urged for reform to the mandatory purchase provisions for commercial properties and increases to the coverage limits for same.
Why it matters: Today, only 5% of NFIP policies are non-residential, and commercial properties nearly always require additional coverage, as the NFIP coverage is limited to $500,000.
What’s next: Absent specific congressional action, the NFIP program authorities will expire on October 1st and could lapse if there is a government shutdown. As with prior Congresses, we expect further discussions in both chambers of Congress about ways to reform the program.
For more information, please contact George Rogers at (202) 557-2797 or Megan Booth at (202) 557-2740.
HUD Narrows Definition of Substantial Rehabilitation for Healthcare Properties
Last Tuesday, HUD announced in a Mortgagee Letter (ML) that it will narrow the definition of “substantial rehabilitation” for its FHA 232 program.
• The ML simplifies the definition and increases the threshold levels, which should result in fewer properties falling into this category, allowing them to avoid the costs and requirements of substantial rehabilitation loans.
Why it matters: Section 232 loans provide mortgage insurance for residential care facilities such as nursing homes and assisted living facilities. This change will increase the threshold of repair and construction cost allowed in a 232/223(f) loan before triggering a loan designation of substantial rehabilitation (which requires a different loan product).
What’s next: MBA will continue to work with HUD and the Federal Housing Administration (FHA) to ease regulatory burdens and costs of FHA mortgage insurance.
For more information, please contact Megan Booth at (202) 557-2740.
Recap of MAA’s Sept. 10 Quarterly Webinar: Sustained Advocacy Drives Results!
MBA’s Legislative and Political Affairs Team hosted the Mortgage Action Alliance’s (MAA) Quarterly Webinar last week, which covered expectations for the remaining congressional agenda in 2025 and the likelihood of a government shutdown.
• The team highlighted MAA’s Advocacy in August campaign, recent legislative achievements, MBA’s key policy priorities, a preview of the top races to watch in the 2026 midterm elections, and more. Click here to listen to the full recording.
Why it matters: With the 2026 midtern elections looming, and in a highly unusual period of special elections and redistricting battles, it is important to stay engaged in advancing our industry’s interests.
• MAA’s Quarterly Webinar Series provides valuable insights into the legislative process and evolving policy landscape, allowing MBA/MAA members to effectively engage in advocacy year-round.
What’s next: Save the date for MAA’s next Quarterly Webinar, 365 days prior to the 2026 elections, on Tuesday, November 4, 2025. Additionally, register now to attend MBA’s National Advocacy Conference (NAC), including a separate, tailored CREF track for our commercial/multifamily members, taking place April 14-15, 2026, at The Westin DC Downtown.
• Join hundreds of industry advocates to meet with and educate policymakers on issues impacting your businesses and customers. It’s never too early to make your plans!
• Register by March 2, 2026, to receive the early bird rate. MBA offers special rates for members of MBA’s young professionals’ network (mPact), the Certified Mortgage Banker (CMB) Society, and group rates for MBA member companies as well.
For more information, please contact maa@mba.org or Margie Ehrhardt at (202) 557-2708.
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 Committee: Oct. 14
• 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, 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
• Overview of Commercial/Multifamily Insurance Compliance – Nov. 5
• Mastering Commercial/Multifamily Lender-Placed Insurance – Nov. 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.
