CREF Policy Update: U.S. House Passes Bipartisan Housing Package
U.S. House Passes Bipartisan Housing Package
On Monday, the full U.S. House passed overwhelmingly (390-9) H.R. 6644, the Housing for the 21st Century Act. The housing package aims to tackle supply and affordability challenges, modernize local development, and improve government housing programs.
• Specifically, the package (see breakdown here) advances several MBA-backed reforms, including updating Federal Housing Administration (FHA) multifamily loan limits, streamlining federal housing program offerings, incrementally improving financing processes for Rural Housing Service loans, providing targeted support for construction and rehabilitation, and fostering stronger coordination among federal agencies and Congress.
• Monday’s vote was under “suspension of the rules,” a “fast-track” procedure for non-controversial bills to avoid lengthy debates and the offering of amendments. A two-thirds majority of those present and voting is needed for the bill to pass the House.
What they’re saying: In a press statement, MBA President and CEO Bob Broeksmit, CMB, said, “Housing affordability is a top concern for homeowners, renters, and communities across the country. Today’s overwhelming bipartisan vote signals meaningful legislative momentum to expand supply, improve affordability, and modernize housing policy.”
Go deeper: In advance of today’s vote, MBA sent its latest support letter to House leadership (read another from December) and joined two other trade letters here and here.
• The House package passed the full House Financial Services Committee (HFSC) on Dec. 17 by a vote of 53-1 and was introduced on Dec. 11 by House Financial Services Committee Chair French Hill (R-AR), Ranking Member Maxine Waters (D-CA), Housing and Insurance Subcommittee leaders Mike Flood (R-NE) and Emanual Cleaver (D-MO), and a bipartisan group of lawmakers as a counterpoint to the Senate’s ROAD to Housing Act proposal.
• The Senate bill is a bipartisan package of roughly 40 aggregated housing proposals that advanced out of the Senate Banking Committee in July 2025 and was adopted by voice vote prior to the full Senate’s passed version of the Fiscal Year (FY) 2026 National Defense Authorization Act (NDAA) in October 2025. A full Senate vote on the package could happen as soon as later this month.
What’s next: MBA will continue to work with House and Senate leaders and their staffs to help reconcile differences between the two housing packages, particularly regarding their sections on appraisals and Rural Housing Service program reforms, once the bills proceed further on parallel tracks in both chambers.
For more information, please contact Rachel Kelley at (202) 557-2816, Madisyn Rhone at (202) 557-2741, George Rogers at (202) 557-2797, and Jeremy Green at (202) 557-2849.
Shutdown Ends; House Passes Appropriations Package Including HUD Funding
Last Tuesday, the full U.S. House passed – and the President signed – a five-bill “minibus” Fiscal Year (FY) 2026 appropriations package – (as approved by the Senate) – that effectively ended the four-day, partial government shutdown.
• Importantly, the enacted package includes funding for the Department of Housing and Urban Development (HUD) and the Departments of Defense, Transportation, Health and Human Services, Treasury, and Labor through Sept. 30, 2026.
• The legislation closely resembles last month’s House-passed H.R. 7148, the FY 2026 Consolidated Appropriations Act, which originally included six separate funding measures. The final bill also includes a two-week continuing resolution (approved by the Senate on Friday) for the Department of Homeland Security through Feb. 13.
Go deeper: Importantly, the package also extends federal authority for the National Flood Insurance Program (NFIP) to the end of the current fiscal year (through September 30, 2026) – preventing a longer-term lapse.
Why it matters: In a letter last month, MBA indicated its support for H.R. 7148, the “T-HUD” appropriations “minibus” bill. H.R. 7148 includes funding levels for the Federal Housing Administration (FHA), Ginnie Mae, HUD rental assistance, housing counseling, and IT modernization that all align closely with prior FY25 levels. Appropriators crafting the package largely rejected the steep spending cuts and program eliminations first proposed last year by the Trump administration. This was especially true for the HUD budget where lawmakers provided a robust 9 percent spending increase overall (nearly double the President’s original HUD budget request).
Key MBA-supported provisions included in the package and now enacted through September 30, 2026, include:
• $56 million in funding for Ginnie Mae staffing and technology upgrades
• $345 million in funding for HUD’s Information Technology Fund (possibly including FHA single-family and multifamily IT modernization upgrades)
• $35 billion in commitment authority for the GI/SRI Fund (FHA multifamily and health care program).
What’s next: All federal agencies relevant to real estate finance are now funded through September 30, 2026, providing near-term certainty for housing and mortgage market participants. Attention will now turn to the FY 2027 appropriations process, which is expected to begin later this spring as the Trump administration releases its budget request and congressional committees begin hearings.
For more information, please contact Rachel Kelley at (202) 557-2816, Madisyn Rhone at (202) 557-2741, George Rogers at (202) 557-2797, and Jeremy Green at (202) 557-2849.
FHA Extends Compliance Date on Energy Requirements
Recently, FHA announced that it is extending the compliance deadline for builders to adopt the 2021 IECC requirements under the Energy Efficiency Standards for New Construction Final Rule for HUD- and USDA-financed housing, originally published in April 2024.
• FHA had already pushed the compliance deadline to May 28, 2026, and will now extend it again to Dec. 31, 2026, to allow additional time to review the Final Rule and consider stakeholder feedback.
Why this matters: MBA has consistently raised concerns that this policy could increase costs and create affordability challenges and has supported reversing the Final Rule.
What’s next: MBA will continue to engage with the Trump administration as it considers steps to address housing affordability.
For more information, please contact Megan Booth at (202) 557-2740.
Treasury Secretary Testifies in FSOC Role Before Key House/Senate Panels
Last Wednesday and Thursday, Treasury Secretary Scott Bessent testified in front of the House Financial Services and Senate Banking Committees, respectively, in his capacity as Chair of the Financial Stability Oversight Committee (FSOC). Ostensibly about the annual FSOC report required by law, both hearing appearances gave lawmakers from both parties a chance to proffer questions for Secretary Bessent on issues that directly affect credit availability, capital requirements, regulatory certainty, interest rates, the future of the housing GSEs, and the broader economic conditions shaping real estate finance.
• The House hearing can be watched at: https://www.youtube.com/live/yTMIc8HWQLM, and the Senate hearing at https://www.banking.senate.gov/hearings/the-financial-stability-oversight-councils-annual-report-to-congress.
• Written summaries of the House and Senate hearings can be found here and here.
Why it matters: Between a frequent set of fiery and confrontational moments, both hearings provided insights into the likely regulatory environment in which mortgage lenders and servicers (both multi- and single-family) will encounter in the near term.
Go deeper: During the House hearing, lawmakers emphasized regulatory tailoring as essential to restoring the role of community and regional banks in mortgage lending. Legislators argued that “one size fits all” rules have constrained smaller lenders’ ability to originate mortgages, support construction financing, and provide liquidity to local housing markets—a theme with clear impact across the residential and multifamily sectors.
• The Senate hearing ranged from political point scoring to robust discussions about housing affordability, interest rates, the 10-year Treasury spread, artificial intelligence (AI), and the current status of Community Development Financial Institutions (CDFI) funding
What’s next: The two hearings illustrated Bessent’s (ergo the Trump administration’s) interest in shaping the credit, regulatory, and economic landscape – including topics that directly impact the real estate finance ecosystem. The differing perspectives of legislators mean that enacting legislation on many of the issues discussed in the hearings will be difficult. MBA will continue to engage closely with lawmakers and the administration on issues important to our industry.
For more information, please contact Rachel Kelley at (202) 557-2816, Madisyn Rhone at (202) 557-2741, George Rogers at (202) 557-2797, and Jeremy Green at (202) 557-2849.
Virginia Local “Anti-Rent Gouging” Debate Halted for 2026
Virginia lawmakers again considered whether to let localities adopt “anti-rent gouging” measures, but that effort after developments last week has now stalled for the year.
• Senate Bill 355 would have authorized cities and counties to enact local ordinances limiting rent increases and enforcing those limits through civil penalties.
• SB 355 advanced far enough to receive a committee vote, but the bill failed to secure the support it needed, effectively ending the General Assembly’s rent‑gouging/rent‑control debate for the 2026 session. The proposal amounted to rent control and would have chilled investment and reduced the supply of needed rental housing.
Dig deeper: By an 11-4 vote of the Senate Committee on Local Government the bill was “continued to next session in Local Government,” which means the Senate is postponing further action on the bill until the next regular session when the same committee can resume consideration. But it will see no further movement during the current session unless the rules are suspended to revive it.
Why it matters: MBA supported the effort to oppose the bill through its participation in the Housing Solutions Coalition, a nonpartisan effort to combat harmful housing policies and advocate for solutions that increase housing production across the country. The campaign is co-chaired by former U.S. Secretary of Housing and Urban Development Marcia L. Fudge and former U.S. Representative Steve Stivers.
For more information, please visit MBA’s Rent Control Resource Page, or contact William Kooper (202) 557-2737 or Liz Facemire (202) 557-2870.
MBA Asset Management Committee Meeting Recap
Last Wednesday, MBA’s Asset Management Committee met for a discussion titled, “Loan Surveillance Today,” featuring insights from Andrew Schroeder (Voya) offering a life company perspective, David Haley (CBRE) providing a multifamily perspective, and Rob Walton (Trimont) sharing a special servicing perspective.
Why it matters: Asset performance is under heightened scrutiny. With shifting market dynamics and evolving property‑level challenges, effective loan surveillance is central to understanding risk and supporting sound portfolio decisions. Hearing from Voya, CBRE, and Trimont provided a wide‑angle view of how institutions are responding to surveillance complexities, giving members practical ideas they can bring back to their teams.
Join the Asset Management Committee by reaching out to Jacky Salazar at (202) 557-2746.
Upcoming MBA CREF Council 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:
• Commercial Council: Feb. 24
• FHA Council: March 10
• Servicer Council: March 19
• Bank Council: March 25
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:
• Internal CMF Benchmarking Requirements – Feb. 18
• Builder’s Risk Insurance Essentials for Commercial & Multifamily Properties – March 18
• Introduction to Commercial Mortgage-Backed Securities – April 8
• Basics of Commercial Loan Closing and Loan Documentation – May 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.
