CREF Policy Update: Partial Government Shutdown Ends as House Passes Five-Bill FY 2026 Appropriations “Minibus” Package; Includes HUD Funding
Partial Government Shutdown Ends as House Passes Five-Bill FY 2026 Appropriations “Minibus” Package; Includes HUD Funding
The full U.S. House yesterday afternoon passed a five-bill “minibus” Fiscal Year (FY) 2026 appropriations package – (as approved late last week by the Senate) – that effectively ends the four-day, partial government shutdown. President Donald Trump subsequently signed the legislation.
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. Today’s passed bill also includes a two-week continuing resolution (approved by the Senate on Friday) for the Department of Homeland Security through February 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 that could have created “frictions” at the closing table for consumers, lenders, and other market participants.
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% 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:
• $160 million for administrative expenses supporting FHA’s Mutual Mortgage Insurance (MMI) Program Account
• $56 million in funding for Ginnie Mae staffing and technology upgrades
• $57.5 million in funding for the Housing Counseling Assistance Program
• $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 Sept. 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.
President Trump Nominates Kevin Warsh to be Federal Reserve Chairman
Last week, President Donald Trump nominated Kevin Warsh, a former Federal Reserve governor with deep investment banking experience, to serve as Chairman of the Federal Reserve. Warsh previously served on the Fed’s Board of Governors from 2006-2011 and has remained an influential voice on monetary policy and financial markets.
• Warsh was previously scheduled (he declined in recent days) to speak at MBA’s Commercial/Multifamily Finance Convention and Expo next week. He has spoken in the past at MBA meetings, including the 2020 Mid-Winter Housing Finance Conference and MBA’s July 2020 board meeting.
• Current Fed Chair Jerome Powell’s term expires on May 15, 2026.
What they’re saying: In a press statement, Broeksmit said, “MBA congratulates Kevin Warsh on his nomination to serve as Chairman of the Federal Reserve. His prior service on the Federal Reserve Board, where he developed a reputation as a prudent, thoughtful voice on monetary policy, paired with his private sector experience, will be invaluable as he leads the Federal Reserve in what has become an increasingly challenging and complicated mission.”
Why it matters: The Federal Reserve Chair plays a central role in shaping interest rate policy, financial regulation, and bank capital standards—decisions that directly affect mortgage availability, housing affordability, and credit conditions across single-family and commercial/multifamily real estate markets. Leadership at the Fed will influence how banks allocate capital, participate in mortgage lending, and support commercial real estate financing during a period of economic uncertainty.
What’s next: Warsh’s nomination will head to the Senate Banking Committee for confirmation hearings, where lawmakers are expected to scrutinize his views on inflation, bank regulation, and the Fed’s independence. If advanced by the Committee, the nomination would then move to the full Senate for a confirmation vote.
For more information, please contact George Rogers at (202) 557-2797 and Jeremy Green at (202) 557-2849.
Federal Reserve Maintains Federal Funds Rate
In response to current economic conditions, the Federal Reserve decided to maintain the federal funds rate to a target range of 3.50-3.75% on Wednesday.
What they are saying: “While not a unanimous vote, there does seem to be a clear and consistent majority in favor of a pause in this rate-cutting cycle, a pause that likely continues unless or until the job market weakens further,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “With inflation remaining elevated, the FOMC majority does not seem in any rush to make further rate moves.”
• Read more of Fratantoni’s commentary here.
For more information, please contact Mike Fratantoni at (202) 557-2935
Thursday’s MAA Quarterly Webinar Recap
The Mortgage Action Alliance (MAA) hosted its quarterly webinar last week, where MBA’s Legislative and Political Affairs team delivered a timely briefing on the top policy priorities heading into the 2026 mid‑term elections.
• Speakers also provided a real‑time update on the Q1 legislative sprint and shared insights on the year‑end congressional closeout, including the heightened likelihood of a partial government shutdown. The webinar highlighted MBA’s National Advocacy Conference (NAC), taking place April 14–15, underscoring how state advocates can elevate their voices on Capitol Hill and strengthen the industry’s collective impact through national‑level engagement.
Why it matters: With the midterms approaching, the industry may see policy shifts tied to potential changes in congressional power. MAA encourages all members to leverage its full suite of advocacy tools to stay informed, engaged, and prepared to make their voices heard.
What’s next: Register for #MBANAC26. Keep the momentum going by also registering for part III of MBA’s State and Federal Advocacy Webinar & Fly-In Series, hosted by the Massachusetts Mortgage Bankers Association, taking place on Friday, Feb. 27, at 2:00 PM ET. This session will spotlight the Northeast region and is open to MAA and MBA members nationwide.
For more information, please contact maa@mba.org or Margie Ehrhardt.
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:
• All Council In-person Meet-up: February 8
• Structured Finance Council (in-person): February 10
• Commercial Council: February 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.
