CREF Policy Update: Senate Passes Bipartisan Housing Package; MBA Expresses Concerns with Single-Family Rental Investor Ban and Other Provisions
Senate Passes Bipartisan Housing Package; MBA Expresses Concerns with Single-Family Rental Investor Ban and Other Provisions
Last week, the full Senate passed an Amendment in the Nature of a Substitute (ANS) to the 21st Century ROAD to Housing Act, an updated version of H.R. 6644 (Housing for the 21st Century Act) that was intended to help boost housing supply, expand homeownership, reduce unnecessary regulatory burdens, and embrace modern manufactured and modular housing.
Unfortunately, the package contains a deeply problematic provision that would prohibit firms owning more than 350 units of “single-family” housing from purchasing additional units.
• The legislation originally combined the bulk of H.R. 6644 (passed the House in February) with the Senate’s ROAD to Housing Act (S. 2651) – which was cleared unanimously by the Senate Banking Committee last summer.
• MBA supported the underlying House and Senate (S. 2651, the ROAD to Housing Act) housing proposals that formed the basis of this bipartisan package, which was negotiated and amended by Banking Committee Chair Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA) last week.
• In the final bill, elements were added that would chill investment in build-to-rent communities, and technical errors would negatively affect FHA multifamily loan limits.
Read the bill text here, and a section-by-section here.
Why it matters: While the package includes many positive provisions that address affordability and improve the efficiency of the nation’s housing finance system, MBA does not yet fully support the housing package in its current form because of provisions that contain (read MBA’s letter):
Restrictions on institutional investment in housing (as mentioned above) that would further limit financing for build-for- and built-to-rent housing communities; and,
Drafting errors in the Federal Housing Administration (FHA) multifamily loan limit section that would unintentionally reduce loan limits and constrain capital for new rental housing development.
What they’re saying: In a press statement, MBA President and CEO Bob Broeksmit, CMB, said, “MBA urges Senate leaders and the Trump administration to work with the House to address these provisions before the legislation moves any further. The goal should be clear: a final package that puts the country on a path to increased affordability, lower operational costs, less red tape, and more housing, not less.”
Go deeper: In joint trades letters here and here and numerous conversations with lawmakers, MBA has stressed several key points regarding the investor ban, namely that any final legislation should avoid: inadvertently scoping in properties that have traditionally operated as multifamily rental communities, undermining housing supply and affordability by constraining capital for rental housing, limiting build-to-rent communities, and restricting mortgage servicers’ ability to acquire and dispose of REO properties – activities essential to maintaining housing supply and neighborhood stability.
What’s next: The White House has urged Congress to pass this bicameral housing package – with the institutional single-family rental investor ban included – as soon as possible. MBA remains engaged with the Administration and lawmakers in both chambers of Congress (and on both sides of the aisle) and will press the House to make refinements to the problematic provisions – most notably the investor ban and FHA multifamily program portions of the bill..
For more information, please contact Bill Killmer at (202) 557-2736, Rachel Kelley at (202) 557-2816, George Rogers at (202) 557-2797, and Jeremy Green at (202) 557-2849.
Fed Vice Chair of Supervision Bowman Previews Basel III Re-Proposal to be Released Today
On Thursday, Federal Reserve Vice Chair of Supervision Michelle Bowman in a speech at the Cato Institute previewed the expected Basel III Endgame capital re-proposal to be released today with a 90-day comment period.
Highlighting a need to eliminate duplicative capital calculations, Vice Chair Bowman emphasized that the new proposal will establish a single approach to calculating risk-based capital requirements for the largest banks. She also noted that the re-proposal will result in a small increase in requirements for the largest banks while G-SIB surcharge reform will result in a modest decrease. Overall, the largest banks should expect a small decrease in capital requirements.
Bowman said the re-proposal will eliminate the cap on mortgage servicing assets (MSAs) included in tier one capital and set the capital charge at 250% while regulators seek public feedback about the appropriate risk weight.
Why it matters: Capital requirements, while necessary for financial stability, can reduce lending and raise funding costs for market participants if not calibrated appropriately. Given the outsized effect bank capital requirements have on lending, it is imperative that regulators ensure capital requirements are not unduly burdensome on depositories and have a positive effect on banks’ business activities, including CRE lending and multifamily lending.
Go deeper: MBA recently submitted a Statement for the Record ahead of a Senate Banking Committee hearing with the prudential bank regulators, and led a broad joint trades letter to the banking agencies. Both letters expressed strong support for the Basel III re-proposal and made several recommendations, including recalibrating CRE risk-weights to better align the capital charges with the loan-specific risks as well as a number of other necessary single-family specific reforms.
The group’s recommendations on improving investment in housing and other commercial real estate include, among others:
• Adopting more granular, LTV-based risk weights;
• Reducing the punitive capital treatment of MSRs;
• Lowering the capital treatment of mortgage warehouse credit facilities; and,
• Ensuring predictable capital treatment for credit risk transfers.
What’s next: Based on Bowman’s comments, MBA is encouraged to see that most of its longstanding feedback has been considered, is eager to review the forthcoming proposal, and stands ready to work with the banking agencies on a balanced framework that supports sustainable mortgage origination, warehouse lending, robust servicing capacity, and continued access to affordable financing offered by both depositories and independent mortgage banks.
For more information and to participate in the Working Group that will meet to comment on this proposal, please contact Jamie Woodwell (202) 557-2936, Fran Mordi at (202) 577-2860, and John Lammle at (202) 557-2789.
Participate in MAA Action Week 2026: May 11-15
MAA Action Week is right around the corner, and this year’s campaign makes it easier than ever for members to raise their voices and advocate for the issues that matter most to our industry. From May 11–15, MBA will mobilize members nationwide to engage with policymakers, share their stories, and help shape the future of real estate finance.
SIGN UP to participate and run a company-wide campaign during this important week to help us grow MBA’s FREE MAA membership and reach our association-wide goal of reaching 80,000 members by year‑end.
Why it matters: Your engagement truly moves the needle. MBA is committed to supporting you every step of the way with ready-to-use resources, such as email templates, social media content, active MAA rosters, and more. Whether you have five minutes or an hour, there’s always a meaningful action you can take, and MBA ensures every option is simple, accessible, and impactful.
What’s next: Register now for MBA’s National Advocacy Conference (NAC), April 14–15, 2026, at the Westin DC Downtown. In addition to a dedicated CREF track, this is your opportunity to reconnect with peers, gain fresh insights, and get equipped with the tools and training you need to be an effective advocate on Capitol Hill.
For more information, please contact maa@mba.org or Jamey Lynch at 202-557-2818.
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:
• Servicer Council: March 19
• Bank Council: March 25
• Life Company Council: April 9
• Private Credit Finance: April 23
• Commercial Council: April 29
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:
• Data & System Privacy in an AI World – April 2
• Introduction to Commercial Mortgage-Backed Securities – April 8
• Basics of Commercial Loan Closing and Loan Documentation – May 12
• Mastering Commercial Insurance Modeling: Key Insights and Applications – May 21
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.
