CREF Policy Update: House Passes Amended Version of 21st Century ROAD to Housing Act; Kevin Warsh Confirmed as Fed Chair; HUD Secretary Turner Talks Funding at House, Senate Hearings
House Passes Amended Version of 21st Century ROAD to Housing Act
Yesterday afternoon, the U.S. House passed a revised version of the Senate’s 21st Century ROAD to Housing Act (H.R. 6644, as amended) by a large bipartisan tally, marking a significant step forward for MBA and its single-family and commercial/multifamily members.
• The legislation passed following MBA’s and other stakeholders’ push over several weeks for key revisions during negotiations between House Financial Services Chairman French Hill (R-AK) and Maxine Waters (D-CA) and other lawmakers.
• The package fixes prior concerns related to FHA multifamily loan limits and single-family disclosure requirements, preserves important USDA Rural Housing Service reforms, and codifies the GSEs’ reconsideration of value appraisal processes without increasing lender liability. The bill no longer includes a proposed expansion of an inefficient “first look” requirement for servicers.
• The bill also fixes industry concerns around a provision that would have required disposition within seven years of newly constructed “single-family” build-to-rent homes acquired by large institutional investors. Several members of Congress are committed to working with MBA and the Treasury Department to clarify the intent around concerns regarding existing “horizontal multifamily.”
• MBA’s legislative and political affairs team led a sustained lobbying effort – buttressed by multiple letters (independently and with housing partners) and repeated Mortgage Action Alliance Calls to Action – to educate House lawmakers on the need for critical revisions to the March 12 Senate-passed bill and help drive support for the improved package.
What they’re saying: In a press statement, MBA President and CEO Bob Broeksmit, CMB, said, “MBA commends House Financial Services Committee Chair French Hill, Ranking Member Maxine Waters, and the bipartisan group of lawmakers whose leadership and collaboration resulted in overwhelming passage of this consequential housing package. The House revisions addressed many key concerns raised by MBA and other stakeholders, strengthening the legislation while preserving important measures in the Senate’s bill to boost housing supply and expand access to affordable mortgage credit.”
What’s next: MBA remains engaged with House and Senate leaders and will monitor the expected Senate passage of the bill that will send the finalized measure to President Trump’s desk for his signature.
For more information, please contact Rachel Kelley at (202) 557-2816, Madisyn Rhone at (202) 557-2741, George Rogers at (202) 557-2797, or Jeremy Green at (202) 557-2849.
Senate Confirms Kevin Warsh as Federal Reserve Chairman
Last Wednesday, the Senate confirmed The Honorable Kevin Warsh to be Chair of the Board of Governors of the Federal Reserve System (“the Fed”) by a vote of 54-45.
Separately, the Senate confirmed Warsh on Tuesday for a 14-year term on the Fed Board by a vote of 51-45 (the difference in the votes was due to the absence of certain specific Senators). Warsh formerly served on the Fed Board from 2006 to 2011.
What they’re saying: MBA’s Broeksmit in a press statement said, “We look forward to continued engagement on policies affecting the banking and housing finance systems and will continue advocating for a more balanced and risk-aligned approach to capital standards affecting mortgage lending and commercial real estate finance. This includes our recommendations on the Basel III re-proposal, which will include reducing the risk weight on mortgage servicing assets to 100% and eliminating their cap included in Tier 1 capital, reducing the risk weight to 50% on warehouse lending lines, and better calibrating capital requirements for commercial and multifamily real estate lending and community investment activities.”
Why it matters: Warsh becomes Fed Chair at a time when inflation is on the rise, which may make rate cuts more difficult. The Fed is also engaged in numerous regulatory matters, such as the Basel III re-proposal.
Go deeper: During his nomination hearing, Warsh testified that an expanded Fed balance sheet distorts markets, favors financial assets, and weakens the Fed’s credibility. He supports gradually reducing the balance sheet and returning to interest rates as the primary policy tool to better serve the dual mandate of price stability and maximum employment.
• Warsh also stated that he has no fixed target for the balance sheet and emphasized that any reduction would require public, rigorous deliberation over time. Warsh also said that increasing the Fed’s balance sheet should be limited to crises.
For more information, please contact George Rogers at (202) 557-2797 or Jeremy Green at 202-557-2849.
Former CFPB Director Rohit Chopra Appointed to New California Consumer Protection Agency
Last Tuesday, California Governor Gavin Newsom announced the appointment of former Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra to lead California’s new Business and Consumer Services Agency, which launches on July 1, 2026.
• The new agency, announced last summer, is part of a larger reorganization that split the Business Consumer Services Agency (BCSA) and Housing and Homeless Agency into different entities. The BCSA oversees consumer affairs, licensing, and regulatory enforcement, and is the lead agency for the Department of Real Estate (DRE) and the Department of Financial Protection and Innovation (DFPI).
Why it matters: Chopra has continued to be vocal about his views on states enhancing consumer protections under the Trump administration, including promoting a state Community Reinvestment Act that would apply to all institution types. Previously, Chopra was appointed to lead the Democratic Attorneys General Association’s Consumer Protection Working Group. Now, as Secretary of BCSA, Chopra will have the authority to help shape the agenda of DFPI, one of the states’ leading “mini-CFPB” agencies.
What is next: MBA will monitor the situation with California MBA and support efforts to maintain a working relationship.
For more information, please or contact William Kooper (202) 557-2737 or Liz Facemire (202) 557-2870.
Secretary Turner Talks HUD Funding at House and Senate Hearings
Last week, HUD Secretary Scott Turner testified in support of President Trump’s request for FY27 Transportation and Housing and Urban Development (“T-HUD”) appropriations. The hearings before the House and Senate panels displayed predictable partisan divides – but also addressed certain key issues of interest to our industry.
• A summary of the House hearing can be found here, and the Senate hearing can be found here. The House hearing transcript is here, and the Senate can be found here.
Go deeper: As expected, key members of both subcommittees underscored the importance of increased housing supply and affordability.
At the Senate hearing, Senator Capito (R-WV) asked several relevant questions, including: “Within your existing authority, without new legislation . . . are there changes, maybe three changes that you could implement in the next twelve months to make FHA multifamily financing faster, simpler, and less costly.”
She also discussed the liquidity constraints faced by single-family servicers and asked what constraints there are for FHA reimbursing servicers more promptly for the outstanding taxes and insurance advances associated with insured loans.
• Of note at the House hearing, full Appropriations Committee Ranking Member DeLauro (D-CT) said, “[T]he Trump administration is adding pressure [onto] American families from all sides. They are pushing costs up through tariffs and pulling back aid through cuts. It is the worst of both worlds.”
What’s next: As is customary, Secretary Turner provided real-time responses to the questions he faced from both Senators and Representatives. He frequently offered for HUD to provide more-detailed responses in writing to certain specific questions he received.
• MBA will be checking with pertinent staff to review any responses to “Questions for the Record” that Turner may receive from elected officials in the coming days.
• The FY27 Fiscal Year begins on October 1, 2026. As HUD appropriations continue to be discussed, MBA will strongly advocate for the industry’s interests, including possible “report language” on policy matters – in addition to calling for appropriate HUD funding levels – as the appropriations process unfolds.
For more information, please contact Rachel Kelley at (202) 557-2816, Madisyn Rhone at (202) 557-2741, George Rogers at (202) 557-2797, or Jeremy Green at (202) 557-2849.
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. Visit www.mba.org/yourCREF to find out more. 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:
• FHA Committee: June 16
• Life Company Council: June 16
• Bank Council: June 18
• Structured Finance Council: June 24
• Private Credit Finance: June 17
• Agency Council: July 9
• Commercial Council: July 21
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:
• HUD’s Role in Multifamily Financing – May 20
• Mastering Commercial Insurance Modeling: Key Insights and Applications – May 21
• Understanding Tax-Exempt Private Activity Bonds in Affordable Housing Finance – June 12
• Fundamentals of Commercial Insurance Issues and Problems – July 15
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.
