MBA Advocacy Update: Final Tax and Reconciliation Package Contains Key MBA-Supported Provisions; SCOTUS Rulings Analysis; HUD Energy Standards Proposal
MBA Working for You: Final Tax and Reconciliation Passage Contains Numerous Pro-Real Estate Tax Provisions
In what is a significant win for MBA members, the full U.S. House of Representatives passed the Senate’s substitute amendment – which passed on Tuesday – to H.R. 1, the Republican tax/reconciliation package, by a vote of 218-214. President Trump signed the legislation into law on July 4.
• The megabill includes numerous MBA-supported tax changes, increases the debt limit by $5 trillion, and contains spending cuts and energy, defense, and border security measures.
What they’re saying: MBA President and CEO Bob Broeksmit, CMB, in a press statement, said, “MBA is pleased that the final tax package preserves or strengthens – and makes permanent – numerous pro-housing and pro-economic growth tax provisions that were identified by our Board-level Tax Task Force, led by 2025 Chair-Elect Christine Chandler and Vice Chair Owen Lee.”
Why it matters: Through direct advocacy efforts with Republican lawmakers and their key staff, MBA secured numerous tax policy changes that preserve, and in several cases enhance, key elements of the 2017 Tax Cuts and Jobs Act, including:
• Makes permanent the 2017 individual rate structure and increased standard deduction;
• Maintains and makes permanent the 20% deduction in current law for Qualified Business Income under Section 199A – and expands the deduction limit’s “phase-in” range;
• Allows 100% bonus depreciation for certain qualifying properties and restores/makes permanent full expensing for new capital investments;
• Temporarily raises the current state and local tax (SALT) deduction cap to $40,000, with a $500,000 income cap that grows annually by 1% until it “snaps back” after five years;
• Permanently caps eligible mortgage acquisition debt interest deductibility (HELOCs eligible) at $750,000;
• Reinstates and makes permanent the deductibility of mortgage insurance premiums (subject to AGI limitations);
• Makes durable enhancements to the Low-Income Housing Tax Credit (LIHTC) program, e.g., providing a permanent 12 percent increase in 9% credit authority, while permanently lowering the bond financing test from 50 to 25 percent;
• Makes a renewing set of rounds of the Opportunity Zones (OZ) program permanent – with needed reporting/programmatic tweaks;
• Permanently reinstates EBITDA for the calculation of business interest deductibility; and,
• Significantly, does NOT alter the deferred tax treatment of MSRs, nor the tax code’s current “gain on sale” provision, Section 1031 Like Kind Exchange rules, carried interest provision, or capital gains rate.
What’s next: MBA is reviewing the legislation in greater detail and will provide a comprehensive summary of the tax provisions pertinent to real estate finance.
For more information, please contact Rachel Kelley at (202) 557-2816, Madisyn Rhone at (202) 557-2741, George Rogers at (202) 557-2797, Ethan Saxon at (202) 557-2913, Fran Mordi at (202) 557-2860, and/or Bill Killmer at (202) 557-2736.
SCOTUS Holds That Districts Courts Are Not Bound by FCC Interpretations of the TCPA Under the Hobbs Act
On June 20, 2025, the Supreme Court delivered its 6-3 opinion in McLaughlin Chiropractic Associates, Inc. v. McKesson Corporation, addressing the scope of judicial review under the Hobbs Act (also known as the Administrative Orders Review Act).
In this significant ruling, the Court held that district courts are not bound by Federal Communications Commission (FCC) interpretations of the Telephone Consumer Protection Act (TCPA) under the Hobbs Act. Instead, courts must interpret the TCPA themselves using standard statutory interpretation, while giving “appropriate respect” to the FCC’s interpretation.
• Essentially this means that federal courts, including district courts, are not bound to automatically accept an agency’s interpretation of a statute, particularly during enforcement proceedings.
What it means: This decision has the potential to upend years of TCPA precedent and create significant uncertainty as to the state of the law around the TCPA. Given that this ruling gives district courts more authority to interpret regulations, this could potentially lead to increased legal challenges. Courts will have the ability to go back to the drawing board on issues such as the definition of express written consent, how consent is obtained, what calls and texts are subject to the TCPA, and whether cell phones are subject to DNC protections.
What’s next: MBA will keep members informed about any updates and will continue to engage with the FCC on TCPA issues.
For more information, please contact Justin Wiseman at (202) 557- 2854 or Alisha Sears at (202) 557-2390.
Supreme Court Limits the Ability of District Courts to Issue Nationwide Injunctions
The U.S. Supreme Court recently held that District Courts have limited authority to issue nationwide preliminary injunctions. The circumstances of the case revolved around a challenge to an Executive Order limiting birthright citizenship, though the Court did not address the merits of the case.
• The Court held that the Judiciary Act of 1797 does not grant district courts the power to issue nationwide preliminary injunctions against acts from the Executive Branch. The Court believes that class-action lawsuits are the correct vehicle for obtaining relief for parties that are not named in the suit but still suffer harm from the government action.
• The Court did not address whether the Administrative Procedure Act authorizes federal courts to vacate federal agency action. For the time being, district courts still have the authority to issue nationwide preliminary injunctions against federal agency actions.
Go deeper: This decision means that only those individuals or organizations party to a lawsuit will benefit from an injunction against government action. Lawsuits brought forth by trade associations or membership organizations may now become more central to efforts to secure broader injunctive relief, especially in regulatory cases. This decision could lead to increased litigation, particularly class action lawsuits and may lead to a patchwork of enforcement of government policies, with different rules applying in different parts of the country.
What’s next: MBA will keep members informed about any updates and whether the decision will affect its litigation efforts going forward.
For more information, please contact Justin Wiseman at (202) 557- 2854 or Alisha Sears at (202) 557-2390.
HUD Proposes Reconsideration of Energy Standards
On Thursday, the Department of Housing and Urban Development (HUD) published a request for comments in the determination of impact of its 2021 updated energy building standards. The original Final Determination found that adoption of the energy codes would have no negative impact on the affordability and availability of housing. MBA argued that there would be a significant impact on the cost and feasibility of housing in many parts of the country.
Why it matters: Earlier this year, MBA urged the new HUD administration to rescind the energy code requirements in response to an Executive Order on lowering housing costs. In response, the Administration delayed the implementation of the rule while it reviewed its impacts. Reviewing the impact is the first step in a process that, in MBA’s view, should result in a full rescission of the rule.
What’s next: MBA will share its concerns about the cost impacts of the Rule within the 30 days after its published in the Federal Register.
For more information, please contact Darnell Peterson at (202) 557-2922.
California Enacts Industry-opposed Legislation to Regulate Subordinate Mortgages
On Monday, despite tireless advocacy efforts by California MBA and MBA to oppose a budget trailer bill related to housing, California Governor Newsom signed the legislation (AB 130, see pages 34-36, start of section is highlighted).
• The new law includes new requirements for servicers of subordinate mortgages, defined in the bill, and took effect immediately. The language of the new provisions was struck from a prior Senate bill as a result of California MBA engagement, but was then quickly added to this budget trailer bill. The bill was passed in just a few hours and enacted without receiving appropriate debate.
Dig deeper: The new law establishes “unlawful practices” for subordinate mortgage servicers, such as failing to provide: written communication in at least three years, periodic statements, a notice of servicing transfer, and more.
Why it matters: This year, multiple states introduced legislation aimed at protecting consumers from undischarged or dormant mortgages (so-called “zombie” mortgages with no activity or communication from the servicer for extended periods of time). MBA and its state partners were successful in significantly amending or stopping the majority of these efforts by striking or amending poorly drafted language that would have damaging impacts on mainstream mortgage servicers.
• Meanwhile, Connecticut legislators signed SB 1336 after amending the bill, providing reasonable standards for when a mortgage may still be enforced. This same policy issue drove efforts to license passive trusts this year in Maryland, which was resolved through enactment of SB 1026 / HB 1516. MBA expects this policy issue to continue growing in the states during 2026.
What’s next: MBA will continue to support California MBA’s efforts – and those in other states – going forward on this issue, which may include legal challenges.
For more information, please contact William Kooper (202) 557-2737 or Liz Facemire (202) 557-2870.
Consideration of California CRA Legislation Delayed; Industry Opposition Continues
On Wednesday, the California Senate Banking and Financial Institutions Committee did not consider legislation (AB 801) to impose a state-level Community Reinvestment Act (CRA) framework on independent mortgage banks (IMBs) and credit unions. Instead, it was announced on the eve of the meeting that the hearing on the bill was “canceled at the request of author.”
• While the bill remains alive, this is a significant development that could delay further consideration until 2026. AB 801 is vigorously opposed by MBA, the California MBA and aligned trade groups, and which has also been the focus of a Mortgage Action Alliance Call to Action.
Go deeper: Industry opposition has detailed the many reasons IMBs, and credit unions should not be subject to CRA and also the bill’s numerous flaws, such as how CRA would add new expensive and unnecessary compliance obligations. The bill’s alarming provision that could result in the imposition of administrative penalties of up to $100,000 for failing to comply with these new requirements has also been a key advocacy focus.
Why it matters: The bill passed the Assembly during June, but it was weakened by industry advocacy that helped produce a sharply divided vote. While there are 60 Democrats in the Assembly, only 45 voted to approve and 15 voted either “no” or “abstain.” They were joined by all 19 Republicans.
What’s next: MBA and the California MBA will continue to collaborate with allied industry trade groups in the months ahead to defeat or substantially amend the bill next year.
For more information, please visit the MBA State CRA Resource Center or contact William Kooper at (202) 557-2737 or Liz Facemire at (202) 557-2870.
MORPAC Action Week Finishes on High Note
MORPAC held its annual, industry-wide fundraising campaign from June 23 through July 1, with more than 20 participating MBA member companies.
• More than 500 individual contributors (45% new) collectively pledged $235,000 to MORPAC. MORPAC also hosted its two-part PAC Speaker Series event, with remarks offered by key members of the House Financial Services and Ways and Means Committees, Representatives Tim Moore (R-NC) and Jimmy Gomez (D-CA), respectively.
• A special thank you to our top five participating companies in terms of total dollars pledged during this important week: New American Funding, JLL, EPM, NorthMarq, and Lument.
Why it matters: MORPAC’s political capital is a powerful tool that helps MBA drive positive policy change, providing our fellow industry members with a platform to amplify their voices, educate decision-makers, and channel financial resources to support pro-industry candidates and advance MBA’s legislative agenda.
What’s next: MORPAC will continue to mobilize support to hit our $2.25 million fundraising goal for the 2026 election cycle. From MBA to you – thank you for your direct support of our advocacy efforts!
For more information on how to run a successful MORPAC campaign, please contact MBA’s Associate Director of Political Affairs, Erin Reilly at (202) 557-2751.
Register: Condo Lending Summit on July 23
MBA will be holding an in-person summit on July 23, 2025, in Washington, D.C., where lenders, representatives from the government agencies, and data providers will meet to address the key condo lending issues.
• Condominiums for many are an entry point into homeownership, and in many markets provide affordable housing options. Mortgage lending for condos plays a critical role in facilitating the access to financing for consumers, but the lending environment has become increasingly complex on many fronts.
Why it matters: The condo lending landscape continues to evolve rapidly due to factors such as housing market dynamics, investor requirements, and insurance challenges. Bringing together industry stakeholders to discuss these issues helps us to collaborate on solutions and provides educational and networking opportunities.
What’s next: Register here.
For more information, please visit the condo summit website or contact Joel Kan at (202) 557- 2951 or John McMullen at (202) 557- 2706.
July 22 CRA Workshop to Focus on Business Planning to Meet CRA Objectives
MBA will conduct an in-person CRA Workshop on July 22, 2025, in Washington, D.C., to bring industry experts – lawyers, managers of affordable housing and Community Reinvestment Act (CRA) lending, credit risk analysts, compliance specialists, consultants – together to discuss the current status of CRA and how to best achieve CRA lending objectives.
Go deeper: Over the years, there have been regulatory updates to CRA implementation, including significant revisions in 1995, 2021, and 2023.
• Most recently, agency efforts to modernize CRA have been controversial, resulting in court actions. At the same time, some states have enacted or are considering their own versions of CRA that may include both banks and independent mortgage companies.
Why it matters: The CRA challenges for residential mortgage lending are numerous, and include: general competition for loan volume, movement to a purchase market, tight housing inventories particularly for low-to-moderate income housing in many parts of the country, the changing landscape of retail bank branches in an electronic age, and possibly new rules at the state level, as well as lack of clarity in the rules at the national level.
What’s next: Register for MBA’s CRA Lending Workshop here.
Register: MBA’s mPact Summit on Aug. 5
Meet us in the nation’s capital for a full day of career development and networking on Tuesday, August 5, 2025. Back by popular demand, this event is built by young professionals in the real estate industry, for young professionals, who are focused on helping you get to the next level.
Why it matters: The mPact Summit isn’t just about career tips, it’s about empowerment, connection, and growth! The summit will provide the tools, confidence, and network to thrive and help you become tomorrow’s leaders.
Register now!
For more information, please contact Jacky Salazar at (202) 557-2746.
Upcoming MBA Education Webinars on Critical Industry Issues
MBA Education continues to deliver timely 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:
• AI on Trial: Fair Lending, Compliance, and the Fight for Transparency in Mortgage Lending – July 9
• Secure Your Access: Navigating FHA’s New Multi-Factor Authentication and Similar Requirements – July 9
• The Current State of Non-Agency Lending – July 15
• Bank-Owned Mortgage Divisions: What Bankers Need to Know to Manage Mortgage Banking – July 21
• Shared Equity Mortgages: How Companies Can Expand Their Community Impact – July 22
• Home Equity Lending in Focus: Data-Driven Strategies for Modern Markets – July 28
• Legal Duties to Prevent Fraud and Opportunities to Safeguard the System – Aug. 6
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.
