MBA Advocacy Update: FHFA Director Nominated; Confirmation Hearing Recaps on Turner, Bessent; FHA Finalizes Loss Mitigation
President and CEO Bob Broeksmit, CMB, discusses MBA’s support for the eventual release of the GSEs from conservatorship and why it must include an explicit federal backstop of the GSEs’ mortgage-backed securities to ensure a release does not harm consumers and our housing finance system: Watch on LinkedIn.
President Trump Nominates Bill Pulte as FHFA Director
President-elect Donald Trump announced the nomination of Bill Pulte to serve as Director of the Federal Housing Finance Agency (FHFA).
• Pulte, grandson of real estate homebuilding magnate William Pulte, is a private equity executive – he founded Pulte Capital Partners LLC – and is a well-known philanthropist.
What they’re saying: In a press statement on Pulte’s nomination, MBA President and CEO Bob Broeksmit, CMB, said, “We look forward to working with him [Pulte] and the FHFA staff on policies and programs that boost housing supply and create affordable opportunities for our nation’s homebuyers and renters while protecting taxpayers and ensuring a robust secondary mortgage market and Federal Home Loan Bank system for single-family and multifamily lenders.
He added, “The conservatorship of Fannie Mae and Freddie Mac was never intended to be permanent. MBA stands ready to work with the Administration and Congress to ensure that the transition to a post-conservatorship era for the GSEs is done the right way, including the critical step that Congress approves an explicit federal backstop for the GSEs’ mortgage-backed securities, to prevent severe market disruptions.”
What’s next: The Senate Banking, Housing, and Urban Affairs Committee is expected to schedule and hold a confirmation hearing for Pulte in the coming weeks. MBA will push for a speedy confirmation process and is committed to working with the incoming Trump administration, FHFA staff, and lawmakers on both sides of the aisle on all issues pertinent to the GSEs and real estate finance.
For more information, please contact Pete Mills at (202) 557- 2878 or Bill Killmer at (202) 557- 2736.
HUD Nominee Turner Testifies; MBA Leads Coalition Effort in Support Ahead of Hearing
The Senate Banking, Housing, and Urban Affairs Committee held a hearing to consider the nomination of Scott Turner to be the Trump administration’s Secretary of Housing and Urban Development (HUD).
Go deeper: A summary of the hearing can be found here. Earlier this week, MBA led a broad housing and real estate coalition letter that highlighted its support for Turner and called for him to be confirmed by the Senate as soon as possible.
Why it matters: Turner’s comments during the hearing centered on his support for encouraging localities to make home construction easier, including utilizing Opportunity Zones as a tax incentive for housing in distressed communities. If confirmed, Turner added that he would direct HUD to undertake regulatory reforms to boost both single and multifamily housing development.
What’s next: Senate Banking Committee Chair Tim Scott (R-SC) will schedule a vote for the panel on the Turner nomination in the coming weeks. MBA will continue to push for swift consideration of the Turner nomination – both in committee and on the Senate floor – so that the more comprehensive HUD team (e.g., FHA Commissioner, Ginnie Mae President, and senior staff) can be nominated, confirmed, and set in place as soon as possible.
For more information, please contact Ethan Saxon at (202) 557-2913 or George Rogers at (202) 557-2797.
Treasury Nominee Scott Bessent Testifies at Senate Finance Committee
Last week, the Senate Finance Committee held a hearing to consider the nomination of Scott Bessent to be the Secretary of the Treasury.
The bottom line: Republican Senators on the committee praised Bessent’s “American Dream” life story of rising from a working-class background to becoming a billionaire, his expertise with worldwide financial matters, and his answers to their questions.
Democratic Senators mostly praised his constructive meetings with them prior to the hearing while expressing concerns about his views on a wide range of policy topics (including tax and energy). Finance Committee Chairman Mike Crapo (R-ID) noted Bessent’s demonstrated capabilities from his lengthy career in financial services, including his expertise on economic issues involving capital markets, energy, foreign policy, national security, and American competitiveness. Ranking Member Ron Wyden (D-OR) expressed his concerns regarding President-elect Donald Trump’s trade policies and who he believes benefitted the most from the 2017 Tax Cuts and Jobs Act (TCJA)
• A summary of the hearing can be found here.
Go deeper: In Bessent’s opening remarks, he mentioned affordable housing, which Senator Maria Cantwell (D-WA) and Senator Elizabeth Warren (D-MA) agreed on as a needed priority. Bessent and Senator Marsha Blackburn (R-TN) discussed the vital need for the extension of the expiring TCJA Section 199A small business “pass-through” deduction provision.
Why it matters: If confirmed, Bessent will play a pivotal role on many of MBA’s key issues, including tax policy, the GSEs’ potential release from conservatorship, capital rules, and affordable housing.
What’s next: Mr. Bessent and his transition team will have to answer a multitude of questions for the record (QFRs) submitted by Finance Committee Senators. MBA has collaborated with Senate staff on both sides of the aisle to ask that QFRs on issues such as the responsible release of the GSEs and various tax matters be proffered.
• Once Bessent submits his answers to the QFRs, Senate Finance Chair Crapo can schedule a vote for the panel on the Bessent nomination. Given the importance of the Secretary of Treasury, it is anticipated at the time of this writing that Bessent’s nomination will be among the first confirmation votes taken after President-elect Trump takes the Oath of Office on Monday, January 20.
• MBA will continue to push for the swift consideration of the Bessent nomination – both in committee and on the Senate floor – so the entire team at Treasury can be nominated, confirmed, and set in place as soon as feasible.
For more information, please contact George Rogers at (202) 557-2797 or Ethan Saxon at (202) 557-2913.
2025 Tax Cuts and Jobs Act Debate Formally Begins
On Tuesday, the House Ways and Means Committee held its first hearing of the 119th Congress, focusing on the potential for extending the key provisions of the 2017 Tax Cuts and Jobs Act (TCJA).
• Lawmakers debated the permanency of key provisions, including the 199A pass-through deduction for small businesses and the Low-Income Housing Tax Credit (LIHTC). Republicans emphasized the need for certainty to support economic growth, while Democrats raised concerns about the TCJA’s fiscal impact and distribution of benefits.
Why it matters: The 199A deduction, the LIHTC, and other expiring TCJA provisions (and other key real estate-related provisions that may be in play) remain pivotal for small business competitiveness and real estate supply and investment. Both parties agreed on the need for re-examining the tax code but differed on how to offset the costs of potential tax policy changes (and the TCJA extension).
Go deeper: For more details on the hearing, read the full summary here.
What’s next: MBA will continue to advocate for the industry’s tax priorities that promote housing affordability and economic stability.
For more information, please contact Bill Killmer at (202) 557-2936 or Madisyn Rhone at (202) 557-2741.
FHA Finalizes Loss Mitigation Proposal
FHA last week announced its permanent loss mitigation guidance for mortgage servicers quickly after receiving stakeholder input before the holidays. FHA’s guidance updates the loss mitigation available to borrowers at risk of foreclosure – a top MBA policy priority.
Why it matters: FHA’s announcement implements the lessons learned from the COVID-19 pandemic before its temporary guidance was set to expire in April 2025. Now, with yesterday’s announcement and based on MBA’s feedback, FHA’s COVID-19 Recovery Options will remain available to borrowers through February 1, 2026, which also gives servicers a significant runway to adjust their operations. FHA’s announcement arrives at a critical time to particularly assist borrowers impacted by natural disasters, such as the flooding in the Southeast last fall and this month’s California wildfires.
Go deeper: In addition to the extended implementation timeline, FHA’s announcement implements the feedback MBA and industry stakeholders provided in our comments to FHA’s original draft. For example:
• Loss mitigation options remain streamlined;
• Trial Payment Plans are required to ensure affordability; and
• The Equity Saver Sale was not finalized; stakeholders can continue to comment through March 17, 2025
What they’re saying: In a press statement, MBA’s Broeksmit said, “MBA appreciates FHA’s efforts to update its loss mitigation waterfall to preserve COVID-19 flexibilities and give mortgage servicers a variety of effective tools to help distressed homeowners – regardless of their financial hardship – stay in their homes. We will work with the incoming leadership at FHA on policy changes that make mortgage servicing more efficient for consumers and servicers alike.”
What’s next: MBA will continue to review FHA’s guidance, which is effective on February 2, 2026.
For more information, please contact Brendan Kelleher at (202) 557-2779.
FHA Finalizes Policy Regarding Inclusion of Boarder Rental Income
Last Monday, FHA announced the publication of Mortgagee Letter (ML) 2025-04, Revisions to Policies for Rental Income from Boarders of the Subject Property.
• The provisions announced in this ML create greater flexibility for borrowers to use the income received from individuals who rent space in their home — referred to as boarders in Single-Family Housing Policy Handbook 4000.1 (Handbook 4000.1) — to qualify for an FHA-insured refinance or purchase-money mortgage. This new flexibility includes a revision to the required underwriting standards for documenting and calculating this type of income.
• MBA submitted comments supporting this policy update in December. MBA also made additional policy recommendations necessary to mitigate lender risk and address clarifying questions around borrower reserve requirements, gaps in boarder income history, and applicability to loan various types. The policy was ultimately finalized without changes.
Why it matters: FHA recognizes that rental income from individuals renting space in borrowers’ homes can be a viable source of income that increases housing affordability and allows borrowers to better manage housing costs.
What’s next: To support implementation, FHA will host a stakeholder briefing on Monday, January 29, from 2:00 PM to 3:00 PM ET. This session is open to underwriters, loan officers, processors, appraisers, quality control professionals, and other industry experts.
Register here to attend and pre-submit your questions by January 22 to sffeedback@hud.gov with the subject line: Borrowers Using Income from Individuals Renting Space Inside the Borrower’s Home. The provisions of this ML may be implemented immediately; compliance is mandatory for FHA case numbers assigned on or after March 14, 2025. The updates will also be incorporated into a future edition of Handbook 4000.1.
For more information, please contact Darnell Peterson, AMP, at (202) 557-2922.
New York Governor Proposes Ambitious 2025 Housing Agenda
During remarks to open the 2025 legislative session in Albany, New York, Governor Kathy Hochul this week announced several initiatives to expand homeownership and rental opportunities. Reflecting on a host of housing accomplishments from 2024, Governor Hochul noted that rents and mortgages were still unaffordable for many families and that “…the only way to decrease housing costs is to increase supply. We need to build, and build, and build some more.”
Why it matters: The Governor’s agenda is vast, and include the following elements:
• A $100 million Pro-Housing Supply fund for certified Pro-Housing Communities to assist with critical infrastructure projects necessary to create new housing, such as sewer and water infrastructure upgrades;
• New grant funding to offer technical assistance to localities seeking to foster housing growth that would help with development of master plans, zoning updates, and streamlined permitting procedures;
• New regulations to streamline environmental review for modest sized home development;
• A new mixed-income revolving loan fund to help upstate communities who do not have the tools to create mixed income rental housing get assistance to fill construction financing gaps by providing a lower-cost and more flexible form of capital;
• Doubling the amount of the tax credits available through the state’s low-income housing tax credit program;
• A bill to ban the sale or use of rental property “price fixing algorithms;”
• Legislation to disincentivize large investment entities from buying single-and two-family homes by requiring a 75-day waiting period for investors to make an offer on one- or two-family homes;
• A bill to deny institutional investors from utilizing interest deductions, depreciation deductions, and other expenses associated with ownership;
• $50 million in capital funding to incentivize the building of more “starter homes,” including innovative approaches such as the use of factory-built and modular development;
• $50 million in first-time homebuyer downpayment assistance; and
• A local government opt-in for an affordable homebuyer property tax incentive for homes built with public or nonprofit assistance and sold to low- and moderate-income buyers.
What’s next: Governor Hochul in the coming weeks will release her proposed budget with accompanying legislative language that will offer more than bullet points. The Legislature will then begin hearings to consider her agenda before enacting the state budget ahead of the April 1 state constitutional deadline. MBA and the New York MBA will continue to collaborate in representing the industry’s interests during this process.
For more information, please contact William Kooper at (202) 557-2737 or Liz Facemire at (202) 557-2870.
Attend #MBANAC25 on April 8-9
Join hundreds of industry advocates in Washington, D.C., April 8-9, 2025, for MBA’s National Advocacy Conference (NAC). NAC will address critical issues facing the industry and provide a platform for discussions, networking, and collaboration among members and key stakeholders.
Go deeper: The first 100 days of the Trump administration will set the tone for the 119th Congress and its ability to pursue policy priorities, including the future of the GSEs and a comprehensive tax debate. Advocates will be able to represent their state and meet directly with federal elected officials to help drive meaningful change for the real estate finance industry and the communities we support.
Why it matters: MBA will continue to work by proxy on our members’ behalf, but we need you advocating with us! NAC25 is the next best opportunity to make your voice heard by meeting with policymakers and elected officials in Washington to address issues of importance to your business. All MBA members are encouraged to attend this event, and no prior advocacy experience is needed. MBA will provide attendees with the required training and resources to effectively communicate with legislators.
What’s next: Register by February 24 and save! MBA offers special rates for members of MBA’s young professionals’ network (mPact), the Certified Mortgage Banker (CMB) Society, and group rates for MBA member companies as well.
For more information, please contact Jamey Lynch at (202) 557-2818.
MISMO Hosts 300 Mortgage Professionals at Winter Summit
Last week, MISMO held its Winter Summit in Miramar Beach, Florida. Experts collaborated on solutions related to challenges with evolving risks in customer identification, changes in credit reporting, property appraisals and automated valuation models, servicing transfers, and artificial intelligence.
Why it matters: MISMO is focused on addressing the most critical issues facing the industry through its collaborative consensus process that includes representatives from across the mortgage finance ecosystem including lenders, vendors, the GSEs, federal agencies, and regulators.
What’s next: MISMO will hold its next summit in Boston in June 2025.
For more information, please contact info@mismo.org.
mPower Moments: On Taking Care of Yourself with Goldie Hawn
During MBA’s 2024 Annual Convention and Expo, mPower Founder Marcia Davies sat down with Academy Award-winning actress Goldie Hawn, where she discussed her career, motherhood, and her courageous journey of combatting anxiety. While the conversation with Goldie was nearly an hour long, we have the pleasure of sharing a snippet here.
What’s next: To watch more mPower Moments, click here.
For more information, please contact Marcia Davies at (202) 557-2707.
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:
• Fundamentals of Commercial Insurance Issues and Problems – Jan. 28
• Safeguarding Your Mortgage Business Against Costly Natural Disaster Risks and Attracting Opportunities – January 29
• Turning Data into Action: Enhancing Recruiting and Solving Loan Officer Performance Challenges – February 4
• RESPA at 50: Necessary Reforms to Modernize RESPA Section 8 – February 5
• Recent Trends in Fair Lending and What to Expect with the Administration Change – February 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.
