Advocacy Update: MBA-led Coalition Letter to White House on Housing Affordability; State Updates
Trump Administration EO Would Limit Large Institutional Investors Home Purchases; MBA Leads Joint Trades Letter on Housing Affordability Recommendations
Ahead of his speech at the World Economic Forum in Davos, Switzerland, President Donald Trump issued an Executive Order (EO) that aims to restrict institutional purchases of single-family homes. The directive instructs federal agencies with housing programs to identify ways to halt government-backed financing, insuring or securitization of single family homes by large institutional investors that could otherwise be owned by individuals. It also prohibits agencies from selling federally owned single-family properties to large institutional investors.
• In an acknowledgment that Congressional approval would be required for some aspects of the EO, the Administration will prepare legislative recommendations to codify any policies into law.
• President Trump highlighted the EO during his Wednesday speech in Davos and touched briefly on other recent actions the Administration has taken to address housing affordability, including directing Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities to lower mortgage rates.
Go deeper: The EO directs the Treasury Department within 30 days to define “large institutional investor” and “single-family home.” Within 60 days, the housing agencies are instructed to issue guidance implementing restrictions on institutional investor participation in the single-family housing market. MBA’s primary concerns are ensuring any restrictions do not restrict the flow of capital for rental housing and ensuring that any definitions or restrictions do not inadvertently limit mortgage servicers’ ability to acquire and dispose of real estate owned (REO) properties in an efficient and orderly manner, which is critical to housing supply and neighborhood stability.
Why it matters: On Wednesday morning, MBA led a joint letter with America’s Credit Unions (ACU) and the Independent Community Bankers of America (ICBA) to National Economic Council Director Kevin Hassett on three near-term, actionable administrative reforms that can directly lower homebuying costs for borrowers without Congressional action. The three recommendations were:
• End the tri-merge credit reporting requirement and allow a single-file framework
• Responsibly reduce mortgage insurance premiums
• Coordinate a reduced LLPA across the grid and eliminate LLPAs for rate/term refinances
What’s next: The joint trades letter was submitted in anticipation of additional home affordability announcements expected leading up to President Trump’s State of the Union address on February 24, 2026. MBA will continue to engage with the Administration and Congress on the implementation of housing affordability proposals and legislation and will continue to advocate for common sense policies that improve housing affordability for homeowners and renters.
For more information, please contact Brendan Kelleher at (202) 557-2779.
House Approves FY26 HUD Funding Package; Shutdown Likely Averted
The full House of Representatives passed H.R. 7148, the Fiscal Year (FY) 2026 Consolidated Appropriations Act – which included funding for HUD and the Departments of Transportation, Health and Human Services, and Labor (and other related agencies) – by a wide bipartisan margin of 341-88.
• MBA indicated its support for this “T-HUD” appropriations “minibus” bill and urged all House lawmakers to vote in favor of the measure.
Why it matters: H.R. 7148 includes funding levels for FHA, Ginnie Mae, HUD rental assistance, housing counseling, and IT modernization that all align closely with prior FY25 levels. The package largely rejected the steep spending cuts and program eliminations proposed last year by the Trump administration. This was especially true in the HUD budget where lawmakers provided a robust 9 percent spending increase overall (nearly double the President’s HUD budget request).
Key MBA-supported provisions included in the package are:
• $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: The full Senate is slated to consider these HUD funding provisions this week (winter weather permitting) as part of a “minibus” package of six remaining appropriations bills that have already passed the House and send them to President Trump’s desk (he has already said he will sign them), averting another government shutdown and completing the FY 2026 federal budget cycle.
For more information, please contact Rachel Kelley at (202) 557-2816 and Madisyn Rhone at (202) 557-2741.
HUD Secretary Turner Testifies Before Full House Financial Services Committee
On Wednesday, the full House Financial Services Committee (HFSC) heard from Housing and Urban Development (HUD) Scott Turner for the first time since his Senate confirmation last year.
• The hearing examined the Trump administration’s ongoing aggressive push on housing affordability, including the pursuit of regulatory rollbacks, greater agency accountability, and potential changes to core housing and homelessness programs—issues that directly affect development feasibility, operating costs, financing certainty, and long-term housing investment decisions.
• Find a full summary of the hearing here and watch the hearing here.
Go deeper: Turner committed, to lawmakers from both sides of the political aisle, to provide greater detail to questions posed on topics ranging from the need to streamline FHA program processes to re-evaluating costly regulatory overlays (e.g., environmental, labor, and procurement requirements), and pursuing needed public housing authority-related reforms.
Why it matters: The hearing reinforced Congress’s oversight role shaping the future of housing policy through oversight of HUD’s staffing, enforcement posture, and program structure.
What’s next: MBA will remain engaged with FHA, Ginnie Mae, and the Secretary’s office in pursuit of our HUD-related housing program policy priorities.
For more information, please contact Rachel Kelley at (202) 557-2816 and Madisyn Rhone at (202) 557-2741.
MAA’s Next Quarterly Webinar: January 29
On ith MBA’s National Advocacy Conference just a few months away, the Mortgage Action Alliance’s (MAA) upcoming webinar will spotlight this premier advocacy event, scheduled for April 14–15.
• Join MBA’s Legislative and Political Affairs Team to explore how national-level engagement strengthens state advocacy efforts and amplifies the industry’s collective voice. This quarterly webinar will feature a timely briefing on the year-end congressional closeout, an overview of the Q1 legislative agenda, and a look at MBA’s key policy priorities in this pivotal mid-term election year.
Why it matters: As our nation marks its 250th birthday, there’s no better moment than now to join hundreds of industry advocates and claim your seat at the table where meaningful change takes shape!
What’s next: Register for Part II of MBA’s State and Federal Advocacy Webinar & Fly-In Series, hosted by the California Mortgage Bankers Association, on Wednesday, January 21, at noon PT/3:00 PM ET. Part II will highlight the West and Midwest regions—but the session is open to MAA and MBA members nationwide.
For more information, please contact maa@mba.org or Margie Ehrhardt at (202) 557-2708.
House Oversight Subcommittee Examines Housing Affordability
The House Oversight and Government Reform Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs held a hearing titled, “Housing Affordability: Saving the American Dream,” to examine the drivers of rising housing costs. The hearing highlighted a partisan divide, with Subcommittee Chairman Eric Burlison (R-MO) citing government regulation and inflation as primary cost drivers, while Ranking Member Maxwell Frost (D-FL) and other Democrats focused their commentary on the role of institutional investors and corporate practices.
• The hearing summary can be found here.
Why it matters: The hearing underscores differing policy approaches that will influence future housing legislation discussions, including proposals to increase housing supply through regulatory and tax reforms versus efforts to limit institutional ownership of single-family homes. These debates could have direct implications for housing affordability, market stability, and access to homeownership for first-time and low- to moderate-income borrowers.
What’s next: MBA will continue to engage with lawmakers from both parties to seek to advance balanced solutions that tackle affordability and expand housing availability sustainably.
For more information, please contact Rachel Kelley at (202) 557-2816 and Madisyn Rhone at (202) 557-2741.
New York Proposed Budget Released; Governor Reiterates Her “Let Them Build” Call to Action
On Tuesday, New York Governor Kathy Hochul released her proposed FY 2027 state budget.
• The Governor highlighted her administration’s achievements, including the state’s $25 billion affordable housing plan to create or preserve 100,000 affordable homes statewide. According to the budget, more than 77,000 homes have already been delivered or preserved. To further advance these efforts, the proposal includes an additional $250 million in capital funding to accelerate the construction of thousands of new affordable homes.
Dig deeper: The proposed budget would also invest in key housing supply and homeownership initiatives, including programs supporting prefabricated housing innovations, climate resiliency, and foreclosure prevention.
What’s next: The Senate and Assembly will now hold budget hearings and develop their respective responses before the final budget is due on April 1.
For more information, please contact William Kooper at (202) 557-2737 or Liz Facemire at (202) 557-2870.
MBA Briefs State Policy Makers on Industry’s Use of AI at National Conference of State Legislatures Task Force Meeting
MBA staff recently delivered a presentation at the National Conference of State Legislatures (NCSL) Task Force on Artificial Intelligence (AI), Cybersecurity and Privacy. MBA reviewed how AI is used in the mortgage industry, along with existing consumer protection laws and regulations.
Go deeper: The panel was moderated by Minnesota State Representative Steve Elkins and included the Deputy Commissioner from California’s Department of Financial Protection and Innovation (DFPI), who provided the regulator’s insights to AI use, and Rocket Mortgage staff who discussed firsthand use of the technology.
• Throughout the panel, DFPI supported MBA’s view that the mortgage industry is well-regulated and that the use of AI tools in no way diminishes the compliance obligations under existing fair lending and anti-discrimination laws.
Why this matters: MBA’s participation in NCSL events is helping educate key state legislators about AI use in the mortgage industry and provides an opportunity for discussion regarding legislators’ concerns. The timing of this panel is also helpful in elevating industry concerns as state legislative sessions get underway, in an effort to help better inform legislators before they introduce or vote on legislation this year.
What is next: MBA will continue the discussions with its state partners as legislative sessions get underway.
For more information, please visit the MBA resource center mba.org/stateai or contact Liz Facemire at (202) 557-2870.
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:
• Marketing Mastery for Loan Originators: Building a Consistent, High-Quality Pipeline – Feb. 9
• Renovation Lending Today: Market Trends, Best Practices & 203(k) Insights – Feb. 12
• Marketing Mastery for Loan Originators: Building a Consistent, High-Quality Pipeline – February 9
• Renovation Lending Today: Market Trends, Best Practices & 203(k) Insights – February 12
• How Secondary Marketing Powers Mortgage Lending – April 1
• State of the Market: Tech Trends Shaping the Future of Mortgage Lending – May 14
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.
