Advocacy Update: Trigger Leads Bill Dropped from Conference Report; Broeksmit on GSE Reform; MBA Presses HUD MRB on Convenience Fees
Trigger Leads Bill Dropped from FY 2025 NDAA Conference Report
Despite successful efforts last month by our congressional allies – Senators Jack Reed (D-RI) and Bill Hagerty (R-TN) – in getting the bipartisan trigger leads Hagerty/Reed amendment included in the “managers’ amendment” to the Senate’s version of a Fiscal Year 2025 National Defense Authorization Act (NDAA), the provision was removed from the NDAA conference report just finalized between the House and Senate due to opposition from outgoing House Financial Services Committee Chair Patrick McHenry (R-NC).
The text of that negotiated conference report product (with no trigger leads provision) was formally released Saturday.
Why it matters: MBA is leading a diverse set of coalition partners to help our congressional allies – lead House sponsors Reps. John Rose (R-TN) and Ritchie Torres (D-NY), along with Senators Reed and Hagerty – advance needed reforms to curb the abusive use of trigger leads while preserving their use in appropriately limited circumstances during a real estate transaction. The Hagerty/Reed amendment mirrored the MBA-supported text of H.R. 7297/S. 3502, the Homebuyers Privacy Protection Act.
What’s next: Congress is expected to vote on the NDAA this week and faces a December 20, 2024, deadline to pass a continuing resolution (CR) to fund the government. In response to the amendment’s exclusion from the NDAA, Senators Reed and Hagerty may attempt to have their trigger leads amendment text included in the evolving version of a CR. The two Senators are also running a “hotline” to seek unanimous consent to pass S. 3502 in the Senate before year’s end – as a means to isolate any opposition and position the bill for the next Congress.
Go deeper: MBA will keep working with our allies – including a bipartisan set of 91 House and 43 Senate cosponsors – to explore any remaining options to get this important, bipartisan bill considered in the final days of the current session. If that doesn’t occur, MBA will work aggressively to advance this needed change to mortgage credit trigger leads policy with the 119th Congress.
For more information, please contact Bill Killmer at (202) 557-2936, Ethan Saxon at (202) 557-2913, George Rogers at (202) 557-2797, Madisyn Rhone at (202) 557-2741, and Rachel Kelley at (202) 557-2816.
MBA President and CEO Bob Broeksmit, CMB, penned a new blog post on how MBA and its members stand ready to lead any renewed efforts next year to release the GSEs from conservatorship.
MBA Responds to FHFA Suspended Counterparty Program Rule Re-Proposal
On Monday, MBA submitted a comment letter in response to the Federal Housing Finance Agency’s (FHFA) re-proposal of its Suspended Counterparty Program (SCP) regulation.
MBA strongly opposed FHFA’s initial July 2023 proposal that would have significantly expanded the SCP and exposed GSE-approved lenders and servicers to the threat of a draconian penalty – suspension of their seller/servicer status – for minor civil/administrative sanctions or misconduct.
In September 2024, FHFA announced a re-proposal of the amendments to its SCP regulation, which MBA commended for addressing the industry’s significant concerns with the original July 2023 proposal.
Why it matters: MBA’s letter commends FHFA’s more narrowly tailored proposal and urged FHFA to finalize the rule with one important revision to the definition of “covered misconduct” to further ensure that counterparties are not at risk for routine certifications. MBA suggests that the words “knowingly or recklessly” be inserted before “making false statements or claims.”
What’s next: MBA will continue to monitor any final developments and will keep members informed of any updates.
For more information, please contact Justin Wiseman at (202) 557-2854 or Alisha Sears at (202) 557-2930. 2854 or Alisha Sears at (202) 557-2930.
MBA Presses HUD MRB on Convenience Fees
On Tuesday, MBA urged the Department of Housing and Urban Development’s (HUD) Mortgagee Review Board (MRB) to rescind notices of violations (NOV) issued to numerous mortgage servicers that alleged servicers violated HUD policy by improperly charging borrowers convenience fees for expedited payment processing (so called “pay-to-pay” fees).
Why it matters: Specifically, HUD contends that accepting and processing borrowers’ mortgage payments online, over the phone through a customer service representative, or through interactive voice recognition is “part of a prudent mortgagee’s servicing activity” and therefore, charging a fee for such activity is prohibited.
MBA strongly disagrees with HUD’s conclusion as the Federal Housing Administration (FHA) has never issued explicit guidance prohibiting convenience fees, despite being well aware of the practice for decades. MBA believes retroactive administrative enforcement is inappropriate and misguided.
What’s next: MBA will monitor and communicate developments to members, including additional policy guidance that may prohibit convenience fees moving forward.
For more information, please contact Brendan Kelleher at 202-557-2779.
House Financial Services Committee Holds Hearing on Fintech, Artificial Intelligence
On Wednesday, the full House Financial Services Committee held a hearing entitled, “Innovation Revolution: How Technology is Shaping the Future of Finance.”
Lawmakers on both sides of the aisle expressed strong support for digital asset legislation to establish a federal regulatory regime for that sector, with members calling for the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) (H.R.4763). A bipartisan assortment of committee members noted their support for incentivizing capital formation and access, but were not unified behind any single piece of legislation.
Find the full summary hearing here and a recording here.
Why it matters: Artificial intelligence (AI) was another major topic of discussion by the panel, with elected officials exploring the role it will play in the U.S. financial system as well as discussing the possible harms – and boons – greater use of AI may bring. Members further discussed incentivizing investment and liquidity in both public and private markets, and the need to strike a balance between the two.
What’s next: MBA will continue to monitor developments on these issues before the House Financial Services Committee during the 119th Congress.
For more information, please contact Rachel Kelley at (202) 557-2816 or Madisyn Rhone at (202) 557-2741.
FHA Announces 2025 National Forward and HECM Loan Limits
FHA recently announced updated 2025 loan limits for its Single-Family Title II forward and Home Equity Conversion Mortgages (HECM) programs. Limits for single-unit homes rose to $524,225 in non-high-cost areas, $1,209,750 in high-cost areas, $1,814,625 in special exception areas, and $1,209,750 for HECMs across all areas.
Why it matters: FHA updates its annual loan limits using a formula prescribed by the National Housing Act (NHA). The formula considers county or Metropolitan Statistical Area (MSA) home sale data to set limits for different cost categories. The NHA ties FHA’s floor and ceiling loan limits to the national conforming loan limit set by FHFA, with adjustments for high-cost and special exception areas such as Alaska and Hawaii to reflect local median prices and construction costs.
What’s next: MBA will continue to engage with FHA on this and other critically important housing policy issues under the Trump administration.
For more information, contact John McMullen, AMP, at (202) 557-2706.
RECAP: Hundreds Participate in MAA’s Post-Election Briefing
MBA’s legislative and regulatory policy staff experts hosted a Post-Election Briefing as part of the Mortgage Action Alliance (MAA) Quarterly Webinar Series on Wednesday – with roughly 700 advocates in attendance. The webinar focused on the incoming Trump administration’s transition process and current nominations, the incoming 119th Congress, and what’s expected for our industry on the legislative and regulatory policy fronts. If you were unable to register, click here to request a link to the recording.
Why it matters: MAA’s Quarterly Webinars cover a full range of key policy issues that impact the real estate finance industry – and allow active MAA members to engage in advocacy year-round.
What’s next: Attend MBA’s National Advocacy Conference (NAC) on April 8 and 9, 2025, at the Capital Hilton in Washington, D.C. Join hundreds of industry advocates to meet with and educate policymakers on issues impacting your businesses and customers.
Register by February 24, 2025, to receive the early bird rate. 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 maa@mba.org or Jamey Lynch, AMP at (202) 557-2818.
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:
• Master the Art of Pricing and Rate Lock Strategies – Dec. 10
• High Performance Negotiations – Lessons and Strategies – Dec. 17
• New Entrants in the Mortgage Industry and Their Winning Strategies – Jan. 16
• Fundamentals of Commercial Insurance Issues and Problems – Jan. 28
• CREF Career Conversations: Insights from Industry Leaders – Jan. 28
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.
