Advocacy Update: CFPB Announces Pause in Enforcement of Nonbank Registry Rule; House, Senate Authors Reintroduce Trigger Leads Proposal
On Friday afternoon, the Consumer Financial Protection Bureau (CFPB or the Bureau) announced that it is offering regulatory relief to covered nonbanks by not prioritizing enforcement or supervision actions with regard to entities that do not satisfy future deadlines under its Nonbank Registration Regulation, finalized in 2024.
• The CFPB stated that the “policy applies to, but is not limited to, the upcoming April 14, 2025, registration deadline for entities subject to 12 CFR 1092.206(a)(2) and July 14, 2025, registration deadline for entities subject to 12 CFR 1092.206(a)(3).”
• The Bureau will “instead continue to focus its enforcement and supervision activities on pressing threats to consumers,” and is “further considering issuing a notice of proposed rulemaking (NPR) to rescind the regulation or narrow its scope.”
Why it matters: MBA repeatedly voiced its concerns (see March 2023 letter) regarding the regulation’s costly and duplicative reporting framework and appreciates the CFPB’s announcement. MBA also urged the Trump administration to delay the upcoming reporting deadlines to provide the CFPB with adequate time to reconsider the costs and statutory basis for the database.
• MBA has stressed that the CFPB could have instead added its enforcement information on mortgage companies to the already comprehensive consumer-facing database maintained by the Conference of State Bank Supervisors’ NMLS Consumer Access portal.
What’s next: MBA will monitor the CFPB’s next steps and will advocate for them to consider issuing an NPR to rescind the regulation.
For more information, please contact Justin Wiseman at (202) 557- 2854 or Alisha Sears at (202) 557-2390.
House and Senate Authors Reintroduce Triggers Leads Proposal
Thursday, Reps. John Rose (R-TN) and Ritchie Torres (D-NY) and Senators Bill Hagerty (R-TN) and Jack Reed (D-RI) reintroduced a revised version of the Homebuyers Privacy Protection Act for the 119th Congress (H.R. 2808 and S. 1467).
• MBA’s President and CEO, Bob Broeksmit, CMB, issued a statement of strong support upon the formal enrollment of the two bills on Thursday.
Why it matters: The reintroduction of the two bills reignites the debate to curb the abusive use of mortgage credit trigger leads – other than in appropriately limited circumstances (such as existing customer relationships). Consumers remain vulnerable to trigger leads abuses and MBA has continued its efforts to work with coalition partners and our congressional allies to advance this needed legislative fix.
What’s next: MBA will continue to work with the bill’s authors to help build additional support for the proposal in both chambers of Congress – including appropriate consideration of the bills (in the near term) by the House Financial Services and Senate Banking Committees, respectively.
• You can expect a Mortgage Action Alliance (MAA) Call to Action to help you urge your elected officials to cosponsor H.R. 2808 and S. 1467 early next week!
For more information, please contact Madisyn Rhone at (202) 557-2741, Rachel Kelley at (202) 557- 2816, Ethan Saxon at (202) 557-2913 or George Rogers at (202) 557-2797.
Sustained Industry Advocacy Prevails in Passage of Critical Maryland Legislation to Exempt Passive Trusts from Licensing
In an important advocacy victory on Monday, the Maryland Legislature gave final and overwhelming approval of MBA-supported legislation (HB-1516/SB-1026) ahead of the Legislature’s adjournment for 2025 later in the day.
• The bills will address the Maryland Office of Financial Regulation’s (OFR) January 10, 2025, guidance and emergency regulations stemming from the Estate of Brown v. Ward court ruling. The legislation has been supported by OFR, which extended the enforcement deadline for trust licensing to July 6, 2025, following efforts by an MBA-led coalition in pushing for this legislation.
Why it matters: The OFR’s initial policy interpretation significantly expanded the court’s opinion to require licensing of mortgage trusts, raising urgent concerns for secondary mortgage market participants. The language of the bills would create necessary licensing exemptions in state law. MBA Mortgage Action Alliance (MAA) members in Maryland have been actively urging their representatives to expedite the consideration and enactment of this legislation. Additionally, an industry coalition submitted a letter to OFR in January, strongly encouraging the rescission of its guidance and regulations.
What’s next: MBA and the Maryland Mortgage Bankers and Brokers Association (MMBBA) have been working with member companies and industry association partners to advocate for these bills and will now push for quick signature by Maryland Governor Wes Moore and for the rescission of the OFR’s guidance and regulations.
For more information, please contact William Kooper at (202) 557-2737 or Justin Wiseman (202) 557-2854.
MBA Supports Advancement of VA Home Loan Reform Bill, Urges Swift Committee Action
On Wednesday, the House Veterans’ Affairs Subcommittee on Economic Opportunity advanced H.R. 1815, the VA Home Loan Program Reform Act, with bipartisan support. MBA submitted a letter from Chief Lobbyist Bill Killmer ahead of the markup urging the advancement of a permanent partial claim option for consideration by the full House Veterans’ Affairs Committee – in order to preserve critical loss mitigation tools for veterans.
Why it matters: MBA commended the subcommittee for including a partial claim program solution in both the majority and minority substitute amendments that were offered, and specifically supported the improvements needed to the proposal, such as:
• Clarifying that partial claims do not diminish the guaranty on existing VA loans;
• Increasing the maximum claim amount from 20% to 30% of the unpaid principal balance;
• Allowing for multiple partial claims, especially after disasters or recurring hardship; and
• Requiring formal rulemaking for implementation to ensure clarity and transparency.
MBA believes that swift action is needed to protect veterans from foreclosure risk following the sunset of the VA’s temporary Veterans Affairs Servicing Purchase (VASP) program. Read a summary of the HVAC markup proceedings here.
Go deeper: During the markup, the subcommittee adopted Chairman Derrick Van Orden’s (R-OR) majority amendment in the nature of a substitute (ANS) by voice vote. Two alternative proposals from Ranking Member Pappas both aimed at temporarily reinstating the VASP program were rejected.
• H.R. 1815 now awaits full committee consideration (hopefully as soon as late April or early May).
VASP Implications: With new VASP loan purchases slated to end on May 1, MBA staff and several servicing executives met with the VA on Thursday to obtain operational details on the wind down. VA advised MBA members that it expects to release detailed policy guidance phasing out the VASP program on Tuesday, April 15. MBA also confirmed that:
• servicers must report loans that automatically qualify for VASP and do not need a Trial Payment Plan by April 30, and
• Borrowers in active TPPs or that begin new TPPs must be completed by Aug. 31.
What’s next: MBA will continue to advocate for swift passage and key improvements to ensure a final House bill provides a durable, scalable solution for veteran homeowners facing financial hardship – while continuing to push for parallel Senate action.
For more information, please contact Madisyn Rhone at (202) 557-2741 or Rachel Kelley at (202) 557- 2816.
House of Representatives Passes Identical Version of Senate’s Budget Framework; Reconciliation Debate Begins
Last week, the full House of Representatives passed a version of the Fiscal Year 2025 Concurrent Budget Resolution (H.Con.Res. 14) identical to one passed recently by the Senate. This House and Senate alignment on a budget framework was needed to set the stage for a highly anticipated tax/reconciliation debate given the expiration of many major provisions of President Donald Trump’s 2017 tax reforms.
• The vote on the framework was passed along largely partisan lines, with all Republicans but two voting for the measure (216-214).
Why it matters: The macro tax debate will pit fiscal hawks against moderate Republicans as GOP leaders try to square their conflicting demands to cut billions of dollars from federal programs and protect safety-net programs like Medicaid. MBA is advocating to preserve major provisions of the current tax code central to our members’ business operations – and needed to maintain an appetite for investment in commercial/multifamily real estate.
What’s next: Republicans on both sides of the Capitol can begin the even-heavier lift of writing — and then whipping support for — the behemoth package of tax cuts, military spending, energy policy, border security investments, and more. MBA’s Board-level Tax Task Force will continue to provide needed guidance to our engaged association staff as MBA’s direct/grassroots lobbying efforts intensify in the coming weeks.
For more information, please contact Bill Killmer at (202) 557-2736.
Recap: MBA’s National Advocacy Conference (NAC25)
Last week, MBA hosted its annual legislative fly-in before a packed house of approximately 600 industry advocates.
These National Advocacy Conference (NAC25) attendees heard from a great lineup of guest speakers, including HUD Secretary Scott Turner, Senate Banking Committee Members Thom Tillis (R-NC), Pete Ricketts (R-NE), Elizabeth Warren (D-MA), and Mark Warner (D-VA), and House Financial Service Committee Members Congresswoman Lisa McClain (R-MI) and Congressman Ritchie Torres (D-NY).
Go deeper: More than 400 MBA members, representing 43 states, participated in 285 scheduled Capitol Hill meetings on Wednesday. Members pressed their lawmakers on policy priorities ranging from mortgage credit trigger leads to tax policy and housing affordability to the need for partial claim authority for the VA Home Loan program.
• Special congratulations go out to the 2025 Burton C. Wood Legislative Service Award winner, Western MAA Vice Chair Becky Sandiland, CMB, of Belay Bank Mortgage!
• Save the Date for #NAC26 – April 14-15, 2026, in Washington!
Why it matters: NAC is a singular opportunity for mortgage industry constituents to meet with their elected officials (and top aides) to discuss issues that impact housing consumers and mortgage business operations in their respective states and districts.
What’s next: MBA will continue to engage with industry’s advocates to help advance our policy priorities throughout the year. For example, join MBA for the Mortgage Action Alliance’s (MAA) Action Week (May 12-16) and encourage your industry colleagues to also get involved!
For more information, please contact Jamey Lynch, AMP at (202) 557-2818.
MBA State and Local Workshop Provides Empowerment Tools to Partner Associations
This week, state and local real estate finance association leaders from nearly 40 associations traveled to Washington, D.C., to learn from each other and share best practices at MBA’s State and Local Workshop. Attendees engaged in panel sessions and open discussions on strategies to enhance their advocacy effectiveness and build member value.
Why it matters: The industry’s 134 independent associations are essential to advancing real estate finance interests that benefit the industry and consumers at the state and local level. Their robust actions have led to an impressive string of legislative and regulatory accomplishments over the last decade.
• The group explored new opportunities such as partnerships with MBA Education and adding programs and services for commercial and multifamily businesses. The group also explored how to better leverage the Certified Mortgage Banker (CMB) community to enrich the ranks of their groups’ volunteers.
What’s next: MBA will continue to convene its partner associations to carry on the exchange of ideas and is already surveying this year’s participants for their feedback to begin planning next year’s Workshop on April 13-14.
For more information, please contact William Kooper (202) 557-2737 or Ainsley Zimmer (202) 557-2796.
REGISTER: Town Hall with MBA Leadership: The New Administration’s First 100 Days
Next Thursday, April 17, at 3:00 p.m. ET, MBA’s Pete Mills, Senior Vice President of Residential Policy and Strategic Industry Engagement, and other MBA leaders engaged on policy issues, will host another town hall webinar on the latest developments in the single-family and commercial/multifamily arenas under the Trump administration and MBA’s ongoing work on them.
Register here for MBA’s new series covering the first 100 days of the Trump administration. Attendees can send questions beforehand to First100Days@mba.org.
Why it matters: MBA continues to monitor ongoing developments at the federal agencies and is engaging with the Trump administration to promote agency activities and priorities that advance investment and growth in real estate markets. Hear the latest from the team on recent activities at FHFA, HUD, and other federal agencies.
What’s next: MBA remains actively engaged with legislators, senior appointees, and key staff at all agencies that impact the industry and continues to:
• Advocate for the continuation of programs and policies that benefit the real estate finance markets, borrowers, and the industry;
• Recommend sensible changes that lower the cost of lending, promote competition, and ensure continued support for commercial and multifamily investment; and
• Warn against potential actions that would lead to disruptions in the single-family and commercial/multifamily markets.
For more information, please contact Bill Killmer at (202) 557-2736 or Pete Mills at (202) 557-2878.
MBA, Other Trades Respond to House Energy & Commerce Committee RFI on Data Privacy
Last Friday, MBA signed onto a joint trades letter responding to a request for information (RFI) from the House Energy & Commerce Committee (E&C Committee) on data privacy, data security, and artificial intelligence (AI).
• The RFI asked questions to all industries related to establishing a national data privacy law, similar to the American Data Privacy and Protection Act (ADPPA) that was introduced in a previous Congress. The RFI also asked questions about how this national data privacy law should regulate the use of artificial intelligence.
Why it matters: In the letter, MBA and the other trades argued that any national data privacy law should recognize the privacy and data security standards that are already in place for financial institutions under the Gramm-Leach Bliley Act (GLBA) and other financial privacy laws and that these laws should be enforced by federal and state regulators. Additionally, Congress should eliminate the patchwork of state privacy, data security, and AI laws. Lastly, Congress should recognize existing risk management frameworks that financial institutions already follow.
What’s next: MBA will monitor this effort and keep members informed if and when Congress attempts to fashion federal data privacy standards.
For more information, please contact Madisyn Rhone at (202) 557-2741, Rachel Kelley at (202) 557- 2816, Justin Wiseman at (202) 557-2854 or Gabriel Acosta at (202) 557- 2811.
Senate Banking Committee Holds Federal Reserve and HUD Nominations Hearing
Thursday, the Senate Banking Committee held a hearing to consider the nominations of Andrew Hughes and David Woll to be HUD Deputy Secretary and General Counsel, respectively, and current Federal Reserve Governor Michelle Bowman to be Vice Chairman for Supervision of the Federal Reserve Board of Governors.
• A summary of the hearing can be found here.
Why it matters: The hearing featured significant partisan debate over President Donald Trump’s economic policies, from reducing federal employees at HUD to the imposition of tariffs and their impact on housing affordability. Senators also gave intense scrutiny to Bowman’s views of recent Federal Reserve actions including Basel III rulemaking, the collapse of Silicon Valley Bank, and bank examination activities.
• Hughes pledged to increase housing supply, reduce barriers to homeownership, and ensure transparency in HUD’s operations.
• Woll highlighted his experience managing investigations at HUD as Deputy General Counsel and his role as General Counsel for the Special Inspector General for Pandemic Recovery, where he oversaw legal matters ranging from ethics to interagency cooperation.
• Bowman said she would prioritize four key areas: the need to reform and refocus supervision to address weaknesses observed in recent years, the importance of regulatory efficiency and tailoring, the need to foster innovation in the banking system, and the importance of transparency and accountability in both supervision and regulation.
What’s next: The committee is expected to hold an executive committee meeting to vote on the nominations in May.
For more information, please contact Ethan Saxon at (202) 557-2913 or George Rogers at (202) 557-2797.
HFSC Subcommittee on Oversight and Investigations Hearing: Restoring Accountability at HUD
On Wednesday, the House Committee on Financial Services Subcommittee on Oversight and Investigations, led by Chairman Dan Meuser (R-PA), held a hearing titled, “Decades of Dysfunction: Restoring Accountability at HUD.”
• The hearing focused on the urgent need for HUD to modernize its outdated IT infrastructure, which Republican members and Acting Inspector General Begg argued currently limits HUD’s ability to collect data, monitor program performance, and detect waste, fraud, or abuse.
• Inspector General Begg highlighted significant vulnerabilities in HUD’s fraud detection efforts, particularly in rental assistance and its Federal Housing Administration loan programs. Many Democratic members questioned the legitimacy and authority of the Department of Government Efficiency (DOGE) task force operating within HUD.
Why it matters: The Trump administration has tasked HUD and other agencies with making appropriate cuts to their budgets and personnel rolls.
What’s next: MBA will continue to advocate for HUD to have the personnel and materials the agency needs to implement the programs affecting MBA member customers.
For more information, please contact Madisyn Rhone at (202) 557-2741 or Rachel Kelley at (202) 557- 2816.
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:
• Loan Level Accounting – April 16
• Administrative Law Changes, The CFPB, and the Impact on Mortgage Finance – April 16
• Social Media Compliance: Identifying Potential RESPA Violations in Digital Advertising – April 22
• Building Efficiencies into the Mortgage Lending Workflow – April 23
• Key Federal Regulations and Emerging Regulatory Trends for Lead Generation – April 29
• Cybersecurity in Mortgage, Part I: Review of Recent Trends and the Current Landscape – May 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.
