Advocacy Update: Senate Unanimously Passes MBA-Supported Trigger Leads Bill; Heading to President Trump for Enactment
Senate Passes MBA-Supported Trigger Leads Bill; Heads to President Trump’s Desk for Enactment
On Saturday evening, the full U.S. Senate passed the Homebuyers Privacy Protection Act of 2025 (H.R. 2808) by unanimous consent.
• The final passage of this bill is a significant MBA advocacy win, one that brings to conclusion a multi-year effort to curb the abusive use of mortgage credit leads while preserving their value in appropriately limited circumstances.
• MBA thanks the thousands of Mortgage Action Alliance (MAA) members who participated in calls to action this year during the 119th Congress – and the prior Congress as well. YOUR VOICE mattered as MBA led a diverse coalition that pushed leaders in the House and Senate to ultimately reach a consensus after the proposal was tweaked at various points in the legislative process – and then harmonized and passed by both chambers.
• A big “shout-out” is also due to our trigger leads reform champions – Senators Bill Hagerty (R-TN) and Jack Reed (D-RI) and Reps. John Rose (R-TN) and Ritchie Torres (D-NY) – for their tireless efforts to steer this MBA-supported proposal across the finish line.
What they’re saying: In a press statement, MBA President and CEO Bob Broeksmit, CMB, said, “MBA celebrates the final passage of this important bill — a long-overdue measure that will finally put an end to the abusive use of mortgage credit trigger leads.
“This new law will help protect consumers from the barrage of unwanted calls, texts, and emails they too often receive immediately after applying for a mortgage. It marks a major victory for borrowers and will create a more efficient, responsible, and respectful home buying process.”
Why it matters: Following six months after enactment when President Donald Trump signs the legislation into law, trigger leads will be permissible under the Fair Credit Re porting Act only in limited circumstances during a real estate transaction and only to provide a firm offer of credit.
• A credit reporting agency (“CRA”) would not be able to furnish a trigger lead to a third party unless the third party has certified to the CRA that either:
• The consumer explicitly consents to such solicitations;
• The third party has originated the current residential mortgage loan of the consumer;
• The third party is the servicer of the current residential mortgage loan of the consumer; or
The third party is an insured depository institution or insured credit union and holds a current account for the consumer.
Go deeper: This proposal would never have emerged if not for the inspirational leadership of past RESBOG Chair, the late Chrissi Rhea, who led MBA’s internal policy discussions to make trigger leads reform a top association priority, helping it go from being a draft concept to public law in a matter of just a few years. To all of Chrissi’s past colleagues and friends, we couldn’t have done this without her!
What’s next: MBA looks forward to President Trump signing the bill into law quickly and will work to ensure a seamless implementation when it goes into effect in six months.
For more information, please contact George Rogers at (202) 557-2797, Ethan Saxon at (202) 557-2913, Rachel Kelley at (202) 557-2816 and/or Madisyn Rhone at (202) 557-2741.
Last week, MBA President and CEO Bob Broeksmit, CMB, penned two blog posts on two major advocacy initiatives (and wins): MBA’s work with FHFA and the GSEs on credit score modernization, and President Trump signing the VA Home Loan Program Reform Act into law. Read them here and here.
Federal Reserve Keeps Rates Unchanged
The Federal Reserve held the federal funds rate at a target range of 4.25-4.50% on Wednesday.
Why it matters: The Committee emphasized that it will “carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2% objective.”
What they are saying: “Unfortunately for the housing and mortgage markets, the Fed’s actions with respect to short-term rates are likely to have little impact on longer-term rates, including mortgage rates,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “MBA’s forecast is for 30-year fixed mortgage rates to move just a little lower to perhaps 6.5% over the next year, as longer-term rates continue to be impacted by large deficits and debt and the growing issuance of Treasury securities to fund those deficits, which will likely keep mortgage rates near today’s level even as the Fed loosens monetary policy.”
Read more of Fratantoni’s commentary here.
For more information, please contact Mike Fratantoni at (202) 557-2935.
Senate Banking Committee Passes Comprehensive, Bipartisan “ROAD to Housing” Legislation
Following months of negotiations between senators on many individual housing-related measures, the full Senate Banking, Housing, and Urban Affairs Committee on Tuesday passed the Renewing Opportunity to the American Dream (“ROAD”) to Housing Act, by a bipartisan vote of 24-0.
• The text of the legislation can be found here and a section-by-section breakdown here. Additionally, a memo summarizing the markup is available here.
The legislation as reported to the Senate floor contains numerous bills and legislative text from each of the Banking Committee’s members as well as some off-committee Senators. It seeks to expand and preserve housing supply, improve housing affordability and access, and bolster the oversight of major federal housing programs.
What they’re saying: MBA President and CEO Bob Broeksmit, CMB, in a press statement said, “MBA applauds and supports the Senate Banking Committee’s favorable reporting of this significant package that will help make housing more affordable and available to households in both urban and rural communities across America. Many of the bill’s provisions will help to boost housing supply for both owning and renting, streamline federal housing program offerings, and make small-dollar mortgage lending more available to consumers.”
Broeksmit added, “Ahead of the proposal’s Senate floor consideration, we will continue to engage with Senators Scott and Warren to potentially refine and improve certain sections of the bill, including provisions dealing with lender liability, second appraisals, and targeted reforms to the Rural Housing Service program.”
Why it matters: Legislation that advances at the committee level by a 24-0 vote very often passes at least one house of Congress, if not eventually becoming law. In advance of the Banking Committee markup, Bill Killmer, MBA’s SVP for Legislative and Political Affairs, sent a letter in support of the overall proposal and provided specific commentary on several key sections of the package, including:
• Rural Housing Service (RHS) program reforms that include vital IT upgrades, improved lending guidelines for Accessory Dwelling Units (ADUs), and the assumption of USDA/RHS loans;
• simplification/acceleration of National Environmental Protection Act (NEPA) reviews for small and infill housing projects;
• the study of incentives to encourage small dollar mortgage loan originations – including an evaluation of regulations limiting mall dollar loan “points and fees”;
• Federal Transit Administration (FTA) program guide changes designed to encourage more housing located near public transportation routes; and
• directing the Department of Housing and Urban Development (HUD) to develop “best practice” zoning and land-use frameworks to help communities identify and overcome barriers to housing development.
Go deeper: Section 705 of the ROAD to Housing bill codifies a set of specific appraisal process modifications that would amend the Truth in Lending Act (TILA) and impose potentially punitive penalties on lenders, while creating a de facto consumer right to a second appraisal (with costs to be borne by the creditor).
What’s next: MBA will continue working with Banking Committee Chair Tim Scott (R-SC), Ranking Member Elizabeth Warren (D-MA), and their staffs to attempt to refine and improve the bill’s lender liability, second appraisal, and RHS reform provisions prior to the ROAD to Housing Act’s floor consideration by the full Senate.
For more information, please contact George Rogers at (202) 557-2797 or Ethan Saxon at (202) 557-2913.
House and Senate Committees Report Conflicting HUD Appropriations Levels for Fiscal Year 2026
Last month, the Senate Committee on Appropriations filed its report for the Fiscal Year (FY) 2026 Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations Act, with significantly different funding and policy priorities than those reported previously by the House Committee on Appropriations. Overall, the Senate provided $73.3 billion for HUD while rejecting many of the major cuts to housing funding in the Trump administration’s $42.8 billion budget request. The House Appropriations Committee approved $67.7 billion. MBA sent a letter highlighting our members’ priorities for HUD programs, which can be found here.
The bottom line:
• For FHA, both the Senate and the House recommended $400 billion for loan guarantee authority and $160 million for administrative contract expenses, a $10 million increase for contract expenses above the FY25 enacted level.
• The Senate recommended $550 billion for Ginnie Mae’s commitment authority for FY26, continuing the FY25 level. However, the Senate provided $56 million for salaries and expenses, a $2 million increase over the FY25 level. While the House provided the same level of commitment authority, it provided only $54 million for administrative expenses and directed Ginnie Mae to limit spending on non-personnel services “such as conferences, training, and temporary service contracts to only that which is necessary to carry out mission critical activities.”
• The House provided only $299.4 million for HUD’s information technology fund that includes FHA’s mortgage insurance programs. The Senate provided $365 million, which is the amount requested by the President for FY26 and is an $18 million reduction in funding than what was provided for during FY25.
• The House did not provide any funding for housing counseling in FY26 while noting that the funds provided for FY25 had not yet been allocated. The Senate voted to allocate $57.5 million for housing counselling in FY26.
Go deeper: The Senate committee included a new report requirement to address the impact that rising insurance premiums may have on (1) the supply of new affordable housing, and (2) the financial sustainability of existing affordable housing as well as a separate GAO study on the effectiveness of the FHA Multifamily 221(d)(4) program to identify legislative and regulatory programmatic improvements that would expand program uptake.
The Senate committee also expressed concern regarding the risks “nonbank mortgage companies” pose and directed Ginnie Mae to provide a report detailing how it would react to stress on nonbank mortgage companies, including liquidity stress, protocols to identify viable servicers that could assume the portfolio of a failed nonbank mortgage company, and actions Ginnie Mae could take to prevent and minimize such risks.
• The House committee highlighted concerns regarding condominium safety and structural repairs noting that under current policy, condominium associations are not eligible for FHA-backed loans, even in cases where urgent structural repairs are needed to protect life and property. The committee “encourages the FHA to evaluate and prepare for the implementation of reforms related to expanding FHA eligibility to condominium associations, including the development of underwriting guidelines, financial oversight mechanisms, and consumer protections to support responsible lending to these types of borrowers.”
What’s next: Congress will need to reconcile and vote on a completed T-HUD funding measure before funding for all federal agencies expires on Sept. 30, 2025. It is unclear at this writing if congressional leaders will be able to pass free-standing appropriations bills rather than resorting to yet another Continuing Resolution or “CR” to avoid a government-wide shutdown beyond September.
For more information, please contact 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.
Key Treasury Nomination Advances Toward Future Senate Floor Vote
Last week, the Senate Finance Committee advanced President Trump’s pick for a top Treasury Department job overseeing domestic finance issues. In a 14-13 party-line vote, the committee approved Jonathan McKernan’s nomination to be Treasury’s Undersecretary for Domestic Finance.
• Finance Committee Chair Mike Crapo (R-ID) praised McKernan and said he would “bring back sound and balanced regulation to our financial system.” Democrats, meanwhile, opposed his nomination. Senator Ron Wyden (D-OR), the panel’s ranking member, said he was voting against McKernan over the Administration’s decision to allow the Department of Government Efficiency (DOGE) to access sensitive Treasury payment systems.
Go deeper: McKernan is a former FDIC board member who the White House tapped for the Undersecretary role at Treasury in May. He has been serving at the department since then as a top advisor to Treasury Secretary Scott Bessent – working on the Administration’s financial deregulatory efforts.
Why it matters: McKernan will play a key role on issues related to financial institutions/markets and fiscal service – including municipal debt finance and the housing GSEs – in his role as Undersecretary, if confirmed.
What’s next: McKernan’s nomination is likely to advance to a full Senate floor vote after the August congressional recess.
For more information, please contact Ethan Saxon at (202) 557-2913 and/or George Rogers at (202) 557-2797.
MBA Advocates for PPM Certification Clarifications
On Tuesday, MBA submitted a letter to the Department of Veterans Affairs (VA) regarding concerns over the new certification requirements under the VA’s Program Participant Management (PPM) system.
• The letter outlines recommendations to better align the PPM certification process with the VA Lender Handbook, particularly differentiating the requirements for supervised and non-supervised lenders.
Why it matters: The MBA-proposed changes will help ensure clearer compliance and reduce potential risks for lenders, ultimately benefiting the overall efficiency of the VA loan program.
What’s next: MBA will continue to work with the VA to finalize these recommendations and keep members informed about any updates.
For more information, please contact Darnell Peterson at (202) 557-2922.
MBA Hosts Condo Lending Summit to Address Barriers and Advance Solution
Recently, MBA held its 9th Condo Lending Summit at its Washington, D.C. headquarters, bringing together representatives from the VA, FHA, Fannie Mae and Freddie Mac (the GSEs), and industry experts to examine challenges and identify solutions related to condominium project eligibility standards.
Why it matters: Condominium financing plays a critical role in affordable housing supply, but overly rigid policies around project insurance, eligibility, and critical repair reviews continue to hinder borrower access and market liquidity.
Highlights from the Summit included:
• A focused FHA policy dialogue with HUD’s Merle Lewis on recent updates to FHA condominium lending policies, specifically project eligibility standards, Single-Unit Approval requirements, and insurance coverage guidelines.
• Insights from the VA’s Terry Rouch on navigating condo eligibility waivers and streamlining documentation to improve veteran borrower access.
• Moderated discussions on the GSE critical repairs framework, the operational impact of Fannie Mae’s Unavailable List, recent state legislation, and project litigation challenges.
What’s next: MBA will incorporate Summit feedback into ongoing engagement with FHFA, the GSEs, FHA, and VA, aiming to improve consistency and lender confidence in condo transactions. MBA is also preparing to submit an upcoming letter to FHFA urging revisions to the GSEs’ Critical Repairs guidelines.
For more information, please contact John McMullen, AMP at (202) 557- 2706 or Joel Kan at (202) 557-2951.
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:
• Combating Mortgage Fraud: Legal Duties to Prevent Fraud and Opportunities to Safeguard the System – Aug. 6
• Non-Agency Training Series: DSCR Loans – Aug. 12
• Freddie Mac Income Calculator: Deriving Precise Income with Speed – Aug. 13
• How Executives Use Social Media to Influence, Inspire, and Lead with Purpose – Aug. 19
• Non-Agency Training Series: Bank Statement Loans – Aug. 26
• Reverse Mortgages: State of Play – Aug. 27
• Benchmarking for Performance and the Performance Ratios Every Mortgage Banker Must Know – Sept. 3
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.
