Advocacy Update: MBA Leaders Meet with Fed’s Bowman Ahead of Basel III Re-proposal; FHFA and FHA News; More
MBA, Industry Executives Meet with Key Regulators Ahead of Basel III Re-proposal
On Ahead of the anticipated Basel III “Endgame” re-proposal, MBA staff and members met with Federal Reserve Vice Chair for Supervision Michelle Bowman last Friday to discuss Basel III’s impact on the real estate lending industry and MBA’s recommended revisions.
• MBA stressed that banks play a critical role in the mortgage lending and servicing markets – both directly and indirectly by financing IMBs – and that the current capital rules keep banks from playing a larger role in these markets.
• The group highlighted the punitive 250% risk weight assigned to mortgage servicing assets (MSAs) as well as the unnecessary 25% cap on MSAs that a bank is allowed to include in Common Equity Tier 1 capital. These two provisions have caused significant migration of banks from the mortgage lending and servicing businesses.
• MBA also urged the regulators to reduce the 100% risk weight on warehouse lines of credit to 50%, or to otherwise align with the risk weight of the underlying collateral. A 50% risk weight would not only ensure alignment between the warehouse line and the underlying loans that collateralize the line (under current rules), but also ensure that banks have the capability to continue to provide the necessary funding and liquidity to nonbank lenders who help families attain their dream of homeownership by offering a larger share of mortgage lending and servicing activities.
Why it matters: The final Basel III regulatory framework will have an outsized effect on real estate finance for years to come. It is imperative that regulators calibrate the expected re-proposal correctly to encourage banks to participate fully in mortgage lending and servicing markets.
What’s next: MBA staff will continue to work with its members to engage federal banking regulators throughout the rulemaking process on Basel III. Member feedback is imperative to ensure the re-proposal is handled correctly. Please share any comments, questions, or thoughts regarding Basel III with MBA.
For more information, please contact Fran Mordi at (202) 577-2860.
FHFA Finalizes GSE Housing Goals for 2026-2028
On Tuesday, the Federal Housing Finance Agency (FHFA) published the final 2026–2028 housing goals for Fannie Mae and Freddie Mac (the GSEs). The goals, required by law, specify benchmark percentages of GSE purchases of single-family mortgages serving low- and very-low-income borrowers and other underserved populations, as well as benchmarks on the number of multifamily unit purchases for those same populations based on U.S. Census tracts.
• The housing goals help drive and quantify the GSEs’ efforts to achieve their mission of supporting liquidity for affordable homeownership. The final single-family benchmarks are set lower than those set for 2025 – 2027 and combine the current low-income census tracts home purchase subgoal and the minority census tracts home purchase subgoal into a single low-income areas home purchase subgoal.
• The multifamily goals remained unchanged from previous levels.
What they’re saying: In a press statement, MBA President and CEO Bob Broeksmit said, “MBA appreciates FHFA’s consideration of several recommendations outlined in our comment letter to support the GSEs’ mission of providing liquidity for affordable homeownership and rental housing over the next three years.”
Go deeper: MBA’s recommendations for the housing goals included lowering the single-family low-income refinance goal and retaining the recently implemented measurement buffers. MBA had serious concerns that the single-family low-income refinance goal may not be attainable due to its sensitivity to various market forces.
The Trump administration called on the Federal Reserve to lower interests rates, which would spur refinance activity, driving up the denominator for the low-income refinance goal calculation and driving the achieved percentage lower. The final rule reduces the single-family low-income refinance goal from the proposed 26 percent to 21 percent.
• FHFA did not retain the measurement buffers in the final rule, stating that they would be unnecessary given that the housing goals are set well below benchmark levels.
What’s next: MBA is reviewing the goals in greater detail and will continue to engage with FHFA and the GSEs on this and other critical housing issues.
For more information, please contact Sasha Hewlett at (202) 557-2805 or Megan Booth at (202) 557-2740.
FHA Updates Guidance Regarding the Application of Partial Payments for Borrowers in in Default
In response to MBA advocacy, the Federal Housing Administration (FHA) issued a waiver of language in section III.A.2.d.ii(A) of the Single Family Housing Policy Handbook 4000.1 (Handbook) that stated that the application of partial payments does not advance the initial Date of Default. FHA followed up the waiver with publication of FHA INFO 2025-59, which clarified that:
• The language waived from section III.A.2.d.ii(A) of the Handbook could be read as inconsistent with regulations defining how to calculate Date of Default, and the Department of Housing and Urban Development (HUD) will not enforce compliance with the waived provision;
• The auto-denials in EVARS associated with Date of Default have been turned off; and
• Mortgagees should consider prior extension requests related to advancing the Date of Default approved.
Why it matters: Over the summer, changes in HUD’s EVARS began auto-denying extensions based on a shift in how HUD calculated the Date of Default when borrowers make subsequent partial payments that do not fully cure the default.
• This created confusion and operational difficulties for servicers across the industry. MBA and its members raised these concerns with HUD, and both the waiver and FHA INFO 2025-59 reflect HUD’s responsiveness to industry feedback and the difficulties this policy change created for servicers.
What’s next: MBA will work with members to surface any subsequent issues that arise.
For more information, please contact Kait Hildner at (202) 557-2933.
Registration Discount for MBA’s Servicing Solutions Conference Ends January 6
On MBA members save $200 when they register by Tuesday, January 6 for MBA’s Servicing Solutions Conference and Expo, taking place February 16-19 at the Gaylord Texan in Dallas.
Why it matters: This conference is the industry’s premier event tailored to the interests of servicing professionals, with curated content, networking opportunities, and an expo hall featuring solutions providers. Registration rates increase after January 6th.
What’s next: Registered attendees will receive a personalized link to reserve their room at the Gaylord Texan at a discounted rate until January 16. Availability is limited.
For more information, please contact Meetings@mba.org.
Watch: On Developing a Successful Brand with Premier Mortgage Resources’ Mandi Feely Swain
mPower Founder Marcia M. Davies sits down with Mandi Feely Swain, Executive Vice President of Premier Mortgage Resources, to discuss her career journey and the importance of developing a personal and professional brand.
Go deeper: During this insightful interview, Mandi discusses the motivation for founding her company and how she finds fulfillment when working with others who are passionate about the homebuying process. Mandi also explains the importance of developing and maintaining a personal brand, and how it can increase your visibility within the industry and create new opportunities that could boost your own success within your company.
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:
• The High-Performance Manager: Proven Systems to Lead, Recruit, & Coach Winning Sales Teams – Jan. 20
• Decoding Customer Satisfaction and Loyalty: Key Insights from J.D. Power’s Latest Mortgage Studies – Jan. 21
• 1099 vs. W-2: Avoiding Costly Compliance Mistakes – Jan. 22
• 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
• Mortgage Accounting Webinar Series: Loan Accounting, Part I: Drilling into Mortgage Accounting – April 22
• Mortgage Accounting Webinar Series: Loan Accounting, Part II: Loan Level Accounting – April 29
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.
