Advocacy Update: MBA Holds GSE Briefing on Capitol Hill; FHFA Nominee Pulte Support Letter, More
MBA Responds Swiftly to Exclude Government Lending Programs from Federal Spending Freeze Memo
On Tuesday, MBA staff sprang to action following a Monday night memo from the Office of Management and Budget (OMB) to federal agencies that ordered a pause to grants and loans disbursed by the federal government.
• By late Tuesday, the key housing agencies had issued bulletins clarifying that their programs would not be impacted by the freeze. Later that evening, in response to a challenge from other impacted groups, a federal judge temporarily halted the order for one week, and the White House on Wednesday night ultimately said the OMB memo was rescinded.
MBA working for you: Key staff learned of the memo early Tuesday morning and reached out immediately to OMB and the federal housing agencies – and our congressional allies – requesting clear assurance that the directive did not apply to the single family and multifamily loan guarantee programs at the Federal Housing Administration (FHA), Department of Veterans Affairs (VA), and the Rural Housing Service (RHS) at the Department of Agriculture (USDA).
A press statement from MBA President and CEO Bob Broeksmit, CMB, echoed the staff’s urgent calls for clarity and exclusion.
• As a result of MBA’s urgent requests, FHA, the VA, and Ginnie Mae released memos clarifying that OMB’s directive did not apply to single-family federal grants, loans, insurance, and loan guarantees. MBA staff continued to push FHA to extend its bulletin to the multifamily program and for USDA to issue similar clarity for RHS loans up until the matter was resolved following Wednesday night’s recission.
What’s next: MBA is monitoring for any updated guidance from the Trump administration on this matter and will continue to urge them to avoid making any moves that disrupt the flow of lending to the single-family and multifamily housing markets.
For more information, please contact Pete Mills at (202) 557- 2878 or Bill Killmer at (202) 557- 2736.
MBA Holds Briefing on Potential for GSE Next Steps
On Thursday, MBA held a briefing at the U.S. Capitol Visitors Center for House and Senate staffers to discuss the potential for next steps by Congress and the Trump administration on key secondary mortgage market policies – including the potential for a release from conservatorship for the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac.
Go deeper: The briefing offered MBA’s policy experts the opportunity to address (and field questions from) a cross-section of congressional staffers on the topic – many of whom were not directly engaged on GSE issues in 2008 (or since). MBA’s presentation deck for the briefing session can be found here.
Why it matters: As President Donald Trump’s Director-designate for the Federal Housing Finance Agency (FHFA), Bill Pulte, if confirmed, would become the next conservator of the GSEs, and, as regulator, be charged with maintaining the safety and soundness of all three housing-related GSEs (including the Federal Home Loan Bank System) for the benefit of American renters and homeowners alike. He could also potentially be tasked with working with the Trump Treasury Department and Congress to chart a path to an exit from conservatorship for Fannie and Freddie.
What’s next: MBA will continue to advocate aggressively that any release of the GSEs avoid market disruption by focusing critical core principles developed by MBA’s Board Task Force, including an explicit, “fully-paid-for” government guarantee on the GSE’s mortgage-backed securities and regulatory mandates for FHFA to maintain a level playing for all lenders regardless of size or business model.
For more information, please contact Bill Killmer at (202) 557-2736, Mike Fratantoni at (202) 557-2935, or Sasha Hewlett at (202) 557-2805.
MBA Backs FHFA Nominee Bill Pulte
On Monday, Bill Pulte, President Trump’s nominee to lead FHFA, picked up MBA’s endorsement in a letter sent to Senate Banking Committee leaders.
“We believe he brings a wealth of real world, private sector experience to this role at a critical time for the housing Government Sponsored Enterprises (GSEs),” wrote MBA’s Broeksmit and current MBA Chair Laura Escobar to Senate Banking Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA).
The committee’s other individual members – on both sides of the political aisle – were also copied.
Go deeper: The letter from Escobar and Broeksmit also pointed to Pulte’s experience as CEO of the housing-focused investment firm Pulte Capital Partners and his service on the board of directors of Pulte Homes.
“Mr. Pulte has also shown a deep dedication to community development by founding the non-profit Blight Authority,” they added, saying the group had been “instrumental” in clearing blighted homes in Detroit, Pontiac (MI) and St. Louis.
What’s next: MBA’s letter urged the Senate Banking Committee to quickly schedule a hearing to examine Mr. Pulte’s credentials – and swiftly and favorably report his nomination to the full Senate for a confirmation floor vote. Chairman Scott is expected to schedule a nomination hearing for Pulte in the coming weeks. Should his nomination clear the Banking panel by majority vote, Pulte’s full Senate nomination vote would most likely not take place until the spring.
For more information, please contact Bill Killmer at (202) 557-2736 or Pete Mills at (202) 557-2878.
Scott Bessent Confirmed as Treasury Secretary with Bipartisan Support
On Monday, the Senate voted to confirm Scott Bessent as the 79th Treasury Secretary by a vote of 68-29. Secretary Bessent has said his top priority will be extending the 2017 Tax Cuts and Jobs Act (TCJA).
• Bessent formerly served as CEO and Chief Investment Officer of Key Square Capital Management, a global hedge fund focused on macro investing. Bessent also has taught economic history as an adjunct professor at Yale University. He is a long-time advocate, supporter, and mentor of financial literacy and education programs.
What they’re saying: In a press statement following his confirmation, MBA’s Broeksmit said, “MBA will work with Treasury and Congress to help pass legislation that extends key, expiring provisions of the Tax Cuts and Jobs Act, particularly those that impact consumers and support continued investment in housing and communities.”
He added, “MBA is also looking forward to engaging with Secretary Bessent and his staff, and with the Federal Housing Finance Agency and Congress, to develop a thoughtful plan to end the conservatorships of Fannie Mae and Freddie Mac (GSEs) in a way that avoids any market disruption or increased costs for borrowers. We look forward to hearing more from Secretary Bessent on his plans for the GSEs, and we stress that any release must include an explicit federal backstop of the GSEs’ mortgage-backed securities to protect both consumers and our housing finance system.”
Why it matters: Bessent will play a pivotal role on many of MBA’s key issues, including tax policy, utilizing Opportunity Zones and other tax incentives for affordable housing, responsible release of the GSEs from conservatorship, capital rules, and other financial regulations, as well as chairing the interagency Financial Stability Oversight Council (FSOC).
Go deeper: As Treasury Secretary, Bessent will have to work with the Congress to get the debt limit extended. The Treasury Department under his predecessor Secretary Yellen had already begun using “extraordinary measures” to continue paying the nation’s bills.
• The capacity of the extraordinary measures (e.g., redeeming of a portion of the investments held by the Civil Service Retirement and Disability Fund – which subsequently will be made whole after the debt limit is extended) likely will run out before the summer.
Bessent also has discussed making a priority of issues such as maintaining a strong economy, financial regulatory reform, trade policies, protecting financial infrastructure, cryptocurrency, and economic competitiveness with China.
What’s next: MBA will begin to work with Secretary Bessent and his emerging team on issues important to tax policy and real estate finance.
For more information, please contact George Rogers at (202) 557-2797 or Ethan Saxon at (202) 557-2913.
MBA Requests Delay of Nonbank Registry Rule Following Trump Regulatory Freeze
MBA recently sent a letter to the Consumer Financial Protection Bureau (CFPB or Bureau) urging it to take immediate action to halt any further work on the CFPB’s Nonbank Registration Regulation issued on June 3, 2024 (the so-called Repeat Offender Registry). MBA called on the CFPB to suspend processing of any data already collected and postpone the remaining compliance dates for smaller entities subject to the rule. The letter also states that the Bureau should suspend any collection requirements for large participants that have not yet filed orders or have relevant orders issued during the freeze.
• Any data received from large participants should be held without further action and the Bureau should not take any additional steps on the publication of orders or creation of the registry.
Why it matters: MBA’s letter is in response to the executive order released on January 20, 2025, that orders all executive agencies to “consider postponing for 60 days from the date of this the effective date for any rules that have been published in the Federal Register, or any rules that have been issued in any manner but have not taken effect, for the purpose of reviewing any questions of fact, law, and policy that the rules may raise.”
Go deeper: MBA has been very vocal about the short implementation timelines, insufficient showing of need for such a registry, and the duplicative regulatory burden on registrants that already have their information reported in the NMLS Consumer Access database. Given this, the delay makes sense and complies with the executive order’s core principle of allowing for the Administration to review open actions or uncompleted regulatory enactments.
What’s next: MBA will keep members informed about any updates and will continue to track implementation of this rule.
For more information, please contact Justin Wiseman at (202) 557-2854 or Alisha Sears at (202) 557- 2930.
Federal Reserve Keeps Rates Unchanged
The Federal Reserve held the federal funds rate at a target range of 4.25-4.50% on Wednesday.
Read MBA Chief Economist Mike Fratantoni’s commentary here.
For more information, please contact Mike Fratantoni at (202) 557-2935.
MBA and MMBBA Leading Efforts to Address Trust Licensing Issues in Maryland
Earlier this month, the Maryland Office of Financial Regulation (OFR) issued guidance and emergency regulations to facilitate compliance with the Maryland Appellate Court’s April 2024 ruling in the case of the Estate of Brown v. Ward. The guidance and regulations raise urgent issues for entities involved in the secondary mortgage market because OFR’s interpretation significantly expanded on the Court’s opinion.
Go deeper: The case was limited to an assignee of a home equity line of credit and whether it needed a license to have the legal authority to bring a foreclosure action. The Court agreed that a license was required, but the OFR unnecessarily expanded the regulation to cover purchasers/assignees of closed-end credit such as passive trusts of residential mortgages loans, which under the order would also need to be licensed. The requirement was effective January 10th, but OFR has delayed enforcement until April 10th.
Why it matters: MBA and the Maryland Mortgage Bankers and Brokers Association (MMBBA) last fall strongly urged the OFR not to expand its rules beyond the court’s decision and warned of the harmful and immediate consequences to the Maryland mortgage market and consumers. During the last two weeks, the industry’s predictions of detrimental impact to Maryland borrowers have proven prescient as purchasers of Maryland loans have announced that they will either raise costs for them or cease their purchases.
What’s next: MBA and MMBBA are leading a large industry coalition to develop comments on the emergency rule ahead of a February 7th due date, and to also introduce legislation to address these issues.
For more information, please contact William Kooper at (202) 557-2737.
NMLS Ombudsman Agenda Includes MBA’s Three Agenda Topics
On Thursday, the agenda for the Ombudsman meeting at the Nationwide Mortgage Licensing System (NMLS) Annual Conference was posted and includes MBA’s submitted topics: NMLS update timing concerns, Mortgage Call Report (MCR) verses individual state reporting requirements, and comments on the proposed MCR Version 7 (MCRV7).
Go deeper: MBA will first discuss a request for the earlier availability of NMLS regulator and staff announcements and updates before Ombudsman meetings rather than during the meetings. MBA members have requested more time to consider these developments to be better prepared to discuss them during these meetings.
• The first MCR-related topic addresses frustration by member companies who have made extraordinary efforts in recent years to comply with MCR modernization intended to streamline reporting nationwide without seeing any diminution in individual state reporting requirements outside the system.
• Lastly, MBA will speak to the recently proposed MCRV7, which includes additional servicing related fields which are intended to further align the MCR with the Mortgage Bankers Financial Performance Form (MBFRF). However, MBA’s review shows misalignment in definitions and other issues.
Why it matters: The NMLS Conference and Ombudsman meetings provide much needed forums for direct state regulator engagement. MBA and member companies have used these opportunities to effectively raise awareness and solve issues that have improved the system of state supervision.
• MBA believes that a core goal of NMLS modernization must be the reduction of divergent reporting requirements or the configuration of the system to accommodate any state-specific statutory reporting mandates. The current environment of state reporting and examination has become concerning with respect to duplication of effort and the need to work outside the system, which are driving higher compliance costs.
What’s next: MBA will work with members attending the conference to help highlight these concerns and report back on any developments.
For more information, please contact William Kooper at (202) 557-2737 or Liz Facemire (202) 557-2816.
Trump Administration Nominees Turner, Bessent, and Collins Headed to Senate Floor for Confirmation Votes
The Senate Finance Committee voted in favor of sending the nomination of Scott Bessent to be Treasury Secretary; the Senate Veterans’ Affairs Committee voted to advance Doug Collins to be Secretary of Veterans Affairs; and the Senate Banking Housing, and Urban Affairs voted to advance the nomination of Scott Turner to be Secretary of the Department of Housing and Urban Development (HUD). As of Jan. 27, Bessent was confirmed.
What they’re saying: In a press statement following Turner’s advancement, MBA President and CEO Bob Broeksmit, CMB, said, “MBA appreciates the importance being placed on Scott Turner’s nomination to serve as the next HUD Secretary and urges Senate leadership to schedule a floor vote on his confirmation as soon as possible.”
Broeksmit added, “Furthermore, FHA’s healthy financial position – with a capital reserve ratio more than five times the statutory requirement – presents an immediate opportunity for the Trump administration to reduce housing costs for low- to moderate-income Americans by reducing FHA mortgage insurance premiums.
Why it matters: Bessent, Turner, and Collins – if all confirmed by the full Senate – will play pivotal roles on many of MBA’s key issues, including macroeconomic tax policy, utilizing Opportunity Zones and other tax incentives for affordable housing, a responsible release of Fannie Mae and Freddie Mac (the housing GSEs) from conservatorship, capital rules, regulations and directives, and VA Home Loan Program origination and servicing policies.
Go deeper: The timing of Turner’s and Collins’ floor votes depends on a range of factors and could be held next week – or even later.
What’s next: MBA has and will continue to work with Senators on both sides of the aisle in support of the swift confirmations of Turner and Collins – so that the entire teams at Treasury, HUD, and VA can be individually nominated, confirmed, and begin working as soon as feasible.
For more information, please contact George Rogers at (202) 557-2797 or Ethan Saxon at (202) 557-2913.
MBA and State/Local Partners Join Broad Industry Call for Key Small Business Deduction Extension
Last week, MBA and 41 of our state/local mortgage banking association partners joined the Main Street Employers coalition letter in support of the permanent extension of Internal Revenue Code Section 199A, the small business “passthrough” deduction of up to 20% of Qualified Business Income (QBI).
• The coalition letter, which was signed by more than 230 small business organizations and addressed to the House and Senate authors of the 199A permanence legislation (Rep. Lloyd Smucker (R-PA) and Senator Steve Daines (R-MT)), calls for the proposal’s inclusion in any emerging GOP tax/reconciliation package.
Why it matters: Many of MBA’s independent mortgage banks and community banks are organized as “passthroughs,” (e.g., S Corps, LLCs, partnerships, etc.) Section 199A was enacted as part of the 2017 Tax Cuts and Jobs Act (TCJA) and intended to provide tax relief parity to small businesses – as compared to the TCJA’s permanent corporate rate reduction to 21% for C corporations.
Go deeper: MBA worked with the Treasury Department (in 2018 and beyond) to help ensure the bulk of our industry’s “passthrough” members would qualify for the QBI deduction at the time of the provision’s implementation.
Thanks to our state association partners and their level of engagement on this project, roughly 20% of this broad industry coalition’s letter signers represent the mortgage industry at the local, state, and national levels!
What’s next: MBA – and its blue-ribbon Tax Task Force – will continue to work with our Main Street Employers coalition partners to advocate for Section 199A permanence with the current Congress and key incoming Trump White House and Treasury officials.
For more information, please contact Bill Killmer at (202) 557-2736 and George Rogers at (202) 557-2797.
President Trump Executive Orders Impact HUD Energy, Flood Rules
Last Monday, President Donald Trump issued two Executive Orders (EOs) that impact significant rules from HUD. The Trump EOs repealed prior Administration Executive Orders that resulted in HUD issuing rules implementing Federal Flood Risk Management Standards (FFRMS) and mandating compliance with the current International Energy Conservation Code (IECC) on new single family and multifamily buildings financed by FHA. Both rules would significantly increase costs of affordable ownership and rental housing.
• The EOs could lead to withdrawal or significant changes to both the FFRMS Rule and the Energy Building Codes Rule.
Why it matters: MBA advocated against both of these Final Rules, as they add significant costs to development of new housing, and were published before appropriate tools were in place to implement them. The new EOs demonstrate intent to halt or repeal these rules.
What’s next: It is believed that HUD will have to publish guidance and new Federal Register notices to rescind or halt these rulemakings, which were finalized in April 2024. MBA will continue to advocate for their reversal, and for common sense proposals to replace them.
For more information, please contact Pete Mills at (202) 557- 2878 or Megan Booth at (202) 557-2740.
MBA Responds to VA’s Proposed API Integration and Compliance Updates
Last Tuesday, MBA submitted comments on the VA’s proposed rule regarding loan reporting requirements. The proposal mandates that lenders utilize an application programming interface (API) for reporting loans and remitting funding fees to the VA to obtain a (LGC).
• Additionally, lenders would use the API to provide required certifications and submit Veteran certifications. The proposed rule also outlines the criteria for determining partial or total loss of guaranty or insurance.
Go deeper: MBA’s comments support the VA’s efforts to modernize processes through API implementation but call for a sufficient implementation timeframe to ensure smooth integration for lenders. Additionally, MBA recommends maintaining a 60-day loan reporting timeframe, removing proposed late notice requirements for minor delays, and establishing clear criteria for auditing and enforcement actions.
Why it matters: The proposed rule introduces significant operational and compliance changes for lenders participating in the VA Loan Guaranty program.
What’s next: MBA will remain committed to collaborating with the VA to enhance operational efficiency while ensuring compliance and safeguarding stakeholders.
For more information, please contact Darnell Peterson at (202) 557-2922.
Ways and Means Committee Explores Tax Policy Priorities
On Wednesday, the House Ways and Means Committee held a “member day” hearing, allowing U.S. Representatives to present their tax policy priorities. The discussion included potential extensions of the TCJA, enhancements to the Low-Income Housing Tax Credit (LIHTC), and policies affecting housing affordability and real estate finance.
Why it matters:
• Many lawmakers stressed the importance of making the 199A pass-through deduction permanent, citing its value to small businesses, including real estate professionals.
• Bipartisan calls were made to expand LIHTC, underscoring its critical role in addressing housing supply shortages across rural, suburban, and urban markets.
• Key debates on clean energy tax credits, the estate tax, and the state and local tax (SALT) deduction cap also took place.
Go deeper: Read a complete summary of the hearing here.
What’s next: MBA will continue to advocate for the preservation of the 199A deduction, LIHTC enhancements, and all tax policies that support housing affordability and growth.
For more information, contact Bill Killmer at (202) 557-2936 or Madisyn Rhone at (202) 557-2741.
FHFA and GSEs Update Implementation Date for Credit Score Models and Reports Initiative
Last week, the Federal Housing Finance Agency (FHFA) and Fannie Mae and Freddie Mac (the GSEs) announced an update to the Enterprise Credit Score Models and Reports Initiative.
• The announcement revises the implementation date from fourth-quarter 2025 to a to-be-determined date for incorporating the new credit score model requirements into mortgage processes and implementing optional “bi-merge” credit reports. The trio stated that this update is being made in response to industry feedback and to better support market participants with this transition. You can find this update reflected in the GSEs’ Partner Playbook.
Why it matters: This is welcome news as MBA and other trades and stakeholders have consistently stressed that given the current status of this project, time needed for full analysis, and numerous unanswered questions, the Q4 2025 date was unfeasible. The implementation of the new credit score models, and a transition to bi-merge, has multiple and wide-ranging impacts that could further increase the costs of credit reporting services.
• A well-coordinated and appropriate execution strategy is needed to minimize disruption and ensure consumers do not bear the burden of higher costs. MBA continues to call on FHFA, HUD, and the GSEs to examine how their requirements expose lenders and consumers excessive price increases for credit reporting services.
What’s next: MBA will continue to work with incoming leadership at FHFA and other trade associations to establish a workable implementation plan that ensures that unintended consequences are mitigated and that costs, complexity, consumer impact, and policy implications are taken into consideration throughout this initiative.
For more information, please contact Sasha Hewlett at (202) 557-2805.
MBA Launches Training Program for Board Members
Last week, MBA announced the dates for a series of training programs geared towards senior executives and Board members at MBA member companies.
Why it matters: The series of 11 modules will help leadership teams and board members navigate the litany of risk management, policy, and compliance challenges that face every single-family mortgage lender, servicer, and vendor. Completion of the training will help strengthen governance, oversight, and demonstrate the investment in training as part of an organization’s risk management program.
What’s next: The first module, Basics of Board Fiduciary Duties and Ethics for Mortgage Lenders and Servicers, kicks off on February 7th. The series, which includes sessions covering fraud and cybersecurity, mortgage servicing rights, benchmarking and profitability, the compliance landscape and more, runs through the end of September.
For more information, please contact David Upbin at (202) 557-2931.
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:
• Turning Data into Action: Enhancing Recruiting and Solving Loan Officer Performance Challenges – Feb. 4
• RESPA at 50: Necessary Reforms to Modernize RESPA Section 8 – Feb. 5
• Recent Trends in Fair Lending and What to Expect with the Administration Change – Feb. 12
• Mastering Compliance and Efficiency with Digital Reverifications – March 4
• AI Voice Agents and Use Cases for Mortgage Lending – April 10
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.
