Advocacy Update: Recap–MAA Town Hall on Trump Administration Updates, MBA Legislative Priorities, and #MBANAC25
Recap: MAA Town Hall on Trump Administration Updates, MBA’s Legislative Priorities, and #MBANAC25
On Thursday, MBA President and CEO Bob Broeksmit, CMB, Bill Killmer, SVP of Legislative & Political Affairs, and members of MBA’s lobbying and policy teams hosted a Mortgage Action Alliance (MAA) webinar on the latest developments in the single-family and commercial/multifamily arenas under the Trump administration and MBA’s ongoing response to them.
• More than 650 attendees received intel on what is happening and how MBA is engaging with the Trump Administration on its policy priorities, staffing plans, and potential next steps at the Federal Housing Administration (FHA) and Ginnie Mae (and the Department of Housing and Urban Development (HUD) as a whole), the Consumer Financial Protection Bureau (CFPB), and more.
• Broeksmit highlighted MBA’s recent successes in advocating on behalf of members’ interests, including the swift response to ensure government lending programs were excluded from a January federal spending freeze, and getting the CFPB to clarify its intent to continue to publish APOR data every Thursday amidst its ongoing pause of all activities.
Go deeper: Attendees also learned of the top priorities and issues to be covered at MBA’s upcoming National Advocacy Conference (NAC), taking place April 8-9 in Washington, D.C., including the potential for GSE release, trigger leads, housing tax policy, legislation to increase housing supply, property insurance, and more. Register for NAC today.
What’s next: MBA is monitoring the ongoing developments at the federal agencies and is engaging with the Trump administration to better understand the review of these agencies’ activities and future priorities. MBA and MAA plan to host additional Town Hall webinars as needed and/or as developments arise.
For more information, please contact Bill Killmer at (202) 557- 2736 or Pete Mills at (202) 557- 2878.
Combined McKernan, Pulte Senate Committee Confirmation Hearing Set for This Week
The Senate Committee on Banking, Housing, and Urban Affairs is set to hold a confirmation hearing Thursday on a slate of Trump administration nominees, including Jonathan McKernan to serve as the Director of the CFPB and Bill Pulte to serve as the Director of the Federal Housing Finance Agency (FHFA).
• McKernan was most recently a member of the Board of Directors of the Federal Deposit Insurance Corporation (FDIC). He also has deep housing finance experience from his past work at FHFA and Treasury Department – and during his work in the Senate. Until McKernan is confirmed by the full Senate, the agency will continue to be led by Acting Director Russell Vought, who also serves as the now fully confirmed Director of the Office of Management and Budget (OMB).
• Pulte’s experience includes being the CEO of the housing-focused investment firm Pulte Capital Partners and serving on the board of directors of Pulte Homes.
What they’re saying: See MBA President and CEO Bob Broeksmit’s press statement last week on McKernan’s nomination, and his press statement on Pulte after his nomination in January.
MBA last month also endorsed Pulte in a letter sent to Senate Banking Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA), stating, “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.
What’s next: Following Thursday’s hearing, MBA will urge Senate leaders to schedule a confirmation floor vote on them both as soon as possible.
For more information, please contact George Rogers at (202) 557-2816 or Ethan Saxon at (202) 557-2913.
President Trump Issues Executive Order Limiting Independent Agencies
On Tuesday, President Trump issued an executive order (EO), “Ensuring Accountability for All Agencies,” that curbs the ability of independent agencies to act independently.
• Under the order, independent agencies are bound by the legal interpretations of the President and the Attorney General. An independent agency may not issue regulations, guidance, or take positions in litigation unless they are authorized to do so in writing by the President or Attorney General.
Why it matters: This order will give the President and Attorney General review and approval authority over rulemaking and spending by independent agencies. This order covers independent agencies, including the CFPB, FDIC, FHFA, Federal Trade Commission (FTC), Securities and Exchange Commission (SEC), and the Office of the Comptroller of the Currency (OCC). The order exempts the Federal Reserve, except as it relates to the supervision and regulation of financial institutions.
Go deeper: Going forward, the affected agencies must submit all proposed and final rules to OMB’s Office of Information and Regulatory Affairs (OIRA) for approval. OMB Director Russell Vought – who is also CFPB Acting Director – has the authority to adjust spending by the agency. While “independent” agencies have had their independence narrowed by the Supreme Court in recent years – notably both FHFA and CFPB directors now serve at the pleasure of President – the EO provides OMB with further control over these agencies.
• Notably, on Wednesday, Mark Calabria, who was FHFA Director during President Trump’s first term, made it known that he will be starting at the OMB and will be on detail to the CFPB until Bureau Director nominee Jonathan McKernan is confirmed for a five-year term.
What’s next: MBA will track the implementation of this order and keep members informed of any updates.
For more information, please contact Justin Wiseman at (202) 557-2854 or Alisha Sears at (202) 557- 2930.
House and Senate Begin Budget Reconciliation Process
Recently, the House and Senate Budget Committees held markups of two different/respective budget resolutions. And Friday, the full Senate passed its budget resolution instrument (Senate Concurrent Resolution 7) by a largely party-line vote of 52-48.
• The Senate Budget Committee’s narrower work product passed that panel on February 13 by a party line vote of 11-10, with a framework of spending and savings provisions affecting border security, national defense, and energy policy included.
• Under the Senate plan, there would be a second budget resolution considered later in the year on tax policies impacting economic growth and the expiring 2017 Tax Cuts and Jobs Act (TCJA) provisions.
• In contrast, the House Budget Committee took a broader approach and reported one resolution containing a framework for tax, border and national security, and energy policies (and many other provisions). The House resolution (House Concurrent Resolution 14) cleared the panel on February 14 by a party-line vote of 21-16.
Summaries of the House and Senate Budget Committee markups can be found here and here.
Why it matters: Budget resolutions are internal guideposts for Congress and its work on revenue-related items – but do not have the force of law. An identical budget resolution passed by both the House and Senate – particularly when one party controls the White House and both chambers of Congress – unlocks the “reconciliation process.” Broadly speaking, that process involves detailed instructions and targets given to the various congressional committees to report changes in law that accomplish the savings and spending targets set out within a budget resolution.
• Go deeper: Simply stated, reconciliation bills (considered and passed separately, but informed by the budget resolution framework) have the advantage of requiring only a simple majority to pass the Senate, rather than the 60-vote supermajority normally required.
At the time of this writing on Friday, Feb. 21, the House is expected to seek to adopt its broader (“one big, beautiful bill”) budget resolution on the floor soon. If and when full House passage of a resolution occurs, finding consensus on the dueling House and Senate GOP leadership approaches – despite President Trump’s endorsement of the House approach earlier this week – may prove difficult given their variance in scope. If the House and Senate cannot agree to identical budget resolutions, the remaining alternative would be to attempt to pass a set of smaller bills on a bipartisan basis (ultimately requiring 60 votes in the Senate).
What’s next: Once/if a pathway on a budget resolution and reconciliation becomes clear, the baseline congressional tax policy debate on the TCJA provisions will begin in earnest. MBA will continue to actively engage with a bipartisan set of House and Senate leaders and tax writers – and the Trump administration – on the real estate finance-related items identified and prioritized by MBA’s “blue-ribbon” Tax Task Force.
For more information, please contact George Rogers at (202) 557-2797, Madisyn Rhone at (202) 557-2797, Ethan Saxon at (202) 557-2913, or Bill Killmer at (202) 557-2736.
Maryland Regulator Extends Compliance Date for Trust Licensing to July 6
On Tuesday, the Maryland Office of Financial Regulation (OFR) issued guidance that delayed until July 6, 2025, the enforcement date of its requirement for licensing of trusts. OFR’s mandates were announced in January and were made to facilitate compliance with the state Appellate Court’s April 2024 ruling in the case of the Estate of Brown v. Ward.
However, the policy has raised urgent issues for entities involved in the secondary mortgage market because OFR’s interpretation significantly (and unnecessarily) expanded on the Court’s opinion to include mortgage trusts.
• The delay is the result of work done by an MBA-led coalition that includes the Maryland Mortgage Bankers and Brokers Association.
• The legislation would create the necessary licensing exemptions to state law and also create a one-year study commission to review the issue and make recommendations to the Legislature.
• The industry coalition submitted a comment letter to OFR that strongly encouraged it to rescind its guidance and regulations.
Why it matters: Initially, OFR had delayed enforcement of trust licensing until April 10, 2025, but following introduction of these bills, it further extended that implementation date to provide greater opportunity for the Legislature to resolve the issue. The new date is 90 days following the end of this year’s legislation session. As stated in its guidance, OFR’s expressed hope is “to ensure the continued availability of mortgage loans for Maryland consumers.”
What’s next: MBA and MMBBA will continue to collaborate with industry partners in achieving swift passage and enactment of the legislation.
For more information, please contact William Kooper at (202) 557-2737 and Justin Wiseman (202) 557-2854.
MBA, State Associations Respond to California Proposed Rules to Regulate Auto Decision Tech & Cybersecurity
On Wednesday, MBA, along with the California MBA and California Bankers Association, submitted joint comments to the California Privacy Protection Agency (CPPA) on its proposed rule regarding cybersecurity audits, risk assessments, and automated decision-making technology (ADMT).
• The letter asked the CPPA to clarify that the proposed rule does not apply to decisions made or facilitated involving data that is subject to the Gramm-Leach-Bliley Act (GLBA) or the Fair Credit Reporting Act (FCRA) exemption under the California Privacy Rights Act.
Go deeper: Data subject to these laws are exempt from regulation by the CPPA and should similarly not be regulated under the proposed rule. Additionally, the associations asked the CPPA to state that compliance with existing federal and state statutes and regulations constitutes “reasonable security procedures and practices appropriate to the nature of the information to protection the information” for purposes of the data breach private right of action.
Why it matters: The mortgage industry relies on decades-old algorithmic-based technology developed or authorized by the federal government, including automated underwriting systems and credit scoring models, that could be covered by the CPPA regulations. However, the mortgage industry is already highly regulated and subject to requirements that ensure safety and fairness in lending. Regulating these core systems and allowing consumers to opt-out of their use will make it difficult to manually underwrite loans and may ultimately increase the cost of credit.
What’s next: This year, many states introduced legislation aimed at regulating artificial intelligence (AI). Last year, Colorado became the first state to enact an AI law with SB 24-205, Consumer Protections for Artificial Intelligence. MBA continues to work with its state partners on AI legislation. MBA will assist California Mortgage Bankers Association with the CPPA proposed rules and any further regulation.
For more information, please visit the MBA resource center at mba.org/stateai or contact Liz Facemire (202) 557-2870 or Gabe Acosta (202) 557-2811.
WATCH: mPower Moments: On the Value of Advocacy with Nanci Weissgold, MBA MORPAC Chair and Partner at Alston & Bird
mPower Founder Marcia M. Davies sits down with Nanci Weissgold, Chair of the Mortgage Bankers Association Political Action Committee (MORPAC) and Partner at Alston & Bird, for an in-depth conversation on her career.
Go deeper: Weissgold discusses her role as MORPAC Chair and how she has been able to use her expertise in relationship building to increase MORPAC’s reach within the industry, buttressing MBA’s efforts on Capitol Hill. She also discusses the importance of self-evaluation and the power of networking.
What’s next: 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 Power of Your Handshake: Turning First Impressions into Content for Social – Feb. 25
• Mastering Compliance and Efficiency with Digital Reverifications – March 4
• Drilling into Mortgage Accounting – April 9
• AI Voice Agents and Use Cases for Mortgage Lending – April 10
• Tech Trends Shaping the Future of Mortgage Lending – May 13
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.
