MBA Advocacy Update: 119th Congress Sworn In; FHA Adopts URLA for Title 1 Programs; MORPAC and MAA Leadership News
MBA’s thoughts and prayers go out to member companies and their employees, families, and customers, as well as all those affected by the tragic wildfires in Southern California. Our disaster recovery resource page contains important information for members and affected families: Click here.
119th Congress Sworn In; Trump Cabinet Senate Confirmation Hearings on Tap
The U.S. House of Representatives and Senate reconvened to formally kick off the 119th Congress, with Republicans holding narrow majorities in both Chambers. Speaker of the House Mike Johnson (R-LA) was reelected by a razor-thin margin, and Senator John Thune officially took the helm as Senate Majority Leader following his win in the Senate GOP leadership race in November.
• A Trump administration and Republican control of both chambers of Congress could lead to sweeping attempts at changes to regulatory and legislative policy in 2025 and beyond, from a major tax policy debate, to increased interest in and exit from conservatorship by the housing GSEs (Fannie Mae and Freddie Mac), and new leadership at the Department of Housing and Urban Development (HUD), the Consumer Financial Protection Bureau (CFPB), Federal Housing Finance Agency (FHFA), and Treasury, among other key regulatory agencies.
Go deeper: MBA will continue to monitor and update members on any important organizing developments – in both the House and Senate – and on both sides of the political aisle. The rosters of several key committees that have jurisdiction over the single-family and commercial/multifamily issues of most relevance to our members have been finalized.
• See House and Senate Committee rosters.
• Senate committee hearings will begin next week – and continue in the following weeks – for President-elect Donald Trump’s cabinet picks, including on January 16 for Secretary of the Treasury Nominee Scott Bessent (Senate Finance Committee) and HUD Secretary Nominee Scott Turner (Senate Committee on Banking, Housing, and Urban Affairs).
What’s next: With 12 new Senators and 66 freshmen lawmakers in the House, MBA’s National Advocacy Conference (NAC) is members’ best upcoming opportunity to ensure their voices are heard when they meet with policymakers and elected officials in Washington, D.C., to discuss key industry policy priorities. Register early and save.
For more information, please contact Bill Killmer at (202) 557-2936, Ethan Saxon at (202) 557-2913, George Rogers at (202) 557-2797, and Madisyn Rhone at (202) 557-2741.
FHA Adopts Uniform Residential Loan Application for Title I Programs
On Thursday, the Federal Housing Administration (FHA) published Title I Letter (TIL) TIL-489, announcing the adoption of the Uniform Residential Loan Application (URLA) for Title I Loan Programs.
• The letter replaces forms HUD-56001 for Title I Property Improvement and HUD-56001-MH for Title I Manufactured Home loans with the industry-standard URLA (Fannie Mae Form 1003/Freddie Mac Form 65). It also introduces the new HUD Addendum for Title I Loans (form HUD-92900-TI).
• MBA submitted comments last month supporting the updates. MBA also made several additional recommendations designed to attract greater lender participation by creating more consistency between Title I and the more common Title II loans, teeing these matters up for the new HUD Administration in 2025.
Why it matters: These changes aim to simplify processes, reduce costs, and expand financing options for manufactured homes and vacant lots.
What’s next: While these provisions can be implemented immediately, they are mandatory for case numbers issued on or after May 8, 2025. These updates will be incorporated into a future revision of the Single-Family Housing Policy Handbook 4000.1. MBA will work with the Trump administration to identify further Title I loan program improvements.
For more information, please contact John McMullen, AMP, at (202) 557-2706.
MBA Meets with FHFA on UDAP Advisory Bulletin
MBA recently met with staff from FHFA’s Division of Public Interest Examination (DPIE) to discuss our significant concerns regarding its advisory bulletin on the GSE UDAP compliance and its implications for seller/servicers.
At the end of November 2024, FHFA issued Advisory Bulletin 2024-06: “Regulated Entity Unfair or Deceptive Acts of Practices Compliance,” requiring the GSEs to certify compliance with Unfair or Deceptive Acts or Practices (UDAP) laws in the future.
FHFA’s Advisory Bulletin provides a framework for addressing UDAP under Section 5 of the FTC Act, particularly in the context of the activities of the GSEs and the Federal Home Loan Banks (FHLBanks).
• The discussion focused on the Bulletin’s creation of a GSE duty to supervise sellers and third-party vendors for consumer law violations, potential liability concerns for seller/servicers, and the linkage between UDAP and fair lending laws.
Go deeper: The guidance addresses potential direct and vicarious liability, highlighting that the regulated entities are responsible for UDAP violations by employees, agents, or third parties if they knew or should have known about the conduct. The bulletin also details how the enterprises and FHLBs can identify and mitigate risks associated with unfair acts and urges the regulated entities to establish clear policies and procedures.
Why it matters: MBA is deeply concerned because the bulletin reads as an attempt to set up the GSEs as consumer finance compliance regulators of their seller/servicers in a fashion that exceeds their current role and is duplicative of federal and state oversight regulatory of UDAPs. It also could carry significant repurchase risk given the GSEs’ “compliance with laws” representation.
What’s next: MBA concluded the discussion by making clear that this is the beginning of a conversation with follow-up to come. FHFA is receptive to holding larger stakeholder calls to communicate their intentions in applying the bulletin, and MBA continue to follow up with the new FHFA leadership in the coming weeks.
For more information, please contact Justin Wiseman at (202) 557-2854.
FHA Publishes Servicing Defect Taxonomy, First Edition
On Tuesday, FHA, after much anticipation and deliberation, published Mortgagee Letter (ML) 2025-01, Federal Housing Administration Defect Taxonomy Updates for Servicing Loan Reviews.
• This ML updates Appendix 8.0 – FHA Defect Taxonomy in the Single-Family Housing Policy Handbook 4000.1 to incorporate defect areas focused on Title II servicing loan reviews and revises part of the Defect Taxonomy to apply to both underwriting and servicing. Currently, FHA’s Defect Taxonomy only includes guidance applicable to Title II underwriting loan reviews. MBA has commented on the previous version of the Defect Taxonomy.
Why it matters: A Defect Taxonomy is used by FHA to identify and address loan-level defects or noncompliance with FHA’s Single-Family Housing policies and determines corresponding remedies.
Go deeper: MBA appreciates FHA’s efforts – through two rounds of the Drafting Table – to craft a taxonomy that provides greater clarity and predictability to loan level reviews. While some of these updates may fall short of our August 2024 recommendations, including a request to create objective standards to identify material defects, MBA recognizes that servicing is a complicated process with evolving risks to the borrower and FHA over a 30-year loan life cycle. MBA looks forward to continuing the iterative process to improve the taxonomy for program participants.
What’s next: FHA’s new policy is effective for loan reviews initiated on or after January 15, 2025.
For more information, contact Brendan Kelleher at (202) 557-2779.
MORPAC and MAA Appoint New Leadership
Last Wednesday, MBA’s Political Action Committee (MORPAC) and the Mortgage Action Alliance (MAA) appointed new leadership for the 2025-2026 election cycle.
Nanci Weissgold, Partner and Co-Chair of the Alston and Bird law firm’s Financial Services Group was appointed Chair of MORPAC, and Bill Nelson, Executive Vice President, Secondary and Mortgage Operations of Standard Mortgage Corporation, was appointed MAA Chair. Both individuals exemplify industry leadership and display commitment to expanding the reach of MBA’s political advocacy efforts.
Why it matters: These volunteer-based chairs of MBA’s Advocacy programs, including MORPAC and MAA, sit on MBA’s Board of Directors and serve as a liaison between membership and politics. The goal for these positions is to grow industry engagement on Capitol Hill and in state capitals across the country ensuring the successful pursuit of our industry’s legislative priorities.
What’s next: MBA staff will work with the MORPAC and MAA Steering Committee chairs and at-large membership to meet/exceed advocacy goals, all while maintaining MBA’s political “seat at the table.”
For more information, please contact Jamey Lynch, AMP at (202) 557-2818.
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:
• Managing Rising Insurance Risks in Commercial Lending – Jan. 14
• New Entrants in the Mortgage Industry and Their Winning Strategies – Jan. 16
• Fundamentals of Commercial Insurance Issues and Problems – Jan. 28
• Turning Data into Action: Enhancing Recruiting and Solving Loan Officer Performance Challenges – Feb. 4
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.
