MBA Advocacy Update: Trump Administration Nominees Turner, Bessent, and Collins Headed to Senate Floor for Confirmation Votes
Trump Administration Nominees Turner, Bessent, and Collins Headed to Senate Floor for Confirmation Votes
Last week, 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:
• Safeguarding Your Mortgage Business Against Costly Natural Disaster Risks and Attracting Opportunities – Jan. 29
• 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
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.
