Advocacy Update: MBA GSE Letter on Construction Lending Changes; McKernan Nomination Hearing; Advocacy in August
THIS WEEK: The Senate Banking Committee is scheduled to hold a legislative “markup” on a broad group of bipartisan housing proposals on Tuesday, July 29.
Last week, the Senate Appropriations Committee held a markup on its version of the Fiscal Year 2026 funding bill for the Department of Housing and Urban Development.
MBA will prepare an in-depth recap of these key Senate committee actions in greater detail.
MBA Urges the GSEs to Modernize Construction Lending Policies
MBA recently submitted a comment letter to Fannie Mae and Freddie Mac (the GSEs) that urges them to make policy enhancements to support lender participation and borrower access in construction and renovation lending.
Go deeper: The letter encourages the GSEs to:
• Create a pilot program permitting upfront securitization of Single-Close Construction-to-Permanent loans;
• Extend the credit documentation age from 12 to 18 months; and
• Lower the completion threshold to 50% for HomeStyle Renovation mortgages.
Why it matters: MBA believes these changes would reduce financing barriers, improve operational efficiency, and help address persistent housing supply and affordability challenges.
• Importantly, the letter reflects the advocacy priorities of MBA’s Residential Board of Governors (RESBOG), which has identified construction lending reform as a critical need for its members.
What’s next: MBA will continue engaging with the GSEs and stakeholders to advance these recommendations and support more innovation in construction lending.
For more information, please contact John McMullen, AMP, at (202) 557-2706.
Senate Finance Committee Holds Key Treasury Nomination Hearing for Jonathan McKernan
On Tuesday, Jonathan McKernan testified as the nominee for Undersecretary of the Treasury for Domestic Finance before the Senate Finance Committee. McKernan previously served on the Federal Deposit Insurance Corporation (FDIC) Board, as a key Treasury, FHFA, and congressional aide, and in private law practice.
McKernan, whose nomination to be Consumer Financial Protection Bureau (CFPB) Director was withdrawn earlier this year, will play a key role on issues related to financial institutions/markets and fiscal service – including municipal debt finance and the housing GSEs – in his role as Undersecretary, if confirmed.
What they are saying: MBA President and CEO Bob Broeksmit, CMB, sent a letter of support for McKernan’s nomination, which can be found here.
What’s next: If reported favorably by the Senate Finance Committee, McKernan would then go before the full Senate for a confirmation vote.
For more information, please contact George Rogers at (202) 557-2797 or Ethan Saxon at (202) 557-2913.
MBA staff will participate in the August 5 Nationwide Multi-State Licensing System (NMLS)
Ombudsman meeting to again urge state mortgage industry regulators to align the data elements of the NMLS Mortgage Call Report (MCR) with the Mortgage Bankers’ Financial Reporting Form (MBFRF).
• In a memorandum submitted last week to the NMLS Ombudsman, MBA recommended that state regulators work with its member companies and industry volunteers/stakeholders to engage through the Mortgage Industry Standards Maintenance Organization (MISMO) in an effort to strengthen alignment among the data elements of the two separate but similar quarterly reports.
Go deeper: As the mortgage industry’s recognized data standards body, MISMO offers a collaborative, open framework for developing and maintaining data standards that serve both public and private sector needs. Moreover, MISMO’s work has already advanced several state policy priorities.
• Notably, MISMO’s collaboration with the Conference of State Bank Supervisors (CSBS) created the Mortgage Compliance Dataset (MCD) that has provided regulators with a standardized dataset to support more efficient and effective mortgage examinations. This has improved regulatory consistency among the states while reducing compliance burdens for licensees.
Why it matters: MBA believes there is potential to both streamline and improve state regulatory oversight by enhancing data quality, interoperability, use of modern technology (e.g. application programming interfaces, APIs), consistency, and accuracy, while also reducing custom data mapping, manual intervention, and the burden on all parties.
What’s next: As the Ombudsman meeting takes place during the annual American Association of Mortgage Regulators (AARMR) conference, MBA will report back to members on all advocacy before state regulators following next week’s conference.
For more information, please contact William Kooper (202) 557-2737 or Liz Facemire (202) 557-2870.
Making Waves for Advocacy in August!
MBA’s Mortgage Action Alliance (MAA) Advocacy in August campaign is quickly approaching! Like the National Advocacy Conference (NAC), Advocacy in August is an important political engagement strategy designed to continue to advance MBA’s legislative agenda. View how you can make a big splash and engage with MBA next month!
Why it matters: During the Congressional August Recess (early August through September 1), members of Congress will be home in their states and districts to hear from constituents. Participation in these meetings is essential to our overall advocacy efforts. Sign up here to learn about scheduling your in-district or in-state meetings.
What’s next: Join MBA’s Legislative and Political Affairs team during the next MAA Quarterly Webinar: “Sustained Advocacy Drives Results: What’s Ahead?” Register now!
Register: MBA’s mPact Summit on August 5
Young professionals, meet us in the nation’s capital for a full day of career development and networking on Tuesday, Aug. 5, 2025. Back by popular demand, this event is built by young professionals in the real estate industry, for young professionals, and focused on helping you get to the next level.
Why it matters: The mPact Summit isn’t just about career tips, it’s about empowerment, connection, and growth! The summit will provide the tools, confidence, and network to thrive and help you become tomorrow’s leaders.
For more information, please contact Jacky Salazar at (202) 557-2746.
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:
• Home Equity Lending in Focus: Data-Driven Strategies for Modern Markets – July 28
• Combating Mortgage Fraud: Legal Duties to Prevent Fraud and Opportunities to Safeguard the System – Aug. 6
• Non-Agency Training Series: DSCR Loans – Aug. 12
• Freddie Mac Income Calculator: Deriving Precise Income with Speed – Aug. 13
• How Executives Use Social Media to Influence, Inspire, and Lead with Purpose – Aug. 19
• Benchmarking for Performance and the Performance Ratios Every Mortgage Banker Must – Sept. 3
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.
