Advocacy Update: Policy Wins in Final Tax and Reconciliation Package; FHFA News on VantageScore Adoption; more
ICYMI: Final Tax and Reconciliation Passage Contains Numerous Pro-Real Estate Tax Provisions
In what is a significant win for MBA members, the full U.S. House of Representatives passed, and the President signed, the Senate’s substitute amendment to H.R. 1, the Republican tax/reconciliation package, by a vote of 218-214.
• The megabill includes numerous MBA-supported tax changes, increases the debt limit by $5 trillion, and contains spending cuts and energy, defense, and border security measures.
What they’re saying: MBA President and CEO Bob Broeksmit, CMB, in a press statement, said, “MBA is pleased that the final tax package preserves or strengthens – and makes permanent – numerous pro-housing and pro-economic growth tax provisions that were identified by our Board-level Tax Task Force, led by 2025 Chair-Elect Christine Chandler and Vice Chair Owen Lee.”
Why it matters: Through direct advocacy efforts with Republican lawmakers and their key staff, MBA secured numerous tax policy changes that preserve, and in several cases enhance, key elements of the 2017 Tax Cuts and Jobs Act, including:
• Makes permanent the 2017 individual rate structure and increased standard deduction;
• Maintains and makes permanent the 20% deduction in current law for Qualified Business Income under Section 199A – and expands the deduction limit’s “phase-in” range;
• Allows 100% bonus depreciation for certain qualifying properties and restores/makes permanent full expensing for new capital investments;
• Temporarily raises the current state and local tax (SALT) deduction cap to $40,000, with a $500,000 income cap that grows annually by 1% until it “snaps back” after five years;
• Permanently caps eligible mortgage acquisition debt interest deductibility (HELOCs eligible) at $750,000;
• Reinstates and makes permanent the deductibility of mortgage insurance premiums (subject to AGI limitations);
• Makes durable enhancements to the Low-Income Housing Tax Credit (LIHTC) program, e.g., providing a permanent 12 percent increase in 9% credit authority, while permanently lowering the bond financing test from 50 to 25 percent;
• Makes a renewing set of rounds of the Opportunity Zones (OZ) program permanent – with needed reporting/programmatic tweaks;
• Permanently reinstates EBITDA for the calculation of business interest deductibility; and,
• Significantly, does NOT alter the deferred tax treatment of MSRs, nor the tax code’s current “gain on sale” provision, Section 1031 Like Kind Exchange rules, carried interest provision, or capital gains rate.
What’s next: MBA is reviewing the legislation in greater detail and will provide a comprehensive summary of the tax provisions pertinent to real estate finance.
For more information, please contact Rachel Kelley at (202) 557-2816, Madisyn Rhone at (202) 557-2741, George Rogers at (202) 557-2797, Ethan Saxon at (202) 557-2913, Fran Mordi at (202) 557-2860, and/or Bill Killmer at (202) 557-2736.
FHFA Opens Door to VantageScore 4.0 Adoption
On Tuesday, Federal Housing Finance Agency (FHFA) Director Bill Pulte posted the following message on his X account:
“Effective today, to increase competition to the Credit Score Ecosystem and consistent with President Trump’s landslide mandate to lower costs, Fannie Mae and Freddie will ALLOW lenders to use Vantage 4.0 Score with no current requirement to build new infrastructure (stays Tri Merge).”
• Director Pulte’s post was followed by several others including some indicating pricing incentives for those that use both FICO and VS 4.0.
• Yesterday, Director Pulte also announced via X that a second vendor, Westcor, will be added to Fannie Mae’s title acceptance pilot for certain refinances. He said the move is to “further reduce closing costs for homeowners, and foster more competition.”
Why it matters: As reiterated in a statement sent to numerous media outlets, MBA has consistently advocated for increased competition in credit reporting and scoring and welcomes reforms that will lower costs for consumers. FHFA’s announcement to allow lenders to use VantageScore 4.0 could help to accomplish the goals of added competition in the credit score space and reduced consumer costs, if implemented correctly.
Go deeper: MBA is keenly aware that numerous policy, operational, and systems details will need to be addressed before lenders can submit Vantage scores to the GSEs, and MBA has already highlighted several key issues in communications with the GSEs. While the policy change was “effective immediately,” it will take some time before VantageScore 4.0 is available for use as a practical matter.
What’s next: MBA is engaged with FHFA and the GSEs and looks forward to working with them to address the numerous implementation questions that are necessary to realize the benefits of updated scoring models. MBA will also continue to press for reforms of the tri-merge credit reporting requirement to encourage greater competition and lower costs for consumers.
For more information, please contact Sasha Hewlett at (202) 557-2805.
HUD and OMB End PAVE Task Force Policies to Reduce Regulatory Burden
On Thursday, the Department of Housing and Urban Development (HUD) and the Office of Management and Budget (OMB) announced the termination of policies established under the Property Appraisal and Valuation Equity (PAVE) task force. HUD cited the move as a step toward reducing regulatory hurdles, lowering costs, and expanding access to homeownership.
Go deeper: The decision aligns with President Donald Trump’s executive orders to end federal diversity, equity, and inclusion (DEI) initiatives. HUD Secretary Scott Turner and Acting OIRA Administrator Jeffrey Clark affirmed that core fair housing protections under the Fair Housing Act and Equal Credit Opportunity Act will remain in place. Policies related to the appraisal reconsideration of value process are among those being eliminated.
The terminated policies related to Reconsideration of Value and Appraisal Fair Housing Compliance include:
• ML 2024-16, Extension to the Effective Date of Appraisal Review and Reconsideration of Value (ROV) Updates
• ML 2024-07, Appraisal Review and Reconsideration of Value
• ML 2021-27, Appraisal Fair Housing Compliance and Updated General Appraiser Requirements
What is next: MBA will continue to monitor these and other HUD announcements and will keep members informed of any impacts.
For more information, please contact Darnell Peterson at (202) 557-2922.
Register: Condo Lending Summit on July 23
MBA will be holding an in-person summit on July 23, 2025, in Washington, D.C., where lenders, representatives from the government agencies, and data providers will meet to address the key condo lending issues.
• Condominiums for many are an entry point into homeownership, and in many markets provide affordable housing options. Mortgage lending for condos plays a critical role in facilitating the access to financing for consumers, but the lending environment has become increasingly complex on many fronts.
Why it matters: The condo lending landscape continues to evolve rapidly due to factors such as housing market dynamics, investor requirements, and insurance challenges. Bringing together industry stakeholders to discuss these issues helps us to collaborate on solutions and provides educational and networking opportunities.
What’s next: Register here.
For more information, please visit the condo summit website or contact Joel Kan at (202) 557- 2951 or John McMullen at (202) 557- 2706.
July 22 CRA Workshop to Focus on Business Planning to Meet CRA Objectives
MBA will conduct an in-person CRA Workshop on July 22, 2025, in Washington, D.C., to bring industry experts – lawyers, managers of affordable housing and Community Reinvestment Act (CRA) lending, credit risk analysts, compliance specialists, consultants – together to discuss the current status of CRA and how to best achieve CRA lending objectives.
Go deeper: Over the years, there have been regulatory updates to CRA implementation, including significant revisions in 1995, 2021, and 2023.
• Most recently, agency efforts to modernize CRA have been controversial, resulting in court actions. At the same time, some states have enacted or are considering their own versions of CRA that may include both banks and independent mortgage companies.
Why it matters: The CRA challenges for residential mortgage lending are numerous, and include: general competition for loan volume, movement to a purchase market, tight housing inventories particularly for low-to-moderate income housing in many parts of the country, the changing landscape of retail bank branches in an electronic age, and possibly new rules at the state level, as well as lack of clarity in the rules at the national level.
What’s next: Register for MBA’s CRA Lending Workshop here.
Register: MBA’s mPact Summit on Aug. 5
Meet us in the nation’s capital for a full day of career development and networking on Tuesday, August 5, 2025. Back by popular demand, this event is built by young professionals in the real estate industry, for young professionals, who are 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.
Register now!
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:
• The Current State of Non-Agency Lending – July 15
• Bank-Owned Mortgage Divisions: What Bankers Need to Know to Manage Mortgage Banking – July 21
• Shared Equity Mortgages: How Companies Can Expand Their Community Impact – July 22
• 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 – August 6
• Non-Agency Training Series: DSCR Loans – August 12
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.
