Advocacy Update: MBA-Supported VA Partial Claims Bill Heads to President Trump for Enactment
Senate Passes MBA-supported VA Partial Claims Bill by Voice Vote; Heads to President Trump for Enactment
On Tuesday, the full U.S. Senate passed by voice vote – and with broad bipartisan support – H.R. 1815, the VA Home Loan Program Reform Act. The bill, which passed the U.S. House of Representatives in May, now heads to President Donald Trump for his signature and enactment.
• The bill reinstates the authority for the Department of Veterans Affairs (VA) to offer partial claims, aligning VA Home Loan program loss mitigation options to those offered to borrowers with Federal Housing Administration (FHA) and Fannie Mae and Freddie Mac loans.
What they’re saying: In a press statement, MBA President and CEO Bob Broeksmit, CMB, said, “Since the VA’s previous partial claim authority was sunset without a replacement nearly two years ago, MBA has worked closely with the VA, lawmakers, and our members to advocate for a permanent partial claim option that mirrors the successful programs offered by other federal housing agencies.
• Broeksmit added, “We look forward to President Trump signing this legislation into law and stand ready to work with the VA on a swift and seamless implementation.”
Go deeper: The VA’s COVID-era partial claim program was sunset nearly two years ago. Since then, MBA has worked closely with lawmakers, the VA, and its members to advocate for a permanent partial claim option that mirrors the successful programs offered by other federal housing agencies. Advocacy efforts have included Mortgage Action Alliance (MAA) call to actions and three witness testimonies before the House Veterans’ Affairs Committee.
• Following House passage of the bill in May, MBA worked closely with Senate Veterans’ Affairs Committee Chairman Jerry Moran (R-KS) and Ranking Member Richard Blumenthal (D-CT) to encourage swift action on bringing H.R. 1815 to the Senate floor.
Why it matters: Ultimately, permanent and unambiguous VA partial claim program authority will be crucial to help distressed veteran homeowners avoid foreclosure – especially following the recent winddown of the short-lived Veterans Affairs Servicing Purchase Program (VASP) program. Several discussion drafts of the House proposal were refined last year (and earlier this year) due to MBA’s direct lobbying efforts, which resulted in the following recommended improvements to the proposal:
• Clarifying that a partial claim shall not diminish the guaranty on an existing VA loan;
• Eliminating a proposed charging of interest on the partial claim balance;
• Ensuring alignment with FHA and GSE program structures that treat partial claims or loan deferrals as non-interest-bearing junior liens;
• Replacing a proposed fixed sunset date with a rolling five-year period post-enactment, in order to increase predictability for servicers and allow more borrowers to benefit; and,
• Increasing proposed lower maximum claim amounts to 30% of the unpaid principal balance, providing parity with FHA and a broader safety net for distressed borrowers.
What’s next: MBA looks forward to the signing of this legislation into law by President Trump and will work with its members and the VA on a swift and seamless implementation. Congress may also look to make further changes to the VA Home Loan Program by year-end.
For more information, please contact George Rogers at (202) 557-2797, Ethan Saxon at (202) 557-2913, Rachel Kelley at (202) 557-2816, Madisyn Rhone at (202) 557-2741, Kaitlin Hildner at 202-557-2933, or Brendan Kelleher at (202) 557- 2779.
FHFA Publishes Credit Score Implementation FAQs
On Tuesday, Federal Housing Finance Agency (FHFA) Director Bill Pulte posted on X a two-page Frequently Asked Questions (FAQ) that provides much-needed information on last week’s announcement that Fannie Mae and Freddie Mac (the GSEs) will begin to accept loans originated using VantageScore 4.0.
• MBA over the last week has reiterated in conversations with its members, the GSEs, and the media that there are many open questions that need to be resolved before the GSEs can accept delivery of these loans.
• Director Pulte’s published FAQ provides the first round of necessary details, highlighting the initiative is a work in progress, and that additional details will be provided in the weeks ahead.
The key takeaways from the FAQ are:
• The GSEs will permit lenders to deliver mortgage loans using a credit score generated by either the Classic FICO model or the VantageScore 4.0 model, but for the time being will not accept scores from multiple models on a single loan.
• Lenders can choose to report different credit scores on different loans – e.g., VantageScore 4.0 on one loan and FICO Classic on another (just not two scores on single loan). The GSEs will develop “appropriate risk mitigants” – e.g., to protect against “gaming” — to ensure safety and soundness.
• FICO 10T remains a validated credit score model and is planned for future use, though it is not available for loan deliveries now.
• The GSEs will announce changes to their Selling guides in a future release. An implementation date was not provided.
As initially reported, the credit reporting requirement will “stay tri-merge.” Importantly, however, the FAQs state that FHFA will continue to assess the credit reporting requirements in the future to lower costs for consumers and promote competition and innovation. MBA will use this opportunity to continue exploring a single-file credit report option and other alternatives to the tri-merge to lowering credit reporting costs.
Why it matters: As MBA reiterated in its own media statement, as well as a joint statement issued with other industry trades, 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.
What’s next? MBA will continue engaging with the GSEs and FHFA to resolve the many operational questions that remain, including Loan Level Price Adjustment grids, minimum credit score eligibility, and business rules around using different scores and different loans. In addition, questions remain on the implications for mortgage insurance pricing and investor acceptance of VantageScore 4.0.
For more information, please contact Sasha Hewlett at (202) 557-2805 and Brendan Kelleher at (202) 557-2779.
MBA Supports Reconsideration of Energy Standards
On Thursday, MBA submitted comments in support of the Department of Housing and Urban Development’s (HUD) and Department of Agriculture (USDA) proposal to reconsider changes to energy requirements for building standards.
• The original determination, released by the Biden administration, led to the new building codes, requiring adoption of the 2021 IECC and 2019 ANSI/ASHRAIE/IES Standard 90:1 for FHA-insured construction.
• MBA has long argued that this change will increase costs, limit construction of new supply, and conflict with state and local building codes.
Why it matters: Implementation of the new energy standards have been delayed by the Trump administration, and a reversal of the original determination could lead to the repeal of the Rule.
What’s next: MBA supports the reversal of this proposal and will continue to advocate for reasonable requirements for FHA programs to ensure the continued development of new housing units.
For more information, please contact Darnell Peterson at (202) 557-2922.
MBA Submits Joint Trades Letter to FSOC on Nonbank Designations
Last Monday, MBA and other trades submitted a letter to the Financial Stability Oversight Council (FSOC) that encourages FSOC to restore the 2019 Guidance governing the designation of nonbank financial institutions as systemically important financial institutions (SIFIs).
• This letter was sent in response to recent comments made by Treasury Secretary Scott Bessent, Chairman of FSOC, who testified during a recent House Financial Services Committee meeting that FSOC is reassessing the Biden Administration’s 2023 guidance.
Go deeper: MBA supports the 2019 guidance, which creates a more transparent process for identifying and designating nonbanks as SIFIs and includes stronger due process protections before an entity can be designated. This guidance used an “activities-based” approach for designating nonbanks that identifies risk on a system-wide basis to be addressed by federal and state regulators.
• MBA opposed the 2023 guidance that expanded the industries and activities that could lead to a nonbank being designated as a SIFI, broadened the definition of what constitutes a systemic threat, and reduced procedural requirements.
What’s next: MBA will keep members informed of any updates.
For more information, please contact Justin Wiseman at (202) 557- 2854 or Kaitlin Hildner at (202) 557-2933.
Senate Confirms Gould, Pettit for Key Regulatory Roles; McKernan Hearing Scheduled
Recently, the full Senate confirmed Jonathan Gould to lead the Office of the Comptroller of the Currency (OCC) by a vote of 50-45. And earlier this week the Senate confirmed Luke Pettit to be Assistant Secretary of Treasury for Financial Institutions by a bipartisan vote of 69-30.
• In addition, the Senate Finance Committee has scheduled a hearing on July 22 for Jonathan McKernan’s Undersecretary of Treasury (Domestic Finance) nomination. Gould and Pettit, and McKernan, if confirmed, will form a key trio of Trump Administration officials important to real estate finance.
What they’re saying: In a press statement, MBA’s Broeksmit said about Gould:
“We look forward to Comptroller Gould’s measured approach to banking supervision, with a focus on ensuring safety and soundness in the banking system without imposing complex or burdensome regulatory oversight. MBA will also continue to advocate for reforms that support improved housing affordability and banks’ increased participating in the mortgage market, such as recalibrating risk-based capital requirements for mortgage servicing rights and warehouse lending.”
MBA has also publicly supported Pettit and McKernan’s nominations in a letter and press statement, respectively.
Go deeper: Gould leads one of the three agencies that have rulemaking authority (along with the Board of Governors of the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC)) over numerous financial laws. These include bank capital rules and regulations for the Community Reinvestment Act. Earlier this week, a Notice of Proposed Rulemaking (NPR) was issued to rescind the recent changes to the CRA rule (see blurb below).
Pettit will lead efforts at Treasury to help formulate policy on financial institutions and community and economic development, cybersecurity, and critical infrastructure protection. He previously worked in the private sector and, until his confirmation, served as senior staff to Senator Bill Hagerty (R-TN), where he worked on the MBA-supported Homebuyers Privacy Protection Act (Trigger Leads) as well as numerous other bills.
What’s next: McKernan, whose nomination to be 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 Treasury Undersecretary for Domestic Finance. 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.
House Considers HUD FY26 Budget Reductions
On Monday, the House Appropriations Subcommittee on Transportation, Housing and Urban Development (T-HUD) considered its version of the Fiscal Year (FY) 2026 appropriations for the Department of HUD and Transportation.
Go deeper: The House bill, now revealed, does not eliminate nor reduce funding for many HUD programs as significantly as proposed in the President’s budget request, underscoring the importance of ongoing congressional advocacy for key housing and community development programs.
The proposed legislation, which passed the full House Appropriations Committee along party lines (35-28), yesterday, provides a total discretionary allocation of $89.9 billion, a $4.5 billion reduction from the FY 25 enacted level. Watch the video of the subcommittee proceedings here. MBA submitted a letter outlining its requests to leadership, which can be found here.
Why it matters: The current language provides a net discretionary total of $67.751 billion for HUD, which is $939 million below the FY 25 enacted level, reflecting a proposed 26% reduction in staffing.
What’s next: Senate appropriators have not yet released their suggested T-HUD funding text. In prior years, the Senate’s T-HUD bill differed from the initial House version and ultimately retained funding for programs that had been reduced or eliminated. MBA will continue to advocate for industry priorities, including adequate funding HUD’s cybersecurity and IT projects and programs, adequate funding for FHA and Ginnie Mae’s administrative expenses, and housing counseling assistance programs.
For more information, please contact Rachel Kelley at (202) 557-2816 or Madisyn Rhone at (202) 557-2741.
House Hearings Spotlight Housing Supply and Regulatory Reform Needs
This week, the House Financial Services Committee held two hearings with broad implications for MBA members.
• On Tuesday, the full Committee convened “Dodd-Frank Turns 15: Lessons Learned and the Road Ahead,” where lawmakers debated the law’s impact on financial markets, regulatory complexity, and consumer protection. Key themes included recalibrating Basel III capital standards, tailoring compliance frameworks for smaller institutions, and reining in the CFPB’s authority under UDAAP. Several members also pushed to repeal Section 1071 data collection rules, citing burdens on small and mid-size lenders.
• On Wednesday, the Subcommittee on Housing and Insurance held, “HOME 2.0: Modern Solutions to the Housing Shortage,” which included a wide-ranging discussion on barriers to housing supply, including workforce shortages, regulatory delays, and capital stack complexity. Notably, Rep. Janelle Bynum (D-OR) raised a question on modular construction’s potential to accelerate housing development, which is an issue MBA has championed through prior engagement with the Committee. Witnesses affirmed that off-site and modular construction is a valuable tool to improve efficiency, reduce costs, and increase participation from smaller builders and nonprofits.
Why it matters: The committee’s emphasis on housing supply indicates progress in recognizing modular housing as a practical solution to issues related to housing availability and affordability. At the same time, ongoing discussions about financial regulation and Consumer Financial Protection Bureau (CFPB) oversight have a direct impact on the compliance burdens, capital access, and consumer-facing operations of MBA members.
What’s next: MBA will continue to engage with lawmakers and regulators to advance modular-friendly policies, including clarifying appraisal, warranty, and financing standards across HUD and GSE channels. We will also monitor developments related to Basel III, Section 1071, and UDAAP reform to ensure members are protected from unnecessary regulatory burdens while preserving market stability and consumer access.
For more information, please contact Rachel Kelley at (202) 557-2816 or Madisyn Rhone at (202) 557-2741.
Agencies Release Proposal to Rescind 2023 CRA Final Rule
On Wednesday, the OCC, Federal Reserve, and Federal Deposit Insurance Corporation (FDIC) issued a joint NPR to rescind the 2023 CRA Final Rule. The new proposal calls for a return to the CRA framework adopted in 1995. Comments on the NPR are due 30 days after the date of publication in the Federal Register.
• The agencies cited two major objectives in their new proposal: (1) restoring certainty in the CRA framework for stakeholders, and (2) limiting regulatory burden on banks.
• Regarding the potential of proposing an entirely new CRA framework, the NPR noted, “Another alternative the agencies considered was proposing to replace the 2023 CRA Final Rule with a new CRA framework that is materially different from the framework contained in the 2023 CRA Final Rule. However, proposing to establish a materially revised framework would involve undertaking an extensive regulatory process, which would not be consistent with the agencies’ objective of restoring certainty in the near term.”
• Lastly, the agencies considered making amendments to the 2023 CRA Final Rule but decided against doing so due to the Rule’s interdependent provisions.
Why it matters: Although MBA supports the agencies’ goals of providing certainty around the CRA framework and limiting regulatory burden on banks, the 1995 framework requires meaningful changes. MBA stands ready to work with the Administration on changes that will positively impact banks, consumers, and make examinations easier for the agencies.
What’s next: MBA will submit a comment letter to the agencies advocating for our members’ interests. Please share any CRA-related comments, questions, or concerns with us.
For more information or to participate in the comment writing process, please contact Fran Mordi at (202) 557-2860 and John Lammle at (202) 557-2789.
NMLS Holds Town Hall to Announce Numerous Changes; MCR Version 7 XML File to Be Released Later This Year
This week, the Nationwide Multi-State Licensing System and Registry (NMLS) held the second of two “town hall” briefings for stakeholders to provide an overview of system, policy, and NMLS Resource Center changes coming on September 20th as well as additional changes scheduled for 2026.
• Notably, the presentation noted that no modifications suggested during the public comment period will be made to Form Version 7 of the Mortgage Call Report (MCRV7), which is scheduled for implementation on January 1, 2026.
Go deeper: NMLS staff added that the anticipated release of the XML file specifications needed by vendors and lenders to operationalize MCRV7 will once again only be made available very late in the development timeline (November or December), just weeks before the beginning of reporting, and during the intense licensing renewal season and year-end systems maintenance.
To provide details on the changes, NMLS has posted a series of announcements to www.NMLS.org, a website that will itself be revised. Broadly, the modernization elements which were discussed include:
• Improvements to the individual application process;
• Enhanced functionality of the NMLS Resource Center to improve navigation and provide more streamlined content for companies and individuals; and
• System updates to accommodate new policies for disclosure questions, remote work, unsubmitted filings, and MCRV7.
Why it matters: Starting September 20, 2025, all old URLs and bookmarks will be redirected to the new NMLS homepage. Also, while core NMLS materials will remain, they may appear in new locations or formats, and outdated or unnecessary content will be retired. NMLS hopes that these improvements will make the system more user-friendly and modern.
• For example, they suggested that the changes will result in simplified navigation based on user type and common tasks; improved search functions for faster access to up-to-date information; cleaned-up content, repair of broken links and removal of duplicates; and, more self-help options. These improvements will replace the current state and federal resource center sites.
What’s next: MBA will alert members regarding any training offered by NMLS, but also strongly encourages members to immediately review information at www.csbs.org/nmls-modernization, State Regulated Industry Town Hall #1 Recording, and the Town Hall FAQs.
For more information, please contact William Kooper (202) 557-2737 or Liz Facemire (202) 557-2870.
[VIDEO] mPower Moments: On the Four Women’s Health Myths with Dr. Elizabeth Comen
During MBA’s Secondary and Capital Markets Conference in May, mPower Founder Marcia Davies sat down with Dr. Elizabeth Comen, Physician-Scientist, Associate Professor of Medicine at NYU, and Medical Historian, for an important conversation on women’s health. During the conversation, Dr. Comen discussed her latest book, “All in Her Head,” and the top medical myths that women often experience.
Go deeper: Dr. Comen also noted the importance of creating more spaces and opportunities for women to discuss their health issues and the need for self-advocacy to gain the answers a woman may need when dealing with medical advice.
To watch more mPower Moments, click here.
For more information, please contact Marcia Davies at (202) 557-2707.
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!
For more information, please contact Jamey Lynch, AMP at (202) 557-2818 or Margie Ehrhardt at (202) 557-2708.
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:
• 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 – Aug. 6
• Non-Agency Training Series: DSCR Loans – Aug. 12
• Freddie Mac Income Calculator: Deriving Precise Income with Speed – Aug. 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.
