MBA Advocacy Update: Senate Passes MBA-Supported Trigger Leads Bill by Voice Vote; House Financial Services Committee Advances Slightly Amended Version
Senate Passes MBA-Supported Trigger Leads Bill by Voice Vote; House Financial Services Committee Advances Slightly Amended Version
Late Tuesday, a bipartisan group of bill cosponsors and lawmakers serving on the House Financial Services Committee (HFSC) passed a slightly amended version of the Homebuyers Privacy Protection Act of 2025 (H.R. 2808) by a vote of 46-0.
And yesterday, the full Senate passed S. 1467, MBA-supported companion legislation, by unanimous consent (voice vote)!
• MBA strongly supported the slightly-amended House bill in a letter to HFSC leadership before Tuesday’s vote, led a joint coalition letter in support of the Amendment in the Nature of a Substitute (ANS) to H.R. 2808, and issued a Mortgage Action Alliance (MAA) Call to Action.
In a sign that further signified strong support for both the House and Senate bills, the National Association of Attorneys General also sent a letter, signed by 42 state attorney generals, that urges Congress to pass the legislation as soon as possible.
What they’re saying: In a press statement on the House action, MBA President and CEO Bob Broeksmit, CMB, said, “We thank Chairman French Hill (R-AR) for including H.R. 2808 in today’s markup, lead sponsors Rep. John Rose (R-TN) and Rep. Ritchie Torres (D-NY) for their ongoing leadership, and the many cosponsors and lawmakers on the panel who voted in favor of the bill, which will stop the abusive use of mortgage credit leads while preserving their value in appropriately limited circumstances.”
And in last night’s statement regarding full Senate passage of the companion bill, Broeksmit said, “MBA looks forward to working with the sponsors and House and Senate leadership to reconcile the slight differences in the two bills so that one bill can be passed in both chambers and signed into law as quickly as possible.”
Why it matters: This important legislation, if enacted, would eliminate the abusive use of mortgage credit trigger leads while preserving their deployment in appropriately limited circumstances. Under this bill, trigger leads would be permissible under the Fair Credit Reporting Act only in limited circumstances during a real estate transaction and only to provide a firm offer of credit.
Go deeper: A credit reporting agency (“CRA”) would not be able to furnish a trigger lead to a third party unless the third party has certified to the CRA that either:
• The consumer explicitly consents to such solicitations;
• The third party has originated the current residential mortgage loan of the consumer;
• The third party is the servicer of the current residential mortgage loan of the consumer; or
• The third party is an insured depository institution or insured credit union and holds a current account for the consumer.
What’s next: This week’s strong HFSC committee vote – coupled with the unanimous passage of S. 1467 – accelerates the legislation’s chances of being considered quickly on the floor of the full U.S. House. MBA will work aggressively to advocate for the remaining action needed to have the proposal enacted and signed into law.
For more information, please contact George Rogers at (202) 557-2797, Ethan Saxon at (202) 557-2913, Rachel Kelley at (202) 557-2816 and/or Madisyn Rhone at (202) 557-2741.
HUD Secretary Testifies Before Key House and Senate Appropriations Panels
Last week, Department of Housing and Urban Development (HUD) Secretary Scott Turner testified on the agency’s Fiscal Year 2026 (FY 2026) budget proposal before both the House and Senate Appropriations Subcommittees on Transportation, Housing and Urban Development, and Related Agencies (T-HUD).
• Secretary Turner defended a roughly $35.5 billion reduction in HUD’s budget request and asserted the need for a “new playbook” that emphasizes fiscal restraint and transferring diminished rental assistance programs to state control. To read the full hearing summaries for the respective hearings, click here and here.
Why it matters: While the HUD budget request keeps Federal Housing Administration (FHA) and Ginnie Mae funding for salaries and expenses at or above FY 2025 levels, the funding request for Information Technology is reduced by $18 million from the 2025 enacted level.
• At the Senate hearing, Chairwoman Cindy Hyde-Smith (R-MS) expressed concern that the cross subsidy that other HUD programs receive from FHA Mortgage Insurance premiums will be reduced due to low loan volume and cautioned the Secretary that a statutory authorization is not in place to transfer funds to state programs, as requested.
• Senator Schatz (D-HI) encouraged the HUD Secretary to renew suspended grant programs that encourage zoning reforms and advance new regulatory reforms to expand the supply of affordable housing.
• In the House, Democratic members on the panel, led by Ranking Member James Clyburn (D-SC), rejected the agency-wide cuts as “unacceptable,” citing the elimination of programs such as CDBG, Section 8, and public housing as dangerous to seniors, veterans, and low-income households.
What’s next: In July, the respective full House and Senate Appropriations Committees will seek to mark-up different iterations of each chambers’ T-HUD funding bill for FY 2026. However, without an agreement on top line spending levels between the House and Senate, another continuing resolution at FY 2025 levels is the most likely outcome.
For more information, please contact George Rogers at (202) 557-2797, Ethan Saxon at (202) 557-2913, Rachel Kelley at (202) 557-2816 and/or Madisyn Rhone at (202) 557-2741.
Capital Framework Reform Takes Center Stage as Key Bank Nominee Sworn In
On Monday, Michelle Bowman was sworn in as Vice Chair for Supervision of the Board of Governors of the Federal Reserve System. Her term as Vice Chair for Supervision ends on June 9, 2029.
Among her top priorities, Vice Chair Bowman cited “reviewing and reforming the capital framework to ensure that it is appropriately designed and calibrated.”
• In July, the Federal Reserve will bring together academics, capital experts, and bankers to explore whether capital requirements for large banks are currently functioning as intended. The capital conference will include discussions of potential reforms to the GSIB surcharge, Basel III capital requirements, leverage ratio requirements, and stress testing.
• In alignment with Vice Chair Bowman’s priorities, the Federal Deposit Insurance Corporation (FDIC) notified the Office of Information and Regulatory Affairs of its intent to publish a rule titled, “Modifications to Supplementary Leverage Capital Requirements for Large Banking Organizations; Total Loss-Absorbing Capacity Requirements for US Global Systemically Important Bank Holding Companies.”
Under Vice Chair Bowman’s leadership, the Federal Reserve also plans to review capital requirements associated with the community bank framework. This review will include, “capital requirements like the calibration of the community bank leverage ratio, and whether reforms to the capital framework for mutual banks can be improved to promote capital formation.”
Why it matters: In March, MBA provided a statement in support of Ms. Bowman’s nomination. She has shown a commitment to balanced oversight since becoming a member of the Federal Reserve Board of Governors in 2018. If approved, Administration officials anticipate supplementary leverage ratio reform will help support the Treasury market. Reform will also reduce the capital required on reserves at the Federal Reserve.
• In addition, MBA submitted recommendations in May to all of the federal banking agencies urging them to address excessively high risk weightings for mortgage servicing assets and warehouse lines of credit – key supports for the housing finance market – as part of any capital rule reforms.
What’s next: MBA will continue to engage with federal banking regulators to ensure our members’ viewpoints are reflected throughout the policymaking process.
For more information, please contact Fran Mordi at (202) 557-2860
Treasury Secretary Bessent Testifies Before House and Senate Tax Committees
On Wednesday and Thursday, Secretary of the Treasury Scott Bessent testified before the House Ways & Means and the Senate Finance Committees. Secretary Bessent emphasized the Trump Administration’s commitment to revitalizing American industry, simplifying the tax code, and making permanent the reforms of the 2017 Tax Cuts and Jobs Act.
• Secretary Bessent also addressed concerns surrounding the so-called “899 issue,” a reference to Section 899 of the tax code, which affects foreign-owned U.S. real estate entities. He signaled that Treasury is reviewing the provision’s impact on cross-border investment, passive investments, and real estate capital flows, particularly considering the Administration’s broader push to incentivize domestic manufacturing and construction through the “One Big Beautiful Bill” (H.R. 1).
• While no immediate changes were announced, Secretary Bessent acknowledged industry calls for clarity and pledged to work with Congress on potential reforms that balance national interest with market competitiveness. Full summaries for the House hearing are here and for the Senate hearing here.
Why it matters: Section 899 matters significantly to the real estate finance industry because it introduces potentially punitive tax measures that could disrupt foreign investment flows into U.S. real estate—an essential source of capital for the sector. Real estate investment trusts (REITs), private equity funds, and sovereign wealth funds—major players in U.S. commercial real estate—could face steep tax hikes, reducing their net returns and potentially deterring future investment.
Go deeper: There are a number of key industry priorities contained within the House-passed “One Big Beautiful Bill.” Additionally, while there was discussion at the House hearing on Section 899, the Senate hearing focused on macro policy matters.
At the Senate hearing, Republicans strongly pushed for the permanent extension of the 2017 Trump tax cuts, arguing it would boost investment, raise after-tax income, and prevent a record tax hike. Democrats voiced strident concerns about healthcare and Medicaid cuts, warning that up to 16 million people could lose coverage under the bill. On trade, Secretary Bessent strongly defended the Administration’s approach as a way to boost domestic manufacturing and raise revenue, while stating there are no indications that trade policy to date has impacted inflation.
What’s next: MBA will continue to educate and advocate for changes to how Section 899 affects the real estate finance industry, as well as lobby for the retention of the pro-industry provisions contained in the House-passed bill. MBA signed onto an industry trades letter to the Senate highlighting concerns with the House-passed Section 899 and is working on a separate letter with our members’ concerns.
For more information, please contact: George Rogers at (202) 557-2797, Rachel Kelley at (202) 302-1185, Ethan Saxon at (202) 557-2913, or Madisyn Rhone at 202-557-2741.
MBA, California MBA Lead Joint Trades Letter Opposing IMB CRA Bill
On Tuesday, MBA, the California MBA, the California Building Industry Association, and the Leading Builders of America submitted a letter to the Chair of the California Senate Banking Committee opposing legislation (AB 801) to impose a state-level Community Reinvestment Act (CRA) framework on independent mortgage banks (IMBs).
Go deeper: The letter details the many reasons IMBs should not be subject to CRA and also discusses the bill’s numerous flaws, such as how CRA would add new expensive and unnecessary compliance obligations. It also highlighted the bill’s alarming provision that could result in the imposition of administrative penalties of up to $100,000 for failing to comply with these new requirements.
• The bill passed the Assembly last week, but it was weakened by a sharply divided vote. While there are 60 Democrats in the Assembly, only 45 voted to approve and 15 voted either “no” or “abstain.” They were joined by all 19 Republicans.
Why it matters: Waning support for the bill is the direct result of industry advocacy by MBA, the California MBA, and MAA members in California who responded to a Call to Action in recent weeks to urge “no” votes from their Assembly members in Sacramento.
What’s next: In the Senate, the bill will need to be approved by the Senate Banking and Senate Appropriations Committees to get to the floor. Each stop provides an opportunity to block it. MBA and the California MBA will continue to collaborate with allied industry trade groups, and MAA members in California should also be prepared for another Senate Call to Action in the coming weeks.
For more information, please visit the MBA State CRA Resource Center or contact William Kooper at (202) 557-2737 or Liz Facemire at (202) 557-2870.
Participate in MORPAC Action Week, June 23-27!
On June 23, MORPAC, MBA’s Political Action Committee, officially kicks off its annual Action Week. As the only federal PAC that represents the entire real estate finance industry, MORPAC provides access to candidates who will shape policies that impact MBA members.
• MORPAC is aiming to raise $225,000 during the 2025 Action Week – from at least 20 participating member companies.
• We need your help! Sign up now to make a bigger impact by running a MORPAC campaign and encourage your employees to directly participate in the political process.
Why it matters: MORPAC is a powerful tool for driving policy change, providing MBA members with a platform to amplify their voice, educate decisionmakers, and channel financial resources to support pro-industry candidates and advance MBA’s legislative agenda.
What’s next: If you are interested in getting involved during MORPAC Action Week, please fill out this link.
For more information, please contact Erin Reilly at 202-557-2751.
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:
• Getting to Accept – Using Loan Product Advisor to Your Advantage – June 25
• Can You Pay That? Navigating LO Compensation, Competition, and Compliance in 2025 – June 26
• AI on Trial: Fair Lending, Compliance, and the Fight for Transparency in Mortgage Lending – July 9
• Bank-Owned Mortgage Divisions: What Bankers Need to Know to Manage Mortgage Banking – July 21
• Legal Duties to Prevent Fraud and Opportunities to Safeguard the System – Aug. 6
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.
