MBA Advocacy Update: Administration News on GSE Release, Fraud; Maryland Trust Licensing News
President Trump, FHFA Director Pulte Hint Further on the GSEs’ Future; Fannie Mae Announces AI Fraud Detection Technology Partnership with Palantir
Last week, President Donald Trump and Federal Housing Finance Agency (FHFA) Director Bill Pulte in social media posts and in TV interviews reiterated last week’s news that the administration is considering “bringing Fannie Mae and Freddie Mac public.”
• While the details on timing and next steps remain scant, President Trump in a Tuesday night Truth Social post said, “I am working on TAKING THESE AMAZING COMPANIES PUBLIC, but I want to be clear, the U.S. Government will keep its implicit GUARANTEES, and I will stay strong in my position on overseeing them as President.”
Why it matters: As President and CEO Bob Broeksmit, CMB, shared in a video address last week, MBA stands ready to work with the Administration on a thoughtful exit plan with an appropriate timeline, and that our association believes strongly that any release must include an explicit federal backstop – passed by Congress and paid for by the GSEs – of Fannie and Freddie’s mortgage-backed securities to protect consumers, taxpayers, and the housing finance system.
Also, last week, Fannie Mae announced the launch of a new, AI-powered Crime Detection Unit partnership with software company Palantir.
• According to the release, Fannie Mae’s Crime Detection Unit, “will help detect and prevent mortgage fraud with speed and precision never before seen in the U.S. housing market.” The project will focus initially on incoming mortgages in Fannie Mae’s multifamily business and could expand to single-family mortgages at Fannie Mae and/or be used at Freddie Mac in the future.
• MBA has already raised concerns with Fannie Mae that the use of this technology should be available to lenders prior to origination and not as a second-guessing tool in the QC process.
What’s next: MBA is engaged with the White House, Treasury Department, and FHFA regarding all activities at the two agencies – as well as conversations on their futures – and will continue to provide relevant updates to members.
For more information, please contact Sasha Hewlett at (202) 557-2805.
Following Enactment of MBA-Supported Legislation, Maryland OFR Rescinds Previous Mortgage Trust Licensing Policies
On Thursday, the Maryland Department of Financial Regulation (OFR) announced it was rescinding its previous guidance documents issued earlier this year that required the licensing of passive mortgage trusts.
• “Effective immediately, OFR rescinds its prior guidance issued on January 10, 2025, and all related advisories (issued on January 31, 2025, and February 18, 2025) and enforcement deadlines concerning licensing requirements for Mortgage Trusts. OFR is also formally withdrawing the previous emergency and proposed regulations relating to Mortgage Trust licensure, Maryland Register, Volume 52, Issue 11, Page 535 (Issued May 30, 2025).”
Go deeper: Additionally, OFR responded to MBA’s request following enactment of the new law to clarify that commercial lenders making loans exclusively for business purposes under Maryland’s installment loan statutes, as defined by Md. Code Ann., Fin. Inst. § 11-301, are not subject to OFR’s licensing requirements under mortgage lending and installment licensing provisions.
• Lastly, OFR noted that stakeholders reviewing the statute on Westlaw should take care to view the House version of the bill, HB1516, rather than an earlier version of the proposed law from the cross-filed bill, SB1026.
Why it matters: MBA and the Maryland Mortgage Bankers and Brokers Association (MMBBA) collaborated with industry partners to achieve this significant advocacy victory. Mortgage Action Alliance members in the state also provided important momentum to the effort by responding to an urgent Call to Action.
What’s next: The new law also establishes a working group to provide recommendations to the Legislature by December 31st regarding the issue of trust licensing. MBA and MMBBA will continue to engage through any opportunity provided by the group.
For more information, please contact William Kooper at (202) 557-2737 or Justin Wiseman (202) 557-2854.
MBA Issues MAA Call to Action Opposing Proposed California’s Costly CRA Legislation
On Wednesday, MBA and the California Mortgage Bankers Association issued a MAA Call to Action asking members and industry professionals alike to contact their assemblymember and urge them to vote NO on California AB 801.
Go deeper: This legislation seeks to impose a state-level Community Reinvestment Act (CRA) framework specifically on independent mortgage banks (IMBs), mandating new compliance obligations that are unnecessary, redundant, and damaging. Even more alarming, the bill authorizes the Department of Financial Protection and Innovation (DFPI) to impose administrative penalties of up to $100,000 for failing to comply with these new requirements.
Why it matters: Subjecting IMBs to costly new CRA obligations is unwarranted given that these companies clearly lead the market in serving low- and moderate-income borrowers, and minority communities (see the MBA-sponsored report by the Urban Institute for national and state data). There is no evidence that state CRA laws improve access to credit. Instead, AB 801 would add new regulatory burdens on an already heavily- supervised industry segment. The bill would increase origination and servicing expenses that would inevitably be passed onto borrowers — limiting affordability, especially for first-time, minority, and lower-income homebuyers.
What’s next: AB 801 is being considered by the California Assembly, and legislators need to hear from you about the harmful impacts of this bill. The legislation would disrupt the IMB business model, drive up mortgage lending costs, and make the affordability crisis worse for CA homebuyers. If you have not already responded, click here to take action now.
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.
For more information about the MAA alert, please contact Jamey Lynch, AMP at 202-557-2818 or Margie Ehrhardt at (202) 557-2708.
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.
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 – June 3
• Fundamentals of Loss Mitigation for Residential Servicers – June 3
• Strategies to Improve Retail Mortgage Production – June 5
• 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
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.
