Advocacy Update: Congress Passes Funding Bill Through September; NFIP Also Extended
Congress Passes Funding Bill Through September; NFIP Also Extended
Following passage in the House of Representatives on Tuesday (217-213 vote), the full Senate on Friday passed (54-46) an identical Continuing Resolution (CR) that averts a government shutdown and extends Fiscal Year (FY) 2024 funding levels through September 30, 2025.
• The legislation includes a slight increase in military spending, a $13 billion cut in nondefense spending, and importantly, extends the National Flood Insurance Program (NFIP) also until September 30.
Why it matters: President Donald Trump is expected to sign the bill into law ahead of tonight’s 11:59 p.m. deadline, ensuring that all the various government-supported segments of the mortgage market, including the Department of Housing and Urban Development, (Ginnie Mae and FHA included), Department of Agriculture, and the Department of Veterans Affairs continue to operate virtually uninterrupted.
• MBA advocated strongly for the flood insurance extension on both sides of the Hill and with both political parties and will continue to call for reforms to, and a long-term reauthorization of, this critical program as discussions between lawmakers continue.
What’s next: Both the House and Senate are now on recess until March 24. With government funding set for the remainder of FY 2025, lawmakers will set their focus on raising the debt limit before early summer. Additionally, House and Senate GOP leaders will continue negotiations on tax and spending policy, with the goal of passing an identical budget resolution in the coming months to unlock the reconciliation process. This would allow legislation, including tax policy changes, to pass the Senate with a simple majority rather than the more frequently required 60-vote supermajority.
• MBA will continue to engage with key congressional leaders and tax writers to ensure real estate finance priorities are reflected in any legislative outcomes.
For more information, please contact Bill Killmer at (202) 557-2736, Pete Mills at (202) 557-2858 or Jamie Woodwell at (202) 557-2936.
MBA Witness Testifies at House Veterans’ Affairs Subcommittee on Economic Opportunity Legislative Hearing
MBA played a central role at last week’s House Veterans’ Affairs Committee (HVAC) Economic Opportunity Subcommittee hearing, with Elizabeth Balce, Executive Vice President of Servicing, Carrington Mortgage Services, testifying on behalf of the association.
• Hearing details can be found here. Click here for Balce’s written statement and here for her oral statement.
• The hearing focused on critical reforms to the VA Home Loan Program, including concerns over the future of the VA Servicing Purchase (VASP) program and the need for a permanent partial claim solution.
Why it matters: MBA’s testimony reinforced the importance of aligning VA’s loss mitigation tools with those offered to borrowers with mortgages backed by the Federal Housing Administration (FHA) and Fannie Mae and Freddie Mac (the GSEs).
• Balce highlighted the need for a permanent partial claim option to prevent foreclosures and provide a more effective alternative to loan modifications. She also defended VASP as a necessary – though imperfect and temporary – tool to help veteran homeowners avoid foreclosure.
Go deeper: Throughout the hearing, members of the subcommittee asked Balce about the potential impact of limiting VASP and the broader need for permanent loss mitigation options. She explained that an abrupt end to VASP would leave many veterans with limited alternatives, often resulting in payment increases or foreclosures. She also cautioned that proposals to cap VASP at 250 loans per year would be harmful, as the demand for loss mitigation assistance far exceeds that number.
• Balce’s testimony emphasized the importance of maintaining flexible, sustainable solutions for veteran borrowers.
What’s next: MBA will continue working with key HVAC Members and staff to provide input as partial claim legislation is further refined and potentially moves forward, emphasizing the key policy elements of Balce’s testimony.
For more information, please contact Madisyn Rhone at (202) 557-2741, Bill Killmer at (202) 557-2736, and/or Brendan Kelleher at (202) 557-2779.
Senate Confirms William Pulte as FHFA Director
On Thursday the full Senate voted (56-43) to confirm William Pulte as Director of the Federal Housing Financing Agency (FHFA). Last week, Pulte garnered bipartisan support for his nomination when the Senate Banking Committee voted in a bipartisan fashion (15-9) to advance his confirmation to the full Senate for a floor vote.
What they’re saying: MBA’s President and CEO Bob Broeksmit, CMB, congratulated Director Pulte in a press statement, stating, “Our members stand ready to work with Director Pulte and his team, Fannie Mae and Freddie Mac staff, the Federal Home Loan Banks, and other industry stakeholders to increase affordable and sustainable homeownership and rental housing opportunities for all Americans while ensuring a robust secondary mortgage market for single-family and multifamily lenders of all sizes and business models.”
What’s next: Director Pulte will lead FHFA’s numerous efforts that impact MBA members, including any actions taken jointly with the Treasury Department to release the GSEs from their current conservatorship. Additional issues of note include the next steps on credit reporting and credit score reforms and determining the future of GSE pilot programs.
For more information, please contact George Rogers at (202) 557-2797, Ethan Saxon at (202) 557-2913, or Sasha Hewlett at (202) 557-2805.
REGISTER: Town Hall with MBA Leadership: The New Administration’s First 100 Days
This Thursday, March 20, at 3:00 p.m. ET, MBA President and CEO Bob Broeksmit, CMB, and MBA leaders engaged on policy issues, will host another town hall webinar on the latest developments in the single-family and commercial/multifamily arenas under the Trump administration and MBA’s ongoing work on them.
• Register here for MBA’s new series covering the first 100 days of the Trump administration. Attendees can send questions beforehand to First100Days@mba.org.
Why it matters: MBA continues to monitor ongoing developments at the federal agencies and is engaging appropriately with the Trump administration to attempt to ensure agencies’ activities and future priorities are aligned to promote investment and growth in real estate markets.
• Federal agencies were directed to develop and send by March 13 Agency Reduction in Force (RIF) and Reorganization Plans (ARRPs) to the Office of Management and Budget (OMB) and Office of Personnel Management (OPM).
What’s next: MBA remains actively engaged with the senior appointees and key staff in place at all agencies that impact the industry and continues to:
• Advocate for the continuation of programs and policies that benefit the real estate finance market, borrowers, and the industry;
• Recommend sensible changes that lower cost of lending, promote competition, and pass savings along to prospective homeowners and renters and ensure the continued support for commercial and multifamily investment; and
• Warn against potential actions that would lead to disruptions in the single-family and commercial/multifamily markets.
For more information, please contact Bill Killmer at (202) 557-2736 or Pete Mills at (202) 557-2878.
Andrew Hughes Nominated as HUD Deputy Secretary
Last Tuesday, President Trump nominated Andrew Hughes to serve as the next Deputy Secretary at HUD.
• MBA’s Broeksmit released a statement congratulating Andrew Hughes on his nomination.
Why it matters: Hughes served as Chief of Staff for former HUD Secretary Ben Carson during the first Trump administration. This experience should provide him with a useful perspective on methods to help improve HUD’s operations, including its programs to support homeownership and rental housing opportunities.
What’s next: MBA will continue to engage with HUD’s leadership to address challenges and opportunities within the agency, including improving technology and efficiency, and ensuring that FHA remains a viable financing option for both single-family and multifamily markets.
For more information, please contact Pete Mills at (202) 557-2858.
Senate Banking Committee Holds Hearing on Housing Affordability
On Wednesday, the Senate Banking Committee held a hearing on housing affordability and the reasons behind the challenges, including supply shortages, regulatory barriers, and the role of the federal government. Republicans on the committee discussed shrinking federal programs, reducing homeownership barriers, and using market-based solutions. Democrats underscored the federal government’s role in expanding affordable housing, providing housing assistance, ensuring equity, and protecting renters.
• Witnesses discussed methods to increase housing supply, the need for reduced fees and increased use of technology, local zoning restrictions, homelessness, and affordability issues, among others.
• A summary of the hearing, including more information about the witness testimony, may be found here.
Why it matters: The hearing showed there is bipartisan agreement that more needs to be done to increase housing supply. In addition, senators discussed their legislative ideas, many of which have bipartisan support.
Go deeper: Banking Chair Tim Scott (R-SC) discussed his Road to Housing Act, which has targeted reforms to reduce regulatory barriers, streamlines development processes, and seeks to make sure taxpayer dollars are used effectively. MBA led a joint trades letter in support of the Road to Housing Act in the last Congress. Ranking Member Elizabeth Warren (D-MA) listed the names of ten bills of committee members, mostly bipartisan, that could be part of an eventual mark-up.
What’s next: MBA will continue to actively engage the members of the Senate Banking Committee and the full Congress on advancing legislation that addresses supply and affordability challenges.
For more information, please contact George Rogers at (202) 557-2797 or Ethan Saxon at (202) 557-2913.
Freddie Mac Releases Q4 2024 Loan Delivery and Repurchase Trend Reporting
In response to MBA advocacy and member feedback, Freddie Mac recently began publication of quarterly loan delivery and repurchase trend reporting.
• This reporting is a result of MBA’s ongoing engagement with Freddie Mac to reduce repurchase risk and ensure appropriate application of the rep and warrant framework.
Go deeper: The first cut of data, reported as of Q4 2024, contains a summary of total loans delivered per quarter, closed repurchase demands by review type, and a breakdown of their associated defect categories.
• MBA applauds Freddie Mac for continuing to explore ways to improve the QC process and mitigate repurchase risks on performing loans. Freddie Mac also recently reported that about one-third of its seller-servicers are participating in the performance-based fee QC program.
Why it matters: MBA has led the industry over the past two years and engaged with the GSEs as they work to improve the quality control process specifically as it relates to repurchase demands on performing loans. Media reporting of repurchase data gathered from a variety of disparate sources has resulted in confusion and mis-reporting of repurchase trends that has detracted from the actual progress being made in this space.
• Standardized data for each Enterprise can serve as a trusted source for assessing repurchase levels and would improve lender’s ability to benchmark their performance to industry.
What’s next: Fannie Mae is expected to publish a similar report in the months ahead. MBA will continue to support the development of positive and meaningful changes to the QC process and will remain engaged with FHFA, the GSEs, and members to ensure high quality underwriting and appropriate application of the rep and warranty framework.
For more information, please contact Sasha Hewlett at (202) 557-2805.
Key Connecticut Committee Removes IMBs from CRA Legislation
Last week, legislation (SB-1398) that contained language to establish a Community Reinvestment Act (CRA)-style mandate for independent mortgage banks (IMBs) was amended to remove the IMB provision. SB-1398 was the subject of a Senate Banking Committee hearing, and a unanimous vote of the Committee members amended the bill to strike the MBA-opposed provisions extending CRA coverage to IMBs. Importantly, the Connecticut Department of Banking had previously delivered a statement in opposition.
• The Department noted significant unfunded cost implications, stating that the examination requirement in the proposed bill “would place extraordinary burdens on the Department, which – at its current staffing levels – the Department would be unable to meet.”
Why it matters: CRA-style requirements for IMBs represent a “solution in search of a problem” and do not recognize the incompatibility of the CRA with the business models of IMBs and their historical lending activities. IMBs do not have deposits to reinvest; do not have access to direct government support; already engage in sustainable lending in low- to moderate-income (LMI) communities; and are subject to robust oversight and supervision in every state where they operate (as well as from federal regulators).
What’s next: MBA will work with its state partners to oppose any attempt to implement CRA for IMBs.
For more information, please visit MBA’s State CRA resource center or contact William Kooper at (202) 557-2737 or Liz Facemire at (202) 557-2870.
Maryland Senate Finance Committee Approves Bill to Address Trust Licensing Issue; Industry Advocacy Continues
Late Thursday, the Maryland Senate Finance Committee unanimously passed SB-1026, a critical piece of MBA-supported legislation. This bill, along with its companion HB-1516, aims to address the Maryland Office of Financial Regulation’s (OFR) January 10, 2025, guidance and emergency regulations stemming from the Estate of Brown v. Ward court ruling.
• The legislation is supported by OFR, which extended the enforcement deadline to July 6, 2025, following efforts by an MBA-led coalition. The Senate bill could be considered by the full chamber as early as today.
Why it matters: The OFR’s initial policy interpretation significantly expanded the court’s opinion to include mortgage trusts, raising urgent concerns for secondary mortgage market participants. The proposed legislation would create necessary licensing exemptions in state law and establish a one-year study commission to review the issue and make recommendations to the Legislature.
Mortgage Action Alliance (MAA) members in Maryland have been actively urging their representatives to expedite the consideration and enactment of this legislation. Also, an industry coalition submitted a comment letter to OFR in January, strongly encouraging the rescission of its guidance and regulations.
What’s next: MBA and the Maryland Mortgage Bankers and Brokers Association (MMBBA) are working with member companies and industry association partners to advocate for a swift resolution to this issue, which has caused significant disruption in the Maryland residential mortgage markets. If you are a Maryland MAA member please take action here.
For more information, please contact William Kooper at (202) 557-2737 or Justin Wiseman (202) 557-2854.
Attend MBA’s National Advocacy Conference on April 8-9; Over 400 Advocates Registered
Join us in Washington, D.C. to meet with key policymakers, network with colleagues across the industry, and hear from policy experts on the topline issues impacting the industry. Key advocacy issues to be covered will include housing tax policy, trigger leads, legislation to increase housing supply, technology-related issues, the cost and availability of insurance, and more.
While other guests will be confirmed in the coming days, currently scheduled speakers for the conference include GOP Conference Chair Congresswoman Lisa McClain (R-MI), key House Financial Services Committee member Ritchie Torres (D-NY), and managing editor of Hotline at National Journal Kirk A. Bado.
An exclusive reception will be held on Tuesday, April 8, at the Renwick Gallery of the Smithsonian American Art Museum. Lend your voice to our efforts and bring your expertise and experiences to the table.
• Check out MBA’s group passes pricing.
Why it matters: Your participation at NAC ensures that members of the 119th Congress and the administration will better understand how proposed legislation affects your customers, as well as your employees and the communities you (and they) serve.
What’s next: MBA will continue to advocate for issues impacting the real estate finance industry.
For more information, please contact Jamey Lynch, AMP, at (202) 557-2818.
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:
• Drilling into Mortgage Accounting – April 9
• AI Voice Agents and Use Cases for Mortgage Lending – April 10
• Loan Level Accounting – April 16
• Social Media Compliance: Identifying Potential RESPA Violations in Digital Advertising – April 22
• Tech Trends Shaping the Future of Mortgage Lending – May 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.
