Advocacy Update: REGISTER: Town Hall with MBA Leadership–The New Administration’s First 100 Days
REGISTER: Town Hall with MBA Leadership: The New Administration’s First 100 Days
Thursday March 6, at 3:00 p.m. ET, MBA President and CEO Bob Broeksmit, CMB, and MBA leaders engaged on policy issues, are hosting a 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 is monitoring the 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.
• Ongoing media reports on actions from the Department of Government Efficiency (DOGE), and memos/directives from the Office of Management and Budget (OMB), the Department of Housing and Urban Development (HUD), the Consumer Financial Protection Bureau (CFPB), and others, have indicated that significant changes have occurred and/or are underway regarding staffing, rulemaking, funding, and/or contract cancellations at federal agencies.
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.
What’s next: MBA members will also receive the latest on the industry’s top priorities and issues to be covered at MBA’s upcoming National Advocacy Conference (NAC), taking place April 8-9 in Washington, D.C. Key advocacy issues to be covered will include the potential for GSE release, trigger leads, housing tax policy, legislation to increase housing supply, property insurance, and more.
For more information, please contact Bill Killmer at (202) 557-2736 or Pete Mills at (202) 557-2878.
FHFA Director Nominee William Pulte and CFPB Director Nominee Jonathan McKernan Testify at Senate Banking Committee Hearing
On Thursday, the Senate Banking Committee held a hearing to consider a slate of Executive Branch nominees, including the nominations of William Pulte to be the Director of the Federal Housing Financing Agency (FHFA) and Jonathan McKernan to be the Director of the CFPB.
In response to questioning at the hearing, Mr. Pulte notably testified about the GSEs by saying, “While their conservatorships should not be indefinite, any exit from conservatorship must be carefully planned to ensure the safety and soundness of the housing market without upward pressures on mortgage rates.” He also said, “If confirmed, my number one mission will be to strengthen and safeguard the housing finance system. Safe and sound housing markets are the foundation of American homeownership. Additionally, we must ensure that home inventory in this country goes to Americans.”
Ranking Member Elizabeth Warren (D-MA) and other Democratic committee members voiced strong concerns regarding Mr. McKernan’s commitment to the CFPB’s mission, given OMB and DOGE actions and statements about reducing the Bureau’s worker headcount and activities. Mr. McKernan consistently affirmed his intention to “follow the law” if confirmed, while refraining from making specific commitments.
A summary of the hearing can be found here.
Go deeper: When Senator Thom Tillis (R-NC) asked Mr. McKernan whether “regulation by enforcement” is an effective regulatory approach, Mr. McKernan strongly disagreed, saying it “offends our basic notions of fairness.” He cited a panel decision of an appellate federal court involving a mortgage servicer where CFPB applied a new rulemaking that in McKernan’s words “was 180 degrees opposite the prior agency’s rule, and they applied that rule retroactively beyond the statute of limitations.” McKernan testified that the D.C. Circuit said this violates “bedrock principles of due process.”
Why it matters: If confirmed, Mr. McKernan will play a lead role in determining which mortgage-related regulations may be reconsidered by the Bureau through the notice and comment regulatory process, as well as the scope and nature of CFPB’s enforcement activities. Similarly, Mr. Pulte will play a pivotal role on issues pertinent to the housing GSEs that impact MBA’s members, including the potential for release of the Fannie and Freddie from their conservatorship status.
What’s next: Both nominees will have to answer a multitude of questions for the record (QFRs) submitted by a bipartisan group of Senators on the Banking Committee, potentially including some on topics suggested by the MBA. After those written responses are received, Senate Banking Chair Tim Scott (R-SC) can schedule a full committee vote on their nominations. If reported favorably, they will be scheduled for a confirmation vote by the GOP leadership. The timing for that full Senate floor vote consideration remains unclear at this time.
For more information, please contact George Rogers at (202) 557-2797 or Ethan Saxon at (202) 557-2913.
House Adopts GOP Budget Resolution
Last week, in a significant step for House Republicans, the House of Representatives passed its budget resolution yesterday by a narrow 217-215 vote, with Rep. Thomas Massie (R-KY) joining Democrats in opposition. The resolution, a priority for Speaker Mike Johnson (R-LA) and House GOP leadership, now moves to the Senate, where a path to reconcile differences between competing House and Senate budget resolutions remains uncertain.
Key Takeaways:
• The House budget resolution provides a framework for tax, spending, and economic policy but does not carry the force of law.
• Differences between the House and Senate GOP approaches may complicate efforts to pass an identical resolution, which is necessary to unlock the reconciliation process and begin a major tax policy debate later this year.
• Senate Republicans, including Majority Whip John Thune (R-SD), have raised concerns that the House resolution does not provide sufficient flexibility to make all of the 2017 Tax Cuts and Jobs Act (TCJA) provisions permanent.
• Speaker Johnson has indicated he wants “as few changes as possible” to the House resolution in a fully reconciled budget resolution that can clear both chambers of Congress.
• Ongoing negotiations between House and Senate GOP leaders, as well as discussions with the White House, will shape next steps.
Why it matters: Budget resolutions serve as internal congressional guideposts for tax and spending policy. If and/or when the House and Senate can agree on an identical resolution, the reconciliation process can begin—allowing legislation, including potential tax policy changes, to pass the Senate with a simple majority rather than the more frequently required 60 vote supermajority.
For MBA, the tax implications of reconciliation are critical, particularly in the debate over expiring TCJA provisions where real estate-related “pay-fors” could potentially be tapped. Ensuring a stable and pro-growth real estate finance tax framework remains a key priority.
What’s next: Timing for Senate consideration of the House budget resolution remains unclear, with continued intra-party negotiations expected. If agreement on a unified budget resolution proves challenging, alternative legislative approaches—such as floating a potential set of smaller, bipartisan tax measures—may emerge. MBA will continue engaging with key congressional leaders and tax writers to ensure real estate finance priorities are reflected in any legislative outcomes.
For more information, please contact George Rogers at (202) 557-2797, Ethan Saxon at (202) 557-2913, Madisyn Rhone at (202) 557-2741, or Bill Killmer at (202) 557-2736.
FHA Waives Flood Elevation Requirement in Minimum Property Standards
Last Friday, FHA issued a temporary partial regulatory waiver and a Single-Family Housing Handbook 4000.1 waiver to its minimum property standards (MPS) requirements.
• The regulatory waiver applies to HUD MPS guidance (24 CFR § 200.926d(c)(4)) on drainage and flood hazard exposure, which sets new construction flood elevation requirements for FHA-insured residential structures.
• The Handbook 4000.1 waiver affects New Construction eligibility criteria in Sections II.A.1.b.iv(A)(1)(b) and II.B.2.b.iii(A)(4)(b).
Why it matters: In alignment with President Trump’s January 20, 2025, Executive Order on “Delivering Emergency Price Relief for American Families and Addressing the Cost-of-Living Crisis,” which calls for actions to reduce housing costs and expand supply, this waiver prevents the new MPS elevation standard from applying to new construction requirements. MBA has expressed concern about MPS, highlighting that it reduces land availability, increases construction costs, exacerbates housing shortages, and leads to higher home prices for FHA-insured single-family properties.
What’s next: MBA will work with the FHA to advocate for policies that address housing challenges, ensuring regulatory changes support sustainable development and risk management.
For more information, please contact John McMullen, AMP, at (202) 557-2706.
MBA Leads Support for Legislation to Address Maryland Trust Licensing Issue; MAA Launches Call to Action
Last week, MBA was joined by the Maryland Mortgage Bankers Association (MMBBA) and the Metro Washington DC MBA on a support letter to sponsors of companion bills (HB-1516/SB-1026).
• The bills have been endorsed by the Maryland Office of Financial Regulation (OFR) and would address its January 10, 2025, guidance and emergency regulations to facilitate compliance with the state Appellate Court’s ruling in the case of the Estate of Brown v. Ward.
• Also last week, MBA’s Mortgage Action Alliance (MAA) launched a call to action to provide MAA members living in Maryland a way to help advocate for speedy consideration, passage, and enactment of this important legislation.
Why it matters: OFR’s policy has raised urgent issues for entities involved in the secondary mortgage market because its interpretation significantly (and unnecessarily) expanded on the Court’s opinion to include mortgage trusts. OFR has delayed implementation of the bills until July 6, 2025, which is the result of work done by an MBA-led coalition. The legislation would create the necessary licensing exemptions to state law and also create a one-year study commission to review the issue and make recommendations to the Legislature.
• The industry coalition submitted a comment letter to OFR in January that strongly encouraged it to rescind its guidance and regulations.
What’s next: MBA and MMBBA are working to get the bills considered in committee as quickly as possible.
For more information, please contact William Kooper at (202) 557-2737 or Justin Wiseman (202) 557-2854.
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:
• Mastering Compliance and Efficiency with Digital Reverifications – March 4
• Drilling into Mortgage Accounting – April 9
• AI Voice Agents and Use Cases for Mortgage Lending – April 10
• Loan Level Accounting – April 16
• 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.
