MBA Advocacy Update: MBA Responds to OMB RFI on Deregulation
MBA Responds to OMB RFI on Deregulation
Last Monday, MBA submitted a comment letter in response to the Office of Management and Budget’s (OMB) request for information (RFI) on ideas for deregulation. MBA suggested that several rules should be rescinded in their entirety, including the Consumer Financial Protection Bureau’s Nonbank Registry rule. MBA also suggested that the administration amend several other rules to better address the current realities of the mortgage market.
Go deeper: MBA supports the rulemaking process to provide clear rules of the road through a stable and informed process. In repealing these rules, agencies should continue to use existing legal avenues – for example, through sufficient notice and comment – to effectuate these rule recissions in a way that considers informed feedback by industry.
What’s next: MBA will continue to monitor this deregulation effort and provide updates as necessary.
For more information, please contact Justin Wiseman at (202) 557- 2854 or Alisha Sears at (202) 557-2390.
CFPB Announces Proposed Rescission of Nonbank Registry Rule Following Persistent MBA Advocacy
On Tuesday, the Consumer Financial Protection Bureau (CFPB) announced a proposal to rescind its Nonbank Registration Regulation that was issued on June 3, 2024 (the so-called Repeat Offender Registry).
Why it matters: MBA applauds the CFPB’s proposal and commends them for being receptive to persistent advocacy against the implementation of this misguided rule.
Go deeper: MBA since last summer has been very vocal about the duplicative nature and regulatory burden on registrants that already have their information reported in the NMLS Consumer Access database, the short implementation timelines, and the insufficient showing of need for such a registry.
• MBA identified this rule, among many others, in this week’s [OMB letter], and earlier this year sent a letter to the CFPB urging it to take immediate action to halt any further work on the rule (which they did).
What’s next: MBA’s response in a comment letter will support the recission of the rule. Comments are due by June 13. 2025.
For more information, please contact Justin Wiseman at (202) 557-2854 or Alisha Sears at (202) 557- 2930
House GOP Seeks Consensus After Tax Package Clears Committee
Early Wednesday morning, after dozens of amendment votes during a marathon markup session, House Ways and Means Committee Chairman Jason Smith’s (R-MO) tax policy package amendment (and the Committee’s reconciliation instructions) were both passed favorably, both by party-line votes of 26 to 19. Here is the letter MBA sent to the Ways and Means members prior to the markup.
Why it matters: The $3.8 trillion package is slated for debate on the full House floor next week – should GOP leaders be able to forge a consensus on a number of outstanding tax provisions and spending cuts with individual House Republican Members.
• The Ways and Means product – one of the threshold efforts needed to enable Republicans to extend the 2017 Trump tax reforms – protects almost all of the current law priority items (both commercial/multifamily and residential) identified by MBA’s Board-approved Tax Task Force.
What’s next: House Speaker Mike Johnson (R-LA) must re-shape and then shepherd the package through the House Budget and Rules Committees (today and early next week) prior to holding a potential floor vote prior to Memorial Day. Key issues regarding changes to major entitlement programs and lifting the cap on the state and local tax (SALT) deduction remain bottlenecks to reaching a Republican consensus.
For more information, please contact Bill Killmer at (202) 557-2736, Madisyn Rhone at (202) 557-2741 or Rachel Kelley at (202) 557- 2816.
USDA Finalizes Rule to Expand Manufactured Housing Access
Recently, the U.S. Department of Agriculture (USDA) published a final rule updating its manufactured housing provisions for the Section 502 Direct and Guaranteed Loan Programs. The rule adopts several key recommendations from an October 2023 joint comment letter submitted by MBA, MHI, and CHLA. Those changes specifically include:
• Nationwide Expansion of Existing Manufactured Home Financing
• Elimination of Dealer Approval Requirements
• Revision of “Manufactured Home” Definition
Why it matters: The final rule expands access to financing for existing manufactured homes to all 50 states, removes dealer approval requirements for direct loans, and updates the definition of “manufactured home” by eliminating outdated thermal performance standards. These changes reduce administrative burdens and open more pathways to affordable homeownership in rural communities.
What’s next: MBA will continue working with USDA and stakeholders to support smooth implementation and advocate for additional manufactured housing reforms that increase access and efficiency.
For more information, please contact John McMullen, AMP at (202) 557-2706.
House Financial Services Subcommittees Hold Housing/Banking Hearings
On Wednesday, the House Financial Services Committee’s Housing & Insurance (H/I) Subcommittee held a hearing entitled Expanding Choice and Increasing Supply: Housing Innovation in America, while its Financial Institutions Subcommittee held a hearing entitled Enhancing Competition: Shaping the Future of Bank Mergers and De Novo Formation. The H/I subcommittee hearing was focused on identifying affordable housing options through the enhanced production of more manufactured housing.
Go deeper: The Financial Institutions subcommittee explored regulatory challenges and potential reforms for new bank creation and the bank merger review process via several legislative discussion drafts aimed at tackling those issues.
• Summaries of the two hearings can be found here and here.
Why it matters: There was broad bipartisan consensus amongst H/I subcommittee members that housing affordability remains a salient issue and that alternative forms of building production could be an effective way to increase housing supply in certain markets. The FI subcommittee members were focused on taking steps to strengthen competition and promote innovation in banking by improving the merger process and supporting de novo bank formation.
What’s next: MBA will continue to advocate for housing supply and banking innovation solutions on behalf of our members in the weeks and months ahead.
For more information, please contact Madisyn Rhone at (202) 557-2741 or Rachel Kelley at (202) 557- 2816.
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:
• How to Rapidly Respond to Borrowers with Clear & Empathetic Communications During Natural Disasters – May 20
• Cybersecurity in Mortgage, Part II: Ensuring Your Organization is Prepared and Resilient – May 22
• 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
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.
