
MBA Advocacy Update: Latest on MBA-Supported Trigger Leads Bill; CFPB, VA and Ginnie Mae News

MBA-Supported Trigger Leads Bill Noticed in House Subcommittee Hearing
On Tuesday, the House Financial Services Committee’s (HFSC) Subcommittee on Financial Institutions (FI) held a hearing titled, “Regulatory Overreach: The Price Tag on American Prosperity,” where MBA’s supported legislation (H.R. 2808, the Homebuyers Privacy Protection Act of 2025) to curb the abusive use of trigger leads was “noticed” and discussed by a witness and several members of Congress in attendance.
• Find the full summary here; watch the hearing here.
Go deeper: The legislation has again been offered (and re-crafted) by Reps. John Rose (R-TN) and Ritchie Torres (D-NY) and Senators Bill Hagerty (R-TN) and Jack Reed (D-RI) – the same bipartisan/bicameral combination of champions who introduced companion legislation during the last Congress. A substantially similar bill passed the full Senate last year by Unanimous Consent.
Why it matters: Following a process known as “regular order,” H.R. 2808 was “noticed” (identified as one of several bills pertinent to the hearing’s subject matter). Several HFSC members from both sides of the political aisle, namely FI Subcommittee Ranking Member Bill Foster (D-IL), lead bill sponsor Representative John Rose (R-TN), Representative William Timmons (R-SC), and Representative Joyce Beatty (D-OH).
What’s next: The Homebuyers Privacy Protection Act is expected to be considered during an HFSC markup session in late May. MBA will continue to push for the bill’s advancement – as reintroduced in the 119th Congress – in both the House and Senate as soon as possible.
Take action! Join the Mortgage Action Alliance (MAA) call to action and tell your elected officials to co-sponsor – and push for swift action on – H.R. 2808 and S. 1467.
For more information, please contact Madisyn Rhone at (202) 557-2741 or Rachel Kelley at (202) 557- 2816.
D.C. Circuit Court Bars Mass Layoffs at CFPB
On Monday, the U.S. Circuit Court of Appeals for the District of Columbia upheld a temporary injunction issued by Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia, enjoining the Consumer Financial Protection Bureau (CFPB) from firing roughly 1,400 of their employees.
• This decision restores the full original ban on layoffs, preventing further reductions in force (RIF). Previously, the Circuit Court allowed the CFPB to conduct layoffs following a “particularized assessment.”
Go deeper: Previously (on April 11), a three-judge panel for the D.C. Circuit gave the CFPB the freedom to terminate employees if, after a “particularized assessment,” the agency determined that the employees to be terminated would be “unnecessary to the performance of [the agency’s] statutory duties.” Then, the CFPB issued a RIF, effectively terminating 90 percent of agency employees. After plaintiffs filed an emergency motion to show cause as to how the RIF did not violate the district court’s preliminary injunction, the CFPB sought relief from the D.C. Circuit in the form of clarification of the particularized assessment requirement or enforcement of its order staying the applicable paragraph of the preliminary injunction.
• The scope of layoffs was larger than expected based on recent discussions held by MBA staff with Administration officials. MBA believes a downsized CFPB should maintain sufficient resource levels to conduct core statutory functions, in particular enough rule-writing personnel/capabilities to revise and reform certain Director Chopra- and Cordray-era rules, as well as sustaining baseline levels of supervision, enforcement, and market monitoring functions required by statute.
What’s next: The D.C. Circuit has placed the CFPB’s appeal on an expedited track and will hear oral arguments on May 16, 2025. After hearing oral arguments and reviewing the parties’ briefings, the D.C. Circuit will enter a ruling on the merits of the parties’ arguments as to the validity of Judge Jackson’s preliminary injunction. MBA will continue to monitor news from the CFPB and provide updates to members.
For more information, please contact Justin Wiseman at (202) 557- 2854 or Alisha Sears at (202) 557-2390.
CFPB Files Joint Stipulation to Dismiss Appeal of Update to Examination Manual
On Wednesday, the CFPB filed a joint stipulation to dismiss its appeal with several banking trade groups in a case over whether the CFPB could reinstate a 2022 policy that expanded the scope of the agency’s anti-discrimination oversight in its Examination Manual.
• The motion asked the Fifth Circuit Court of Appeals to dismiss the appeal with prejudice, with both sides covering their own attorney fees and legal costs.
Go deeper: This announcement is part of a wider trend of the CFPB reversing its position on Biden-era enforcement and regulatory actions. Previously, the CFPB announced that it is seeking to vacate and set aside a $105,000 judgment against Townstone Financial, a Chicago mortgage broker accused of redlining.
What’s next: MBA will continue to monitor news about the CFPB’s existing enforcement actions and keep members informed about any changes.
For more information, please contact Justin Wiseman at (202) 557- 2854 or Alisha Sears at (202) 557-2390.
House Republican Reconciliation Package Continues to Take Shape
On Wednesday, the full House Financial Services Committee (HFSC) voted along party lines (30-22) to advance its portion of the House Republican reconciliation package, which is expected to include sweeping tax, energy, and border policy changes. The HFSC Republicans project their section of the emerging reconciliation bill would produce roughly $1 billion in the savings they were tasked with finding.
Go deeper: The proposal includes specific changes that would cap the amount of funding the CFPB can tap at 5 percent of the Federal Reserve’s operating expenses — down from the current limit of 12 percent. The measure would also achieve savings by folding the Public Company Accounting Oversight Board (the non-profit corporation created by the Sarbanes/Oxley Act of 2002 to oversee the audits of US-listed public companies) into the Securities and Exchange Commission (SEC).
Why it matters: The committee’s legislation will now be folded into the broader reconciliation bill, which will be compiled by the House Budget Committee. The HFSC proposed cuts will be much smaller than the hundreds of billions in savings/possible revenue increases expected to be delivered in the coming weeks by other House panels, like the Ways and Means (think tax policy changes) and Energy and Commerce Committees (think Medicaid program reductions).
What’s next: Both the Ways and Means and Energy and Commerce panels are expected to meet by mid-May to complete their significant portions of the House reconciliation exercise. The Ways and Means Committee actions will represent the unveiling of that panel’s proposed tax policy changes to extend major portions of the 2017 Tax Cuts and Jobs Act. The emerging Ways and Means “Committee Print” will also purportedly include “revenue raisers” that could impact the business operations of MBA member real estate finance-related firms going forward (if enacted).
• The various Senate standing committees – and the full Senate – will complete its parallel portion of this reconciliation exercise (likely this summer) after the full House clears the package to be assembled by its Budget Committee (possibly by Memorial Day). MBA staff (with guidance from the association’s Board-appointed Tax Task Force) will continue to engage with lawmakers and key staff to advocate for our industry’s tax priorities.
For more information, contact Bill Killmer at (202) 557-2736.
VA Delays PPM System Deadline for Lender Validations and Renewals
The Department of Veterans Affairs (VA) agreed to a request by MBA to delay the April 30, 2025, deadline for lenders and third-party originators to complete their annual validation or renewal through the Program Participant Management (PPM) system.
• The delay applies to supervised and non-supervised lenders without automatic authority (validation) as well as non-supervised lenders with automatic authority (renewal).
• Due to ongoing technical issues experienced by some users, the VA has clarified that lenders and agents will not be deactivated if they fall past due. Furthermore, all renewal due dates previously set before September 1, 2025, will be reset to that date within the PPM system.
Why it matters: Originally announced in September 2024, the new PPM system is designed as a self-service platform that allows lenders to manage their profile information, fulfill annual renewal requirements, submit requests such as applications for automatic authority, underwriter nominations, and agent recognition requests, and pay associated fees.
What’s next: MBA will continue to engage with the VA to monitor the situation and provide further updates, as released.
For more information, please contact Monique Ellis at (202) 557-2856 or Darnell Peterson at (202) 557-2922.
Ginnie Mae Makes Temporary Changes to Buydown and High Balance Loan Eligibility for Multiple Issuer Pools
On Thursday, Ginnie Mae released an All Participants Memo (APM 25-02) outlining temporary changes to buydown and high balance loan requirements for multiple issuer pools (MIP).
• Effective May 19, 2025, to ensure buydown loans do not make up greater than 10% of the aggregate original principal balance of the MIP, Ginnie Mae is temporarily revising requirements to apply the 10% limit at the loan package level. In addition, high balance loans may not exceed 10% of the aggregate original principal balance of the loan package, and loans that are both buydowns and high balance will be included in the calculation for both limits.
• Ginnie Mae is also correcting the eligibility requirements for buydown mortgage pools (C BD and X BD) to reflect that high balance loans are eligible collateral.
Why it matters: Ginnie Mae states that this is in response to recent market conditions, which have led to an increase in buydown loans. MBA has raised concerns that applying these limits on the individual issuer level (in multi-issuer pools) with less than three weeks of lead time could cause issues for some members. The effective date does not allow for adequate pipeline protection and while this is a temporary change, it may cause liquidity constraints for smaller issuers.
What’s next: Ginnie Mae expects this policy to be in effect for 6-9 months and also plans to release additional guidance on buydown limits for non-standard buydowns. MBA continues to evaluate the effects of these changes and will remain engaged with Ginnie Mae to minimize any negative impacts to the industry.
For more information, please contact Sasha Hewlett at (202) 557-2805.
California Assembly Committee Advances CRA Legislation Opposed by MBA, CMBA
On Monday, the California Assembly Committee on Banking and Finance voted to approve AB-801, which would apply Community Reinvestment Act (CRA) mandates to banks, credit unions, residential mortgage lenders, and money transmitters licensed by the state. The vote was 5-1 with three abstentions.
Go deeper: The legislation includes multiple requirements:
• institutions must assess community financial needs and submit findings by January 1, 2029;
• the Commissioner of the Department of Financial Protection and Innovation (DFPI) must develop regulations that assess each covered financial institution at least every three years;
• DFPI and the Civil Rights Department are to conduct a disparity study every three years to identify gaps in access to financial services; and
• a Community Reinvestment Fund would be established with fines as the funding source.
Institutions rated “needs to improve” or “substantial noncompliance” must submit improvement plans within 180 days. Lastly, administrative penalties of up to $100,000 can be imposed for repeated non-compliance.
Why it matters: MBA and the California MBA remain strongly opposed to state or federal bills to apply CRA to IMBs and oppose this proposal. The organizations collaborated on a message provided to the Committee before its meeting and vote. MBA also opposes any effort by policy makers to contort CRA into a fair housing exam as this bill attempts.
What’s next: MBA, the California MBA, and their members were successful in 2021 in defeating similar legislation, and robust member engagement will again be required in the weeks and months ahead. Both associations will continue to collaborate with industry partners and industry professionals should enroll or renew their enrollment in the Mortgage Action Alliance in advance of a call to action if the legislation is considered by the full Assembly.
For more information, please visit MBA’s State CRA Resource Center or contact William Kooper at (202) 557-2737 or Liz Facemire (202) 557-2870.
Q1 GDP Commentary from MBA’s Mike Fratantoni
On Wednesday, the U.S. Commerce Department announced that real gross domestic product (GDP) decreased at an annual rate of 0.3 percent in the first quarter of 2025.
What they are saying: “Economic growth went negative in the first quarter as businesses rushed to import goods before tariffs went into effect. In addition to the pullback in activity, the inflation metrics increased relative to the prior quarter, so both growth and inflation were headed in the wrong direction,” said MBA’s SVP and Chief Economist Mike Fratantoni. “The data showed a slower 1.8% growth rate for consumer spending, with a reduction in spending on motor vehicles and parts compared to last quarter. Households were getting more cautious with respect to larger purchases even in advance of the tariff announcements.”
Go deeper: To read MBA’s full analysis, click here.
For more information, please contact Mike Fratantoni at (202) 557-2935.
Get Involved in MAA Action Week: May 12-16
MBA’s annual Mortgage Action Alliance (MAA) Action Week is fast approaching, taking place from May 12-16! Sign up today and promote the importance of advocacy engagement within your company or state association. This industry-wide campaign allows ALL of us to play a part in the legislative and regulatory process – on issues that directly impact all real estate finance professionals. Active MAA engagement allows YOU and your company to drive positive change by adding your voice to our collective efforts.
Go deeper: During MAA Action Week, MBA provides you with all necessary resources you need to make your campaign a success, including a communications plan, sample emails, social posts, and graphics in advance – making it an easy “copy and paste” exercise for you and your designated colleagues.
Why it matters: MAA unites our entire industry. You and your company colleagues are the experts – and your voice is needed to play a part conducting this vital work – especially with so many new elected officials in the current Congress.
ICYMI: MBA’s Legislative and Political Affairs team last week hosted a MAA Quarterly Webinar: Beyond the First 100 Days. The free virtual event provided around 1,050 registrants with a breakdown on the latest legislative and regulatory updates, what to expect next from Capitol Hill, and priorities MBA is actively tracking on behalf of the industry. Here’s a link to the recording.
What’s next: MBA’s federal, bipartisan political action committee, MORPAC, will also be hosting its annual fundraising campaign, June 23-27. MORPAC provides access to build and strengthen relationships with pro-industry candidates and advance MBA’s legislative agenda. If you’re interested in learning more about our industry’s PAC, email morpac@mba.org.
For more information, please contact Jamey Lynch, AMP at (202) 557-2818 or Margie Ehrhardt at (202) 557-2708.
[VIDEO]: mPower Moments: On Trusting Your Instincts with MBA’s Tamara King
mPower Founder Marcia M. Davies sits down with Tamara King, MBA’s Vice President of Strategic Industry Engagement, Residential Policy, for an in-depth conversation on her career journey and her dedication to working with MBA’s membership on critical policy issues.
Go deeper: King also discussed the pivotal moments in her career and the challenges she has faced balancing familial responsibilities as well as career advancement. Additionally, King shared insightful advice on how the next generation can thrive and succeed and how “being your own advocate” can spur new opportunities.
For more information, please contact Marcia Davies at (202) 557-2707.
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:
• Cybersecurity in Mortgage, Part I: Review of Recent Trends and the Current Landscape – May 6
• Manufactured Housing 101: Understanding the Basics – May 12
• Tech Trends Shaping the Future of Mortgage Lending – May 13
• 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
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.