MBA Advocacy Update: Congress, White House Reach Agreement to Fund Government Through January
Congress and White House Reach Agreement to Fund Government Through January Next Year
As widely reported, the full Senate on Monday passed a modified version of a Continuing Resolution (CR) designed to keep the federal government funded through Jan. 30 next year by a final vote of 60 to 40. That CR was paired with a so-called “minibus” of three appropriations bills designed to also fund Fiscal Year (FY) 2026 military construction (MilCon) projects and Department of Veterans Affairs (VA) operations, FY26 operations for the Department of Agriculture (USDA), and FY26 resources for the operations of the U.S. House and Senate (Legislative Branch).
• The House, in turn, passed that same measure (Senate Amendment to H.R. 5371, the Continuing Appropriations and Extensions Act, 2026) Wednesday night by a vote of 222 to 209, following several hours of debate. This action came after fourteen unsuccessful attempts by the Senate to advance a prior “clean” stop-gap House bill that would have funded the government through Nov. 21, 2025. President Donald Trump immediately signed the funding measure into law Wednesday night.
Go deeper: In addition to temporarily ending the longest government shutdown in U.S. history, H.R. 5371 (as amended) would also reverse more than 4,000 federal layoffs (and prevent any future layoffs through January). Importantly for our industry, the package would also reauthorize the National Flood Insurance Program (NFIP) through Jan. 30, 2026. It also contains a narrow set of technical corrections to MBA-supported Public Law 119-31 (previously H.R. 1815) that restored VA Home Loan program partial claims authority as a loss mitigation option for servicers (pending the new law’s implementation by the VA).
• A bipartisan group of senators successfully negotiated (and “whipped” the needed votes to pass) the Senate solution to end the funding stalemate after assurances from the White House and Senate Majority Leader John Thune (R-SD) that a vote on extending a set of expiring Affordable Care Act subsidies would be scheduled to take place in the Senate during the second week of December.
Why it matters: As reported these last several weeks, MBA prepared a detailed member guide that outlined the impacts the funding impasse would have on single-family and multifamily government lending programs. The prolonged shutdown necessitated furloughs and other Reductions in Force (RIFs) of many federal employees, curtailing operations at key agencies such as HUD (FHA and Ginnie), Treasury, the VA, and USDA. To avoid long-term disruptions to the housing and flood insurance markets, MBA and a broad industry coalition strongly advocated for a restoration of NFIP program authority.
• Moreover, MBA issued a Nov. 7 press statement from CEO Bob Broeksmit, CMB, calling for lawmakers to bridge their differences and end the shutdown as quickly as possible. That action was buttressed by a Nov. 10 statement from MBA and a broad coalition of financial trade groups that “welcomed news of the bipartisan deal to reopen the government” and “urged lawmakers to support the [negotiated] agreement.”
What’s next: Lawmakers will continue discussions aimed at enacting the remaining elements of an FY26 spending package (or individual FY26 appropriations bills) for all affected federal agencies prior to January 30, 2026. MBA will continue to urge key administration officials and congressional leaders to quickly strike a durable FY26 funding agreement that emphasizes our industry’s key priorities and avoids any further disruptions to the national economy – and the housing and real estate ecosystems.
For more information, please contact Bill Killmer at (202) 557-2736 or Pete Mills at (202) 557-2858.
CFPB Releases Proposed Rule Amending Regulation B
On Thursday, the Consumer Financial Protection Bureau (Bureau or CFPB) issued a proposed rule that amends provisions related to disparate impact, discouragement of applicants or prospective applicants, and special purpose credit programs under Regulation B, the regulation implementing the Equal Credit Opportunity Act (ECOA or Act).
• The CFPB frames these changes as aligning Regulation B with the statutory text of ECOA, Supreme Court precedent on disparate impact statutes, and recent Executive Orders 14173 and 14281 that emphasized merit-based opportunity and limited disparate-impact enforcement.
• MBA previously submitted a comment letter in response to the 2020 RFI on ECOA.
• MBA’s summary of the proposed rule is available here.
While this is a significant rulemaking with respect to federal anti-discrimination laws generally, it is important to note that much of the conduct covered by ECOA with respect to mortgage lending is also covered by the Fair Housing Act.
Go deeper: The proposed changes would limit discrimination claims under ECOA only to acts where creditors treat borrowers differently based on their protected characteristics.
• Discouragement claims would also be limited to written statements or visual presentations, not acts or practices, such as the placement of branch offices, or marketing aimed at one group over another.
• Lastly, Special Purpose Credit Programs (SPCPs) created by for-profit institutions can no longer use race, color, national origin, or sex as eligibility criteria for the program.
What’s next: Comments are due on Dec. 15, 2025. MBA will work with members to file comments.
For more information, please contact Justin Wiseman at (202) 557- 2854 or Alisha Sears at (202) 557-2390.
CFPB Notifies Court it Cannot Lawfully Draw Funds from the Federal Reserve
On Tuesday, the CFPB filed a notice informing the court in NTEU v. Vought that the Department of Justice’s Office of Legal Counsel (OLC) has determined that the CFPB may not legally request funds at this time from the Federal Reserve under Dodd-Frank. A link to the announcement is available here.
• The CFPB believes it can continue to fund its operations until at least Dec. 31, 2025.
• MBA has consistently noted that defunding the CFPB poses a risk to the mortgage industry and has highlighted the important role the CFPB plays in writing rules and providing supervisory guidance to interpret and make sense of the Dodd Frank Act (see MBA’s Amicus Brief in the Consumer Financial Protection Bureau v. Community Financial Services Association case).
Go deeper: The CFPB is not funded through the traditional appropriations process. Instead, the CFPB draws its funding from the Federal Reserve Board’s “combined earnings.”
• The OLC reached this conclusion based on the fact that the Federal Reserve System currently lacks any “combined earnings” from which the CFPB can draw funding, as required by Dodd-Frank. OLC interprets “combined earnings” to mean profits (revenues minus interest expense), not gross revenues. Given that the Federal Reserve has reported net losses, the OCL concludes that there are no funds from which to draw.
What’s next: MBA will keep members informed about any updates. MBA is actively engaged in any relevant rulemaking from the CFPB.
For more information, please contact Justin Wiseman at (202) 557- 2854 or Alisha Sears at (202) 557-2390.
MBA and MBA of New Jersey Deliver Opposition Letter to Sponsors of CRA Legislation
Last week, MBA and the Mortgage Bankers Association of New Jersey (MBA-NJ) sent a detailed opposition letter to the sponsors of companion bills S4694 and A5957, which would establish a Community Reinvestment Act (CRA) framework for independent mortgage banks (IMBs), New Jersey credit unions, and state-chartered banks.
• While the letter expressed support for the sponsors’ goal of expanding homeownership opportunities, it emphasized that the proposed legislation fails to address the real barriers facing borrowers—namely, soaring home prices, historically low housing inventory, and limited affordable options that intensify competition in the market.
Go deeper: The MBA and MBA-NJ highlighted that a “community reinvestment” model does not align with how IMBs operate and underscored that:
• New Jersey already has effective, proven programs that expand credit access for first-time and low- to moderate-income (LMI) buyers—programs that would benefit more from increased legislative funding and support.
• IMBs are national leaders in serving LMI and minority borrowers and communities, including within New Jersey.
• Implementing the proposed CRA framework would impose substantial costs, likely passed down as higher examination and compliance fees for lenders that would increase borrower costs.
• The associations urged lawmakers to focus on enhancing existing state programs that directly support affordable homeownership and address the supply-side challenges that continue to limit access for many potential buyers.
Why this matters: Immediate action by MBA and its partner association MBA-NJ allow for meaningful conversations in efforts to shift the sponsor’s strategy to proven and known solutions to increase access to credit.
What’s next: MBA and MBA-NJ will continue to collaborate to oppose this legislation and may issue a Mortgage Action Alliance call to action in New Jersey.
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.
State Legislatures in Prefiling; MBA’s State Legislative Database Tool and Upcoming Training
This month, state legislatures across the country have begun pre-filing legislation for the new year. MBA continues to utilize its comprehensive State Legislative Database to brief members of the State Legislative and Regulatory Committee (SLRC) on the ongoing policy challenges in the states. Additionally, the database is a free member benefit.
Go deeper: Once a member logs in using their MBA credentials, they can track any current piece of real estate finance-related legislation in any state. Additionally, members of the SLRC receive biweekly email updates on the status of major bills.
Why it matters: The policy challenges facing member companies – particularly state-licensed firms – are voluminous, and the database actively tracks thousands of introduced bills. The system offers members a single and effective way to stay abreast and informed of any developments by “flagging” or “grouping bills” for automatic email updates.
What’s next: MBA’s next free, monthly database training is Wednesday, Dec. 3 at 3:00 PM ET.
• To view key residential and commercial/multifamily policy issues the SLRC is tracking, click here.
For more information on the functions of the database, please contact Liz Facemire at (202) 557-2870.
To sign up for the next training session or to be added to the SLRC for biweekly updates, please contact Ainsley Zimmer at (202) 557-2796.
Mortgage Call Report Version 7 Office Hours Scheduled
On Monday, the Conference of State Bank Supervisors (CSBS) posted the schedule for NMLS Mortgage Call Report Version 7 (MCRV7) office hours. These office hours will have dedicated CSBS staff available to address questions related to timelines, new or updated report elements, and available support resources ahead of the first filing date covering the first quarter of 2026, due May 15, 2025.
• These office hours will be held most Fridays 12:00-1:00pm ET starting Friday Nov. 21 through April 24. For a full schedule see this email CSBS sent to companies required to file MCRV7.
Meeting access: To access these office hours, please save this link to join the meetings during the scheduled times provided by CSBS. (Meeting ID: 227 443 764 654 7, Passcode: xQ2Z3Fr6).
Why it matters: With the delayed release of the XML schema required to build compliance around the new MCRV7, these office hours serve as an important resource to companies seeking more clarity on the new version (found here in the original proposal). MBA has been urging CSBS to provide the necessary tools, like the XML, to build compliance on new version releases sooner, in order to avoid any delays or issues with compliance.
What’s next: Considering the delayed release of the MCRV7 XML, MBA has continued to urge CSBS and the American Association of Residential Mortgage Regulators to encourage their state regulator members to offer Q1 2026 grace periods for the first filing of MCRV7.
For any issues with connecting to the office hours, please contact NMLSMCR@csbs.org or contact William Kooper at (202) 557-2737 or Liz Facemire at (202) 557-2870.
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:
• Using Quality Assurance, Control and Fraud Prevention to Strengthen Loan Operations – Nov. 17
• Breaking the 15-Minute Barrier: The First Machine-Only Income Decisioning in Mortgage – Nov. 19
• Non-Agency Training Series: Foreign National Loans – Nov. 19
• Leveraging Rental Payment History Part III – Building the Borrower Profile – Nov. 20
• AI Speed Learning for the Mortgage Professional – Nov. 20
• Ten Things Your Company Must Do in 2026 – Dec. 9
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.
