Advocacy Update: MBA Blasts Credit Reporting Price Hikes; FHFA Announces 2026 Conforming Loan Limits; Recap of MBA and FDIC, OCC Leadership Meetings
MBA Blasts Credit Reporting Price Hikes; Calls for Ending Tri-merge Requirement
MBA received reports from its members regarding their 2026 pricing for tri-merge credit reporting products and the accompanying credit scores, with most members reporting yet another round of price hikes of 35-40% or more.
• The price hikes mark a fourth consecutive year of steep increases in the cost of tri-merge reports and credit scores, and reflect, in MBA’s view, the deeply flawed and anticompetitive market structure that the GSEs and other government-backed loan programs foster through the requirement to purchase reports and scores from each of the three credit bureaus on every application.
What they’re saying: President and CEO Bob Broeksmit, CMB, blasted the price hikes in a LinkedIn post as well in a press statement, saying, “Once again, the national credit bureaus are abusing their government-granted oligopoly by gouging consumers – a predictable outcome in a flawed, outdated, and anticompetitive system where lenders are required to buy specific, increasingly-expensive credit reporting data from each of the three credit bureaus. MBA has long led the call to fix this broken model and shined a light on the role that regulations and the government play in these steep, unjustified price hikes that ultimately hurt housing affordability.”
• Broeksmit added, “Today’s news only strengthens our call to move away from the tri-merge credit report structure. Single-file reports are used safely in nearly every other consumer finance market, and extending them into the mortgage market would provide price relief for American homebuyers by injecting real competition, lowering closing costs, and streamlining the mortgage process, all without compromising sound risk management.”
Why it matters: MBA is currently exploring the feasibility of a single credit report for both the GSEs and government-guaranteed loans in response to ongoing concerns with the rising costs of credit scores and credit reports, as well as the market-distorting impacts of a government-mandated purchase from each of the three providers. The current tri-merge mandate inhibits competition among the credit bureaus and stifles innovation in credit reporting practices.
• In August, MBA’s Residential Board of Governors (RESBOG) passed a resolution urging the Federal Housing Finance Agency (FHFA) to end the requirement for a tri-merge credit report for every loan purchased by Fannie Mae and Freddie Mac (the GSEs) and to adopt an alternative credit reporting framework that incents competition among the bureaus to improve accuracy and lower costs.
• RESBOG voted to support modernizing the mortgage credit reporting framework to lower consumer costs and improve service quality.
What’s next: Given this new round of annual price increases, MBA will redouble all collective efforts to end the tri-merge requirement and take all available steps to bring competition to the credit reporting market.
For more information, please contact Brendan Kelleher at 202-557-2779 or Sasha Hewlett at 202-557-2805.
FHFA Announces Conforming Loan Limits for 2026
On Tuesday, the Federal Housing Finance Agency (FHFA) published the 2026 maximum conforming loan limits for mortgages eligible to be acquired by Fannie Mae and Freddie Mac (the GSEs). The limits are calculated by FHFA according to a formula established by Congress in the Housing and Economic Recovery Act of 2008 (HERA).
Why it matters: The baseline maximum conforming loan limit for one-unit properties will increase 3.26 percent to $832,750, an increase of $26,250 from 2025. The maximum conforming loan limit for one-unit properties in high-cost areas will increase to $1,249,125 – or 150 percent of the baseline limit, which is the “ceiling” set by Congress for high-cost area loan limits.
What’s next: In general, the new limits are effective for whole loans delivered, and mortgage loans delivered into MBS with pool issue dates, on or after Jan. 1, 2026. See Fannie Mae Lender Letter here and Freddie Mac Bulletin here for delivery details.
For more information, please contact Sasha Hewlett at (202) 557-2805.
MBA, Industry Executives Meet with Key Regulators Ahead of Basel III Re-proposal
Ahead of the anticipated Basel III Endgame re-proposal expected as soon as December, MBA staff and member bank executives met with leaders of the Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation (FDIC) to discuss Basel III’s impact on the real estate lending industry and MBA’s recommended revisions. MBA staff also briefed the House Financial Services Committee staff on these issues as part of a joint trades presentation on the upcoming proposed revisions.
• MBA stressed that banks play a critical role in the mortgage lending and servicing markets – both directly and indirectly by financing IMBs – and that the current capital rules keep banks from playing their full role in these markets.
• The group highlighted the punitive 250% risk weight assigned to mortgage servicing assets (MSAs) as well as the unnecessary 25% cap on MSAs that a bank is allowed to include in common equity tier 1 capital – two provisions that have caused significant migration of banks from the mortgage lending and servicing businesses, and therefore, limitations in choice of mortgage lenders and servicers for U.S. taxpayers.
• MBA also urged the regulators to reduce the 100% risk weight on warehouse lines of credit to 50%, or to otherwise align with the risk weight of the underlying collateral. A 50% risk weight would not only ensure alignment between the warehouse line and the underlying loans that collateralize the line (under current rules), but also ensure that banks have the capability to continue to provide the necessary funding and liquidity to nonbank lenders who have now taken over a larger share of mortgage lending and servicing, and as such, help families attain their dream of homeownership.
Why it matters: As Treasury Secretary Scott Bessent noted in his July 21st speech, “[o]utdated capital requirements on some exposures are misaligned with actual risk, imposing unnecessary burdens on financial institutions.”
• MBA strongly agrees with this statement, and stressed during the meetings that it is imperative that regulators handle the next iteration of the Basel 3 Endgame proposal correctly.
What’s next: MBA will continue to work with members to engage federal banking regulators throughout the rulemaking process on Basel III. Member feedback is imperative to ensure that the re-proposal is handled correctly. Please share any comments, questions, or thoughts regarding Basel III with MBA.
For more information, please contact Fran Mordi at (202) 577-2860.
MBA Proposes HECM Program Improvements and HMBS Liquidity Enhancements
On Wednesday, MBA submitted a letter in response to the recent Federal Housing Administration (FHA) and Ginnie Mae joint request for information (RFI) that seeks input on how to modernize and strengthen the Home Equity Conversion Mortgage (HECM) and HECM Mortgage-Backed Securities (HMBS) programs to better serve senior homeowners and support market liquidity.
Why it matters: The RFI represents a comprehensive review of the HECM and HMBS programs, aiming to facilitate access to and closely align these programs with their intended policy goals. Over the past decade, despite programmatic improvements to mitigate losses to the FHA’s Mutual Mortgage Insurance Fund (MMIF), HMBS issuance volumes have returned to the same levels as a decade ago, despite a growing population of Americans that could benefit from the program. Meanwhile, the proprietary reverse market has begun to develop in parallel as an alternative source of liquidity.
Go deeper: Removing undue lender burdens and avoiding obstacles to borrower access is fundamental to the HECM and HMBS programs’ ability to meet their intended policy goals. To improve the HECM and HMBS programs, MBA’s letter advocates that FHA and Ginnie Mae should:
• Create a new HMBS security that would allow all HECMs at 98% of their Maximum Claim Amount to be re-securitized;
• Allow existing private servicers to continue servicing loans after assignment to FHA (post-98% buyout);
• Restructure the upfront and ongoing HECM Mortgage Insurance Premiums to align premiums with actual amount drawn on the HECM;
• Broadly adjust principal limit factors to a borrower’s risk profile;
• Modernize the collateral risk assessment process;
• Restructure Life Expectancy Set-Aside requirements to apply only to borrowers who are at high risk of default; and,
• Cultivate a robust HECM counseling process.
What’s next: MBA will keep members informed of any updates following the RFI and will organize the association’s response through the MBA Reverse Mortgage Advisory Group.
For more information, please contact Anthony Siller at 202-557-2944.
New York Court of Appeals Upholds Constitutionality of FAPA Retroactivity
The New York Court of Appeals issued a 7-0 decision, holding that New York’s Foreclosure Abuse Prevention Act (FAPA) applies retroactively and that the retroactive application of FAPA does not violate the New York Constitution.
• Recall that the U.S. Second Circuit Court of Appeals certified two questions to the New York Court of Appeals: first, whether FAPA applies retroactively, and second, whether retroactive application of FAPA violates the lenders’ due process rights under the New York Constitution.
• FAPA states that the voluntary discontinuance of a foreclosure action cannot stop the statute of limitations. FAPA prohibits New York servicers from unilaterally halting a foreclosure action and restarting the loan’s statute of limitations to offer homeowners facing financial hardship loss mitigation opportunities.
Go deeper: The New York Court of Appeals found that the text of FAPA and its legislative history, which was passed in response to the Engels case, indicated that FAPA was intended to apply retroactively. The Court also found that FAPA does not violate the New York Due Process Clause because the law does not impair a vested contractual right to enforce the mortgage.
• MBA and other trades had filed a joint Amicus Brief in this case, arguing that the retroactive application of FAPA would disrupt longstanding New York mortgage servicing practices and severely damage the state’s mortgage market. Additionally, the retroactive application of FAPA would violate the New York and U.S. Constitutions by destroying the lender’s rights to collect payments on mortgages after voluntary discontinuance of a foreclosure. Specifically, retroactivity violates the New York and Federal Due Process Clauses, the New York and Federal Takings Clauses, and the Federal Contract Clause.
What’s next: The case now goes back to the U.S. Second Circuit Court of Appeals Court for a final decision based on the answer to the certified questions. MBA will keep members informed about any moving FAPA litigation.
REGISTER: December 4 Town Hall with MBA Leadership
On Thursday, December 4, at 3:00 p.m. ET, MBA’s President and CEO Bob Broeksmit, CMB, and other MBA leaders engaged on policy issues, will host another virtual MBA Town Hall on the latest developments in the single-family and commercial/multifamily arenas under the Trump administration and 119th Congress.
• Register here. Attendees can send questions beforehand to townhall@mba.org.
Why it matters: MBA continues to monitor ongoing developments at the federal agencies and is engaging with the Trump administration and Congress to promote activities and priorities that advance investment and growth in real estate markets.
For more information, please contact Bill Killmer at (202) 557-2736 or Pete Mills at (202) 557-2878.
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:
• Ten Things Your Company Must Do in 2026 – Dec. 9
• New Rules for Recruiting in Mortgage and Banking – Dec. 16
• 5 Key MISMO Initiatives Impacting Today’s Lenders – Feb. 17
• Mortgage Accounting Webinar Series: Loan Accounting, Part I: Drilling into Mortgage Accounting – April 22
• Mortgage Accounting Webinar Series: Loan Accounting, Part II: Loan Level Accounting – April 29
• State of the Market: Tech Trends Shaping the Future of Mortgage Lending – May 14
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.
