Advocacy Update: Stalemate Continues as Federal Government Shutdown Enters Third Week; Read MBA’s Member Guide
Stalemate Continues as Federal Government Shutdown Enters Third Week; Read MBA’s Member Guide
Bipartisan talks to end the government shutdown remain at a standstill as the impasse has entered its third week. On Thursday, the Senate for the 10th time (as of this writing on Oct. 17) failed to pass a “clean” government funding bill, and Senate Majority Leader John Thune’s (R-SD) efforts to advance a vote to fund the Department of Defense for Fiscal Year (FY) 2026 were also thwarted.
• Although the Defense bill passed Committee with bipartisan support earlier this year, Senator Thune’s maneuver failed to break the current “logjam.” Senate Republicans are also exploring ways to attempt to attach additional spending bills to the Defense package as early as next week.
• Read MBA’s member guide that outlines the potential impacts to single-family and multifamily government lending programs.
The federal government has been shut down since Congress failed to come to an agreement on FY 2026 funding before a Sept. 30 11:59 p.m. ET deadline.
Why it matters: The shutdown has necessitated furloughs, and in some cases led to Reductions in Force (RIFs) of many federal employees, as well as significant curtailment of certain operations that require government staff intervention or action. Actions at the Department of Housing and Urban Development (HUD), Treasury Department, Veterans Affairs, and the Department of Agriculture are particularly impactful for lending activity.
• National Flood Insurance Program (NFIP) authorities have expired, a disruptive development that impacts real estate transactions in flood-prone areas where insurance is required. Although the White House and GOP congressional leaders have declined to make a deal to reauthorize the NFIP prior to passage of a “clean” CR, MBA continues to advocate for an immediate extension of the program’s authority–including a separate/targeted measure–to avoid long-term disruptions to the housing and flood insurance markets.
Go deeper: On Sept. 19, House Republicans passed a short-term Continuing Resolution (CR) to extend FY 2024-2025 funding through Nov. 21, 2025. In the Senate, several attempts to advance either the House bill or a Democratic alternative have failed, with Democrats seeking to include additional health care priorities.
What’s next: MBA remains in contact with lawmakers and regulators and encourages members to share any real-time operational impacts. A prolonged shutdown–particularly with extended federal agency furloughs–risks significant disruption for the industry and consumers. MBA continues to monitor all funding votes as negotiations evolve.
For more information, please contact Bill Killmer at (202) 557-2736 or Pete Mills at (202) 557-2858.
MBA Responds to House Committee Inquiry on Shutdown Impacts
Last week, MBA submitted a letter to the House Financial Services Committee outlining steps the real estate finance industry is taking to support borrowers during the ongoing federal government shutdown.
• The letter details the efforts of MBA member companies to maintain access to credit and housing stability for affected federal employees, service members, and contractors. These include forbearance and loan modification options, temporary verification flexibilities, and continued processing of FHA and VA-related transactions.
Why it matters: The letter reflects MBA’s ongoing coordination with federal agencies, the GSEs, and industry partners to ensure timely communication of servicing flexibilities and borrower assistance options. It also demonstrates the industry’s commitment to mitigating disruption for homeowners, renters, and affected communities during periods of operational uncertainty.
What’s next: MBA will continue to monitor the situation and work with policymakers to resolve operational challenges if the shutdown persists, while advocating for continuity in loan processing, verification systems, and federal housing programs.
For more information, please contact Rachel Kelley at (202) 557-2816 or Madisyn Rhone at (202) 557-2741.
FHFA Releases Updated Strategic Plan for Fiscal Years 2026-2030
On Wednesday, the Federal Housing Finance Agency (FHFA) published its draft strategic plan for fiscal years 2026-2030. The strategic plan highlights FHFA’s ongoing and future efforts to oversee and shape Fannie Mae and Freddie Mac (the GSEs), the Federal Home Loan Banks (FHLBs) as well as improve its own operations.
• The plan contains several objectives aimed at accomplishing three topline goals: responsibly overseeing the GSEs for the American people, supervising the FHLB system, and efficiently managing FHFA operations.
• The plan includes priorities FHFA Director William Pulte has highlighted previously including anti-fraud efforts, deregulation, and housing supply.
Why it matters: The objectives contained within FHFA’s strategic plan will guide its actions as conservator and regulator, which in turn will have a significant impact on the health of the mortgage market.
What’s next: FHFA will accept public comments on the strategic plan through Nov. 5, 2025. MBA will review the proposed strategic plan in the coming weeks and will continue to engage with FHFA on this and other critical housing issues.
For more information, please contact Sasha Hewlett at (202) 557-2805.
MBA Files Amicus Brief with Supreme Court Addressing Unwarranted Extension of the Statute of Limitations for the Fair Housing Act
On Wednesday, MBA joined several trade groups in filing an amicus brief with the U.S. Supreme Court in Emigrant Mortgage Company v. Jean Robert Saint-Jean. The brief urges the Court to grant certiorari to correct the Second Circuit’s legally flawed and unwarranted application of equitable tolling to FHA’s two-year statute of limitations.
The filing reinforces arguments that MBA has consistently advanced in other fair lending and consumer finance cases—namely, the need for proper application of statutes of limitation and greater certainty regarding potential claims liability.
Specifically, the brief makes the following key arguments:
• The Court should clarify that the “diligence” and “extraordinary circumstances” elements apply to equitable tolling of discrimination claims;
• The erroneous “fairness-based” equitable tolling rule is inappropriate and unnecessary in the mortgage context; and
• The limitless equitable tolling standard applied below invites litigation over decades-old mortgage practices.
Why it matters: MBA members support the Fair Housing Act (“FHA” or “Act”), are strongly committed to providing lending, servicing, and other financial services to consumers in a nondiscriminatory manner, and have a significant interest in ensuring that the FHA is enforced in a lawful, fair, and reasonable way.
Go deeper: The Second Circuit’s divided opinion dramatically expands the doctrine of equitable tolling for mortgage discrimination claims and displaces the FHA’s two-year statute of limitations set by Congress. The majority’s decision creates uncertainty regarding fair housing liability in the mortgage industry and presents serious risks of new FHA litigation over historical and time-barred lending and servicing outcomes.
What’s next: MBA will monitor and inform members when a decision is reached.
For more information, please contact Justin Wiseman at (202) 557- 2854 or Alisha Sears at (202) 557-2390.
MBA and NRMLA Call Upon Google to Modify Restrictions on Reverse Mortgage Loan Advertising
Last Monday, MBA and the National Reverse Mortgage Lenders Association (NRMLA) sent a formal request letter to executives at Google Advertising, urging modifications to Google’s restrictions on the advertising of reverse mortgage loans.
Why it matters: Enforcement of Google Sensitive Interest Categories Policy has restricted the advertising of Home Equity Conversion Mortgages (HECMs) and proprietary reverse mortgage loans on platforms such as Google Ads and YouTube. The Equal Credit Opportunity Act and its implementing regulation allow for “special purpose credit programs” designed to benefit a special class of persons. One notable example are HECMs, which are only available to U.S homeowners age 62 and older by federal law.
Go deeper: Similarly, proprietary reverse mortgage loans may only be available in states that authorize and regulate them when made to homeowners meeting state-specified minimum age requirements. Google’s policy has blocked MBA members from reaching the legally eligible audience that would benefit from government authorized products such as HECMs and proprietary reverse mortgage loans.
• MBA has asked Google to create a policy exception for age-restricted reverse mortgage loans and other special purpose credit programs, such as senior-eligible Home Equity Lines of Credit.
What’s next: MBA and NRMLA are aiming to engage in direct dialogue with Google leadership and will continue to advocate for changes to Google’s Sensitive Interest Categories Policy.
For more information, please contact Anthony Siller at 202-557-2944
MBA and Partner Associations Urge Changes to New York CRA Proposal for IMBs
Last week, MBA and the New York MBA led an industry coalition comment letter sent to the New York Department of Financial Services (DFS) in response to its recently reproposed rules to implement the state’s Community Reinvestment Act (CRA) for independent mortgage banks (IMBs). This is the third time since the law passed in 2021 that DFS has proposed these rules, and MBA submitted comments this April as well as in a letter in December 2024.
• The third iteration of the proposal was announced in the New York State Register (see page 7) in early September, and that publication directed industry to review the specific language on the DFS website.
Why it matters: The industry letter outlined several concerns — chief among them that the proposed limits on CRA credit for purchased loans would disadvantage smaller mortgage lenders and hinder efforts to provide affordable financing to low- and moderate-income (LMI) borrowers. The associations urged regulators to allow both the originating and purchasing institutions to receive CRA credit, consistent with the structure of the federal CRA framework.
Go deeper: The letter also objected to the elimination of a statewide assessment area option for certain lenders and warned that this change deviates from Massachusetts’ approach, increasing compliance burdens and costs that could ultimately affect consumers.
• The letter supported the Department’s decision not to require public hearings for licensing applications, encouraged use of Home Mortgage Disclosure Act data for performance metrics, and urged future action to eliminate commutable distance requirements and adopt remote‑work policies to better serve LMI communities.
What’s next: MBA and its partners will seek a meeting with DFS to discuss these comments and DFS’ direction.
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.
MBA Launching Rental Payment History Webinar Series
Join MBA and industry experts for a timely discussion about the need to expand adoption of rental payment history into the underwriting process. As housing affordability remains constrained, lenders have looked to new approaches to help first-time homebuyers achieve the American Dream. In many markets, average rent payments are often as high or higher than average monthly mortgage payments. The ability to successfully leverage timely rental payment history into the underwriting process could open the doors of homeownership for many current renters.
• Part I: Current GSE Policy and Recent Enhancements – Speakers from both Fannie Mae and Freddie Mac (the GSEs) will summarize existing guidelines and policies allowing the use of positive rental payment history in the underwriting process. Additionally, GSE speakers will explore collaboration opportunities and recent enhancements that aim to expand adoption.
• Part II: Industry Practices and Consumer Experience Improvements – Lenders will share an optimized loan officer workflow that increases adoption of positive rental payment history.
• Part III – Building the Borrower Profile – Speakers will explore ways to identify applicants most likely to benefit from the collection of rental payment history. Additionally, instructors will cover the power of closing the “Trust Gap”, along with collaboration opportunities that include housing counselors and sister trade associations.
Why it matters: In April, MBA published its Leveraging Rental Payment History white paper, which focused on increasing lender adoption of rental payment history.
• MBA’s recommendations center on enabling GSE collaboration along with improvements to industry practices and the consumer experience. This education series aims to foster industry partnership with the GSEs, expand adoption of a new and improved workflow, and make the dream of homeownership a reality for more first-time borrowers.
What’s next: The webinar series will take place on November 6, 13, and 20 (1:00-2:00pm ET all days). MBA encourages those interested to submit questions in advance to David Upbin at dupbin@mba.org.
For more information, please contact Anthony Siller at 202-557-2944.
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:
• Non-Agency Training Series: Second Liens and HELOCs – Oct. 28
• Say It So Borrowers Understand: Plain Language + Translation That Cut Call Volume and Improve Outcomes – Oct. 29
• Leveraging Rental Payment History – Part I: Current GSE Policy and Recent Enhancements – Nov. 6
• Simplify, Automate and Elevate through AIM with LPA – Nov. 12
• Leveraging Rental Payment History – Part II: Industry Practices and Consumer Experience Improvements – Nov. 13
• Using Quality Assurance, Control and Fraud Prevention to Strengthen Loan Operations – Nov. 17
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.
