Advocacy Update: CFPB Rescinds Nonbank Registry Rule
CFPB Rescinds Nonbank Registry Rule
In a significant advocacy win for MBA and its members, the Consumer Financial Protection Bureau (CFPB) on Wednesday announced that it is rescinding its rule requiring nonbank financial services companies to report to the Bureau the existence of any regulatory or judicial orders for violations of federal, state or local consumer finance laws. The orders were to be compiled into what CFPB, under Director Chopra, dubbed a “repeat offender” registry. The rescission is effective immediately.
• The CFPB is rescinding the final rule “based on concerns that the costs the rule imposes on regulated entities… are not justified by the speculative and unquantified benefits to consumers discussed in the analysis proffered in the [Final Rule].”
What they’re saying: In a press statement, MBA President and CEO Bob Broeksmit, CMB, said, “MBA strongly supports the CFPB’s decision to rescind the unnecessary and duplicative consent order registry proposal and is pleased that the CFPB was receptive to persistent feedback from our members that this registry would have created compliance burdens without improving consumer protection or market transparency.
Broeksmit added, “These moves allow lenders and servicers to stay focused on responsibly delivering affordable mortgage credit to consumers.
Go deeper: MBA has repeatedly voiced its concerns (see March 2023 letter) regarding the regulation’s costly and duplicative reporting framework and appreciates the CFPB’s announcement. More recently, MBA urged the CFPB to rescind the rule in response to President Trump’s various executive orders aimed at deregulation.
• MBA has repeatedly stressed that the CFPB registry duplicates the already comprehensive consumer-facing database maintained by the Conference of State Bank Supervisors’ Nationwide Multistate Licensing System Consumer Access portal.
• CFPB also announced it was rescinding a related rule creating a registry of contractual terms used by nonbanks that waive or limit consumer legal protections. MBA also supports this action.
What’s next: This is a big advocacy win that reflects years of engagement with the CFPB over this issue. MBA will continue monitoring this and other CFPB developments.
For more information, please contact Justin Wiseman at (202) 557- 2854 or Alisha Sears at (202) 557-2390.
Federal Reserve Cuts Rates by 25 Basis Points
In response to current economic conditions, the Federal Reserve’s Federal Open Market Committee decided to cut the federal funds rate to a target range of 3.75-4.00% on Wednesday.
Why it matters: The Committee emphasized that, “[we] will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.”
MBA Chief Economist Mike Fratantoni in a written statement said, “The FOMC also announced that it would be ending quantitative tightening on December 1st, indicating that the overall balance sheet will no longer be shrinking. MBS prepayments and amortization will be rolled into Treasuries going forward. As these moves were anticipated by the market, MBA does not expect any significant changes to mortgage rates as a result. Mortgage rates are currently around their low for the year and this has spurred both refinance and purchase activity.”
For more information, please contact Mike Fratantoni at (202) 557-2935.
Federal Government Shutdown Enters Fifth Week as Stalemate Continues
The Senate on Wednesday failed for the 13th time to advance the House-passed “clean” funding bill that would end the government shutdown. As the impasse enters its fifth week, a bipartisan group of senators are attempting to negotiate an end to the funding stalemate.
• Read MBA’s member guide that outlines the potential impacts to single-family and multifamily government lending programs.
Why it matters: Hundreds of thousands of federal employees have missed paychecks this month. Moreover, the shutdown has necessitated furloughs and has been used to justify Reductions in Force (RIFs) of many federal employees, as well as significant curtailment of certain operations at key agencies such as HUD, Treasury, the VA, and USDA.
National Flood Insurance Program (NFIP) authorities remain expired, with the White House and GOP congressional leaders still declining to make a deal to reauthorize the program prior to passage of a “clean” Continuing Resolution (CR). To avoid long-term disruptions to the housing and flood insurance markets, MBA continues to advocate for an immediate restoration of the program’s authority.
What’s next: MBA remains in contact with lawmakers and regulators and encourages members to share any real-time operational impacts. The longer this shutdown lasts – particularly with extended federal agency furloughs and missed paychecks – the more likely it will lead to significant disruption for the industry and its customers and end users. MBA continues to monitor all funding votes as the posturing continues.
For more information, please contact Bill Killmer at (202) 557-2736 or Pete Mills at (202) 557-2858.
MBA Residential Board of Governors Approves 2025-2026 Policy Priorities
Last month at MBA Annual25 in Las Vegas, MBA’s Residential Board of Governors (RESBOG) approved unanimously its residential policy priorities for the new membership year.
These priorities reflect RESBOG’s continued commitment to strengthening the housing finance system, improving affordability, and ensuring regulatory and market stability across all segments of the mortgage industry. MBA’s RESBOG Chair for the 2025-2026 year is Dan Sugg, Chief Mortgage Lending Officer, Michigan First Credit Union.
Why it matters: Each year, the RESBOG policy agenda guides MBA’s residential advocacy strategy and complements the work of MBA’s policy staff and Residential Policy committees. For 2025 – 2026, RESBOG will focus on:
• Addressing persistent challenges to affordability, accessibility, and sustainability by advancing reforms that lower costs, expand supply, reduce regulatory burdens that impede government housing finance program efficiency, and enhance liquidity for private financing.
• Modernizing credit scores and reporting frameworks through supporting the implementation of VantageScore 4.0 for all loan deliveries to the GSEs and developing an alternative to the costly tri-merge credit report – such as a pilot program to test a single-file credit report – to enhance efficiency, increase competition, and reduce costs to lenders and borrowers.
• Aligning shifting AI regulatory frameworks to promote consistent, responsible state oversight, define whether AI can engage in loan originator activity, and highlight positive uses of AI in mortgage lending.
RESBOG will also continue to support MBA’s board-level task force to ensure a responsible, nondisruptive release of the GSEs from conservatorship. Additionally, it will assist the Legal Issues and Regulatory Compliance Committee in pursuing targeted reforms to Loan Originator Compensation (LO Comp) rules to enhance flexibility and improve consumer outcomes.
What’s next: MBA’s policy staff and Residential Policy committees will establish workflows to tackle each priority issue and will provide regular progress updates to RESBOG throughout the year.
For more information, please contact Brendan Kelleher at (202) 557-2779.
MBA Joins Coalition Supporting FSOC Reform Legislation
MBA last week joined a broad coalition of financial and housing organizations in a letter, led by the U.S. Chamber of Commerce, to House leaders expressing support for the FSOC Improvement Act of 2025 (H.R. 3682), bipartisan legislation sponsored by Reps. Bill Foster (D-IL) and Bill Huizenga (R-MI).
• The bill seeks to increase transparency and procedural consistency in how the Financial Stability Oversight Council (FSOC) designates nonbank financial institutions as systemically important institutions (SIFIs).
Why it matters: MBA supports a regulatory framework that prioritizes an activities-based approach to systemic risk and ensures proper coordination between FSOC and primary regulators. H.R. 3682 would establish statutory guardrails that bring greater predictability and due process to the SIFI designation process, reducing market uncertainty for nonbank financial firms, including those active in real estate finance.
What’s next: MBA will continue working with congressional offices and industry partners to advocate for policies that balance stability and consistency.
For more information, please contact Madisyn Rhone at (202) 557-2741, and Rachel Kelley at (202) 557-2816.
Senate Banking Committee Holds Nomination Hearings for FDIC, FHA, and Ginnie Mae Leaders
On Thursday, the Senate Banking Committee convened a hearing to review the nominations of Travis Hill for Federal Deposit Insurance Corporation (FDIC) Chairman, Frank Cassidy for Assistant Secretary (Federal Housing Administration (FHA) Commissioner), Department of Housing and Urban Development (HUD), and Joseph Gormley for Ginnie Mae President.
• The hearing was often contentious with partisan clashes over blame for the past culture at the FDIC, housing affordability, agency staffing issues, and banking oversight and regulation in the Trump administration. A memo summarizing the hearing can be found here.
What they are saying: Chief Lobbyist Bill Killmer sent letters of support on MBA’s behalf for the Hill, Cassidy, and Gormley nominations, which can be found here and here.
Go deeper: There was a stark divide between some Democrats and Republicans on the Committee regarding housing affordability and the best policy approaches to address the problem.
• Senators Tina Smith (D-MN) and Raphael Warnock (D-GA) pressed Frank Cassidy on rising costs, HUD employee terminations, and policies they believe disadvantage first-time homebuyers.
•Sen. Bernie Moreno (R-OH) blamed higher cost areas in the Northeastern and Western states on partisan governance by elected Democrats.
• Cassidy emphasized his focus on streamlining FHA programs and engaging in deregulatory efforts to reduce costs. Senator Catherine Cortez Masto (D-NV) also secured a commitment from Cassidy to work on FHA financing of land trusts and discussed working with Gormley on Home Equity Conversion Mortgage (HECM) issues.
What’s next: Once senators’ questions for the record have been answered by the nominees, the Banking Committee will schedule a vote to advance their nominations to the full Senate.
For more information, please contact George Rogers at (202) 557-2797 and Bill Killmer at (202) 557-2736.
MBA Offers Recommendations on White House RFI on AI
On Monday, MBA responded to the White House’s Office of Science and Technology Policy (OSTP) Request for Information (RFI) on Artificial Intelligence (AI). MBA explained that new laws and regulations on AI will create uncertainty or make it harder to use systems that the industry has relied on for decades. Additionally, the growing patchwork of state regulations is the most significant inhibitor to adopting advanced AI and the continued use of existing AI.
Why it matters: MBA has been engaged with lawmakers on both the state and federal levels to ensure that new prohibitions and rules on the use of AI do not disrupt the core mortgage origination and servicing processes.
• MBA supports greater regulatory clarity on how existing laws apply to AI, which would facilitate AI adoption by the mortgage industry, and opposes new laws restricting AI use that are largely duplicative of existing laws that already cover AI decisioning, such as fair lending laws.
Go deeper: Last year, MBA released its white paper, “AI in the Mortgage Industry,” which explains the industry’s use cases for AI, existing laws impacting AI use, and principles for lawmakers to consider as they discuss how to regulate the use of AI.
• Please see www.mba.org/stateai for more updates on AI policy.
What’s next: MBA will keep members informed about any proposed rules following the RFI.
For more information, please contact Gabriel Acosta at (202) 557-2718.
Register for MAA’s Next Quarterly Webinar: Nov. 4
With the 2026 mid-term elections roughly a year from now, the industry can expect possible policy shifts tied to a potential shift in congressional power. Attend this free webinar to hear updates on major efforts like the bipartisan ROAD to Housing Act, the future of Fannie Mae and Freddie Mac, credit score pricing, the regulation of artificial intelligence, and more.
Why it matters: Gathering early insights can help maximize advocacy effectiveness. MBA will continue working with policymakers across all levels of government to address the complexities of housing affordability.
What’s next: Attend the National Advocacy Conference (NAC), MBA’s largest in-person advocacy event on April 14-15, 2026, designed to let MBA members share their policy concerns with elected officials and make a collective impact on behalf of our industry. Register NOW!
For more information, please contact maa@mba.org or Margie Ehrhardt at (202) 557-2708.
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:
• 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
• Rethink Everything You Know About Networking: Part II – Nov. 13
• Deep Dive into Mortgage Delinquencies: Early Warning Signs – 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.
