Advocacy Update: Broeksmit on Competition at the GSEs; MBA Shares Views on GSEs at Treasury, FHFA Meetings; Miran Fed Board Confirmation
Last week, MBA President and CEO Bob Broeksmit, CMB published a new blog post: “Why Preserving Competition Between Fannie Mae and Freddie Mac Matters”
MBA Shares Views on GSE Release/Re-privatization at Treasury, FHFA Meetings
Also last week, MBA President and CEO Bob Broeksmit, CMB, (and senior MBA staff) along with other trade group CEOs and think tank leaders, participated in roundtable meetings on the futures of Fannie Mae and Freddie Mac (the GSEs) at the Treasury Department and the Federal Housing Finance Agency (FHFA).
Go deeper: In what MBA views as a positive step, Monday’s meeting at the Treasury Department was largely a listening session for senior Treasury staff working on this issue. It was clear from the line of questions that Treasury – with tax and tariff issues now largely behind them – is now fully engaged in its role as both the owner of 80% of the GSEs and as the steward of the U.S. fixed income markets. Rather than focusing exclusively on the investment banking aspects of any secondary offering or release, Treasury appears to be equally focused on the complex market implications and policy issues that come with charting a path to ending the GSEs’ conservatorship.
• MBA shared its list of core principles developed by its Board-level GSE Task Force (read it here). Treasury staff throughout the meeting reiterated Secretary Scott Bessent’s “north star” that any efforts to reform the housing finance system will be undertaken in an “informed, careful and calibrated” approach to ensure there is no disruption to system or upward pressure on mortgage rates.
• On Tuesday, MBA and other trade associations attended a similar roundtable convened by FHFA Director Bill Pulte, which largely covered many of the same topics as the Treasury meeting. MBA also shared the same core principles document and noted for the record the significant alignment around those principles that has emerged over the past decade.
The bottom line: As plans evolve, MBA will continue its ongoing engagement efforts with the Administration and Congress to ensure critical regulatory and market structure/market conduct issues are addressed, including:
• Preserving competition between at least two GSEs;
• Ensuring FHFA has an obligation to maintain a level playing field with respect to pricing, pilots, product, and underwriting variances;
• Preserving a bright line to ensure the GSEs do not unfairly compete with the primary market;
• Maintaining a robust level of bank-like capital; and,
• Establishing a well-defined, paid-for federal backstop against the GSEs’ MBS, that could be tapped only after all private capital is exhausted.
What’s next: The Treasury Department is hosting another meeting next week that will cover the GSEs’ multifamily businesses. MBA SVP of Commercial/Multifamily and Strategic Industry Engagement Jamie Woodwell will attend.
• Additionally, several MBA members are participating in Treasury’s ongoing GSE meetings next week (lenders, non-bank servicers, mortgage insurers, investment banks, regional banks).
For more information, please contact Sasha Hewlett at (202) 557-2805.
REGISTER: September 16 Town Hall with MBA Leadership
On Tuesday, September 16, 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.
Senate Banking Committee Advances Miran Nomination to Federal Reserve Board
Last Wednesday, the Senate Banking Committee (SBC) met to act on the nomination of Dr. Stephen Miran, to be a Member of the Board of Governors of the Federal Reserve System. The Committee reported his nomination to the Senate floor on a party-line 13-11 vote.
Why it matters: At last week’s nomination hearing, numerous senators engaged in significant partisan debate over President Trump’s economic policies and the independence of the Federal Reserve. This was a particular point of emphasis within the brief opening remarks made by SBC Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA).
Go deeper: In addition, Senator Jack Reed (D-RI) stated his ongoing concerns about Dr. Miran, particularly his assertion that he would take an unpaid leave of absence, rather than resign, from the President’s Council of Economic Advisers (if confirmed by the Senate as a Fed Governor). Senator Reed called for Dr. Miran to share the legal basis for taking such an action.
What’s next: At the time of this writing, the nomination is likely to be considered on the Senate floor this coming Monday – in time for Miran, if confirmed, to be sworn in and able to participate in the Federal Open Market Committee (FOMC) meeting next week (September 16-17).
For more information, please contact George Rogers at (202) 557-2797 or Ethan Saxon at (202) 557-2913.
House Energy & Commerce Examines Building and Appliance Costs in New Homes
Last Wednesday, the House Energy and Commerce Committee held a hearing titled, “Building the American Dream: Examining Affordability, Choice, and Security in Appliance and Buildings Policies.”
• The hearing focused on appliance and building policies that directly impact the cost, design, and marketability of residential properties. For example, federal directives to adopt international energy codes, such as the 2021 International Energy Conservation Code (IECC), came under scrutiny from Republicans for adding tens of thousands of dollars to new home prices.
• Watch the hearing here, and read the full hearing summary here.
Why it matters: MBA will continue to monitor the debate over electrification, natural gas bans, and appliance standards with an eye on legislation that could reshape the affordability landscape for builders, developers, and homeowners.
What’s next: Several pieces of legislation discussed during this hearing affecting everything from appraisals, permitting and grid reliability standards, and buyer demand for new homes are likely to be introduced in the coming weeks.
For more information, please contact Rachel Kelley at (202) 557-2816 or Madisyn Rhone at (202) 557-2741.
House Financial Services Hearing Explores Reforms to FDIC Resolution Process and Community Bank Funding Rules
Last Tuesday, the House Financial Services Subcommittee on Financial Institutions held a hearing titled, “Promoting the Health of the Banking Sector: Reforming Resolution and Broadening Funding Access for Long-Term Resilience.”
• Members from both parties examined legislative proposals to modernize the Federal Deposit Insurance Corporation’s (FDIC) resolution framework, expand reciprocal deposit use, and lower the Community Bank Leverage Ratio (CBLR). Lawmakers also voiced bipartisan support for Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), emphasizing their role in expanding homeownership and access to capital in underserved areas.
• A summary of the hearing can be found here.
Why it matters: These proposals could increase funding stability for community lenders and improve access to mortgage credit in low- and moderate-income communities.
What’s next: MBA will continue to engage with policymakers to ensure housing and real estate finance priorities are reflected within any proposed reforms that may advance.
For more information, please contact Rachel Kelley at (202) 557-2816 or Madisyn Rhone at (202) 557-2741.
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: Jumbo Loans – Sept. 16
• On Your Way with LPA: Feedback to Impact – Sept. 16
• Strategies for Improving Revenue by 10-25 BPS in Today’s Market – Sept. 23
• Smart Strategies to Retain, Recapture, & Grow Your Servicing Portfolio – Sept. 25
• Non-Agency Training Series: Alt Doc and Interest-Only – Sept. 30
• Leveraging Rental Payment History – Part I: Current GSE Policy and Recent Enhancements – Nov. 6
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.
