Advocacy Update: Trump Administration Republishes Spring 2025 Regulatory Agenda
Trump Administration Republishes Spring 2025 Regulatory Agenda
Last week, the Trump administration republished the Spring 2025 Unified Agenda of Regulatory and Deregulatory Actions, outlining the regulatory actions that federal administrative agencies plan to issue over the next six months.
• The rules and proposals published by federal agencies can have significant impacts on lenders and borrowers. The full lists for the Consumer Financial Protection Bureau (CFPB), Federal Housing Finance Agency (FHFA), the federal banking agencies (FDIC, OCC and Federal Reserve) and the Department of Housing and Urban Development (HUD) are now live after being taken down temporarily a few weeks ago.
Why it matters: In addition to already-announced rulemakings of note, including the proposed rescissions of the CFPB’s nonbank registry rule and FHFA’s fair lending, fair housing, and equitable housing finance plan rule, activity MBA spotted in the Spring 2025 agenda includes:
• A withdrawal of FHFA’s reproposed suspended counterparty rule and publication of a new proposed rule amendment;
• An imminent Advanced Noticed of Proposed Rulemaking (ANPR) “seeking information in advance of preparing a proposed rule to rescind all or parts of the discretionary compensation provisions of the Originator Compensation Requirements under the Truth in Lending Act (Regulation Z);
• An entry finalizing the CFPB’s streamlined loss mitigation proposal;
• The SEC reviewing Reg AB II, which has been a barrier to private-label RMBS;
• Rescission of HUD’s Federal Flood Risk Management Standard (FFRMS); and
• Federal banking agency proposals dealing with risk based capital (including Basel 3) and the Community Reinvestment Act.
What’s next: MBA will work with members to monitor and respond to proposals put forth by the government agencies that impact residential, multifamily, and commercial lending activities.
For more information, please contact Justin Wiseman at (202) 557-2854, Alisha Sears at (202) 557-2930, Brendan Kelleher at (202) 557-2779 or Sasha Hewlett at (202) 557 -2805.
MBA Responds to House Financial Services Committee’s RFI on Gramm-Leach-Bliley Act
Recently, MBA submitted a letter in response to the House Financial Services Committee’s (HFSC) Request for Information (RFI) on Title V, Subtitle A, of the Gramm-Leach-Bliley Act (GLBA).
• The House Energy and Commerce (E&C) Committee, separate from parallel efforts being conducted by the HFSC, will be introducing comprehensive data privacy legislation in the coming weeks.
Why it matters: MBA has historically advocated for a uniform federal data privacy standard, i.e., for GLBA considerations to preempt state privacy laws, and warned against requiring consent for each data point — which could impede loan processing and delay mortgage transactions.
What’s next: MBA will continue to advocate for these priorities as both the E&C and HFSC committees share their separate legislative drafts and hold hearings and markups in their respective committees.
For more information, please contact Rachel Kelley at (202) 557-2816, Madisyn Rhone at (202) 557-2741, and Gabriel Acosta at (202) 557-2811.
Senate Banking Committee Holds Federal Reserve and HUD Nominations Hearing
Last Thursday, the Senate Banking Committee held a hearing to consider the nominations of Ben Hobbs and Ronnie Kurtz to be HUD Assistant Secretaries; Dr. Stephen Miran, to be a Member, Board of Governors of the Federal Reserve System; and Christopher Pilkerton and Jonathan Burke to be Assistant Secretaries at the Treasury Department.
A summary of the hearing can be found here.
Why it matters: The hearing featured significant partisan debate over President Trump’s economic policies and the independence of the Federal Reserve, particularly with respect to its conduct of monetary policy. Senators also gave intense scrutiny to Dr. Miran’s remark that he would take a leave of absence, rather than resign from the President’s Council of Economic Advisers, if confirmed by the Senate, in effect providing an Executive Branch employee a seat on the Board.
What’s next: The Committee is expected to hold an executive committee meeting to vote on the nominations next week.
For more information, please contact Ethan Saxon at (202) 557-2913 or George Rogers at (202) 557-2797.
MBA Files Amicus Brief in Tederick Case Regarding Application of Borrowers’ Prepayments
Last Wednesday, MBA filed an Amicus Brief in the Tederick case. The case centers on how a subservicer applied mortgage payments, particularly when the borrowers submitted both a scheduled monthly payment and a prepayment.
• The Tedericks alleged that the subservicer improperly applied the scheduled payment first, followed by the prepayment, contrary to what they argued was required under the loan documents and Fannie Mae Servicing Guidelines. They claimed this order of application caused them to pay more interest than necessary.
• The Tedericks further alleged that the subservicer continued a longstanding pattern established by prior servicers, applying scheduled payments before prepayments instead of the other way around. Because the Note and Deed of Trust did not expressly dictate the order of application, the court considered external evidence, including the Fannie Mae Guidelines.
• They also argued that this conduct violated the West Virginia Consumer Credit and Protection Act (WVCCPA) and amounted to unjust enrichment and conversion. The Eastern District of Virginia granted summary judgment for the subservicer, finding that the Tedericks failed to show the subservicer’s conduct was fraudulent, deceptive, or misleading as required under the WVCCPA.
• The court further concluded that even if payments had been misapplied, the subservicer’s actions reflected an attempt to comply with Fannie Mae guidelines and did not meet the statute’s intent requirement. The Tedericks appealed.
Go deeper: The filing explains why the district court correctly granted summary judgment. Specifically, if the subservicer did not actually overcharge interest, then no WVCCPA violation occurred.
• MBA urged the Fourth Circuit to affirm on that basis and to avoid addressing the unsettled question of whether the WVCCPA requires proof of intent. The brief also emphasized the importance of maintaining a uniform interpretation of Fannie Mae’s and Freddie Mac’s uniform instruments to ensure consistent practices across mortgage originators, servicers, and secondary market participants nationwide.
What’s next: MBA thanks the team at Alston & Bird for their assistance in preparing this brief. We will continue to keep members updated as the case progresses.
For more information, please contact Justin Wiseman at (202) 557- 2854 or Alisha Sears at (202) 557-2390.
CFPB Releases ANPR on Section 1033 Open Banking Rule
On Friday, August 22, the Consumer Financial Protection Bureau (CFPB) released an advanced notice of proposed rulemaking (ANPR) related to implementation of the Section 1033 Open Banking Rule (Final Rule). The current rule requires depository institutions and nonbanks to make certain consumer financial information available to consumers and to third parties they designate. This rule is meant to promote open banking, a system of entities sharing personal financial data with consumer authorization. A summary of the current rule is available here.
• The ANPR asks questions related to who can serve as an agent making a consumer request for information, whether covered entities should be able to charge third parties for accessing consumer data, and the threat and cost-benefit assessments for data security associated with Section 1033 compliance.
Go deeper: This ANPR represents a change of view in how the Trump administration views open banking. The CFPB previously stated in court that the Final Rule undermines consumer privacy and data security and impermissibly restricts entities from charging third parties for access to consumer data.
• Subsequently, the CFPB filed a motion to stay the Final Rule, citing marketplace developments and a desire to substantially revise the rule with broader stakeholder input. This pause marked a shift from the CFPB’s earlier efforts to vacate the rule entirely and opens the door for a revised framework that could reshape the future of open banking.
What’s next: MBA will hold a call to develop a response to the ANPR. Please reach out if you would like to be included in this effort.
For more information, please contact Justin Wiseman at (202) 557- 2854, Alisha Sears at (202) 557-2390, or Gabriel Acosta at (202) 557-2811.
New York Reproposes CRA Regulation for IMBs
Last Wednesday, the New York State Register (see page 7) included the announcement that the New York Department of Financial Services (NYDFS) was reproposing, for a 45-day comment period, rules to implement the New York’s 2021 law to impose Community Reinvestment Act (CRA) mandates on independent mortgage banks (IMBs). MBA has led a coalition of allied trade groups, including the New York MBA, in twice commenting on this draft rule at different stages of consideration – during December 2024 and again last April – and objected to multiple provisions.
Why it matters: In the initial review by MBA of this new draft of the regulations it appears several small edits were made along with the addition of two key definitions intended to provide greater clarity. However, the new language does not include any changes to key points made in previous letters, such as inappropriate limits on the CRA consideration of purchased loans.
• The two new definitions are: “qualified investment” which is defined as “a lawful investment, deposit, membership share, or grant that has as its primary purpose community development, and “special purpose credit program” which is defined as “any credit program offered by a mortgage banker to meet special social needs which is in conformity with and explicitly authorized by the Equal Credit Opportunity Act (15 U.S.C. § 1691(c)) and Regulation B (12 C.F.R. § 1002.8).”
What’s next: MBA will reassemble its coalition partners and the New York MBA to continue to review the proposal and develop written comments to NYDFS.
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.
REMINDER: Prepare for NMLS Changes Coming on Sept. 20, 2025
As we have reported previously, the NMLS is launching significant changes as part of its broader system modernization efforts. MBA encourages members’ licensing and registration staff to familiarize themselves with the new system ahead of this year’s licensing renewal season, as the layout, bookmarks and organizational structure of the system will be significantly different.
The key updates to the system include:
• A modernized NMLS Resource Center with new navigation and content;
• New, streamlined individual application process for individual applications;
• System updates for new policies such as new remote work policies and the adoption of the latest Mortgage Call Report (MCR) Form Version 7; and an
Updated policy guidebook.
Why it matters: The changes are all effective September 20, 2025, and MBA members are encouraged to review the materials on the NMLS Modernization Resource Center. This includes FAQs, recorded Town Hall webinars, release notes, PowerPoints, and much more.
What’s next: MBA members can attend the MBA’s Compliance and Risk Management Conference on Sept. 28-30 in D.C., where CSBS staff and industry experts will review and discuss these changes.
For more information, please contact William Kooper (202) 557-2737 or Liz Facemire (202) 557-2870.
Last Chance to Register for the MAA Quarterly Webinar on Sept. 10
On Wednesday at 3:00 PM ET, join MBA’s Legislative and Political Affairs Team for the next Mortgage Action Alliance (MAA) Quarterly Webinar, which will cover expectations for the remaining congressional agenda in 2025 and beyond.
• Congress has returned from its traditional congressional August recess, and lawmakers are faced with a busy and contentious legislative session with various policy issues and budget matters on the agenda, including funding the government beyond September 30th. Register now for this can’t-miss virtual event!
Why it matters: MAA’s Quarterly Webinar Series provides valuable insights into the legislative process, policy landscape, and addressing key issues impacting the real estate finance industry, allowing MBA and MAA members to effectively engage in advocacy year-round.
What’s next: Register to attend MBA’s National Advocacy Conference (NAC), taking place April 14-15, 2026, at The Westin DC Downtown. Join hundreds of industry advocates to meet with and educate policymakers on issues impacting your businesses and customers. It’s never too early to make your plans!
• Register by March 2, 2026, to receive the early bird rate. MBA offers special rates for members of MBA’s young professionals’ network (mPact), the Certified Mortgage Banker (CMB) Society, and group rates for MBA member companies as well.
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:
• 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.
