Advocacy Update: Full House Vote on Bipartisan Housing Package Expected on Monday
Full House Vote on Bipartisan Housing Package Expected on Monday
On Monday, the full U.S. House is expected to vote on H.R. 6644, the Housing for the 21st Century Act. The bipartisan housing package, which passed the full House Financial Services Committee (HFSC) on Dec. 17 by a vote of 53-1, aims to tackle supply and affordability challenges, modernize local development, and improve government housing programs.
• Specifically, the package (see breakdown here) advances several MBA-backed reforms, including updating Federal Housing Administration (FHA) multifamily loan limits, streamlining federal housing program offerings, incrementally improving financing processes for Rural Housing Service loans, providing targeted support for construction and rehabilitation, and fostering stronger coordination among federal agencies and Congress.
• Monday’s vote is tentatively scheduled under “suspension of the rules,” a “fast-track” procedure for non-controversial bills to avoid lengthy debates and the offering of amendments. A two-thirds majority of those present and voting is needed for the bill to pass the House.
Why it matters: In advance of Monday’s vote, MBA sent its latest support letter to House leadership (read another from December) and joined two other trade letters here and here.
Go deeper: The House package was introduced on Dec. 11 by House Financial Services Committee Chair French Hill (R-AR), Ranking Member Maxine Waters (D-CA), Housing and Insurance Subcommittee leaders Mike Flood (R-NE) and Emanual Cleaver (D-MO), and a bipartisan group of lawmakers as a counterpoint to the Senate’s ROAD to Housing Act proposal.
• The Senate bill is a bipartisan package of roughly 40 aggregated housing proposals that advanced out of the Senate Banking Committee in July 2025 and was adopted by voice vote prior to the full Senate’s passed version of the Fiscal Year (FY) 2026 National Defense Authorization Act (NDAA) in October 2025. A full Senate vote on the package could happen as soon as later this month.
What’s next: MBA will continue to work with House and Senate leaders and their staffs to help reconcile differences between the two housing packages, particularly regarding their respective sections on appraisals and Rural Housing Service program reforms, once the bills proceed further on parallel tracks in both chambers.
For more information, please contact Rachel Kelley at (202) 557-2816, Madisyn Rhone at (202) 557-2741, George Rogers at (202) 557-2797, and Jeremy Green at (202) 557-2849.
House Passes Appropriations Package Including HUD Funding
On Tuesday, the full U.S. House passed a five-bill “minibus” Fiscal Year (FY) 2026 appropriations package–(as approved late last week by the Senate)–that effectively ended the four-day, partial government shutdown.
• Importantly, the enacted package includes funding for the Department of Housing and Urban Development (HUD) and the Departments of Defense, Transportation, Health and Human Services, Treasury, and Labor through Sept. 30, 2026.
• The legislation closely resembles last month’s House-passed H.R. 7148, the FY 2026 Consolidated Appropriations Act, which originally included six separate funding measures. Tuesday’s passed bill also included a two-week continuing resolution (approved by the Senate on Friday) for the Department of Homeland Security through Feb. 13.
Go deeper: Importantly, the package also extends federal authority for the National Flood Insurance Program (NFIP) to the end of the current fiscal year (through Sept. 30, 2026) – preventing a longer-term lapse that could have created “frictions” at the closing table for consumers, lenders, and other market participants.
Why it matters: In a letter last month, MBA indicated its support for H.R. 7148, the “T-HUD” appropriations “minibus” bill. H.R. 7148 includes funding levels for the Federal Housing Administration (FHA), Ginnie Mae, HUD rental assistance, housing counseling, and IT modernization that all align closely with prior FY25 levels. Appropriators crafting the package largely rejected the steep spending cuts and program eliminations first proposed last year by the Trump administration. This was especially true for the HUD budget where lawmakers provided a robust 9% spending increase overall (nearly double the President’s original HUD budget request).
Key MBA-supported provisions included in the package and now enacted through Sept. 30, 2026, include:
• $160 million for administrative expenses supporting FHA’s Mutual Mortgage Insurance (MMI) Program Account
• $56 million in funding for Ginnie Mae staffing and technology upgrades
• $57.5 million in funding for the Housing Counseling Assistance Program
• $345 million in funding for HUD’s Information Technology Fund (possibly including FHA single-family and multifamily IT modernization upgrades)
What’s next: All federal agencies relevant to real estate finance are now funded through Sept. 30, 2026, providing near-term certainty for housing and mortgage market participants. Attention will now turn to the FY 2027 appropriations process, which is expected to begin later this spring as the Trump administration releases its budget request and congressional committees begin hearings.
For more information, please contact Rachel Kelley at (202) 557-2816, Madisyn Rhone at (202) 557-2741, George Rogers at (202) 557-2797, and Jeremy Green at (202) 557-2849.
FHA Extends Compliance Date on Key Housing Requirements
The Federal Housing Administration (FHA) recently announced delays of two key housing requirements:
• An announcement to extend its temporary waiver for new construction flood elevation requirements and minimum property standards. The waiver allows homes built in flood-prone areas to be constructed without having to raise the lowest floor at least two feet above the expected flood level. Originally set to expire on February 21, 2026, the waiver will now be extended to Feb. 19, 2027.
• An announcement to extend the compliance deadline for builders to adopt the 2021 IECC requirements under the Energy Efficiency Standards for New Construction Final Rule for HUD- and USDA-financed housing, originally published in April 2024. FHA had already pushed the compliance deadline to May 28, 2026, and will now extend it again to Dec. 31, 2026, to allow additional time to review the Final Rule and consider stakeholder feedback.
Why this matters: MBA has consistently raised concerns that these policies could increase costs and create affordability challenges, and has supported reversing the Final Rules.
What’s next: MBA will continue to engage with the Trump administration as it considers steps to address housing affordability.
For more information, please contact Darnell Peterson at (202) 557-2922.
Treasury Secretary Testifies in FSOC Role Before Key House/Senate Panels
On Wednesday and Thursday, Treasury Secretary Scott Bessent testified in front of the House Financial Services and Senate Banking Committees, respectively, in his capacity as Chair of the Financial Stability Oversight Committee (FSOC). Ostensibly about the annual FSOC report required by law, both hearing appearances gave lawmakers from both parties a chance to proffer questions for Bessent on issues that directly affect credit availability, capital requirements, regulatory certainty, interest rates, the future of the housing GSEs, and the broader economic conditions shaping real estate finance.
• The House hearing can be watched at https://www.youtube.com/live/yTMIc8HWQLM, and the Senate hearing at https://www.banking.senate.gov/hearings/the-financial-stability-oversight-councils-annual-report-to-congress.
• Written summaries of the House and Senate hearings can be found here and here.
Why it matters: Between a frequent set of fiery and confrontational moments, both hearings provided insights into the likely regulatory environment in which mortgage lenders and servicers (both multi- and single-family) will encounter in the near term.
Go deeper: During the House hearing, lawmakers emphasized regulatory tailoring as essential to restoring the role of community and regional banks in mortgage lending. Legislators argued that “one size fits all” rules have constrained smaller lenders’ ability to originate mortgages, support construction financing, and provide liquidity to local housing markets—a theme with clear impact across the residential and multifamily sectors.
• The Senate hearing ranged from political point scoring to robust discussions about housing affordability, interest rates, the 10-year Treasury spread, artificial intelligence (AI), and the current status of Community Development Financial Institutions (CDFI) funding
What’s next: The two hearings illustrated Bessent’s (ergo the Trump administration’s) interest in shaping the credit, regulatory, and economic landscape – including topics that directly impact the real estate finance ecosystem. The differing perspectives of legislators mean that enacting legislation on many of the issues discussed in the hearings will be difficult. MBA will continue to engage closely with lawmakers and the administration on issues important to our industry.
For more information, please contact Rachel Kelley at (202) 557-2816, Madisyn Rhone at (202) 557-2741, George Rogers at (202) 557-2797, and Jeremy Green at (202) 557-2849.
Freddie Mac Updates One-Time Close Construction and Renovation Mortgage Requirements
On Thursday, Freddie Mac released Guide Bulletin 2026‑- 1, announcing a series of updates to its Construction-to-Permanent and Renovation Mortgage requirements designed to reduce operational friction for lenders.
Key changes in the Guide Bulletin include:
• Allowing modification of loan terms at conversion to permanent financing;
• Permitting credit, income, and employment documentation up to 540 days old at the time of conversion for certain One‑Time Close transactions; and,
• Limiting when asset documentation must be refreshed.
• Freddie Mac also clarified appraisal timing by requiring the appraisal’s effective date to be no more than four months before the Note Date for interim construction financing. They also expanded eligible uses of construction proceeds to include certain site preparation activities.
Why it matters: These updates are consistent with ongoing member feedback and align directionally with Fannie Mae’s November 2025 Seller Guide update, which reduces requalification risks by extending the validity of credit documents for certain single-close construction transactions.
What’s next: MBA will continue working with the GSEs on additional reforms to ease construction financing constraints, including improvements to capital treatment and enhanced execution in the secondary market for construction lending.
For more information, please contact John McMullen, AMP, at (202) 557-2706.
MBA and State Partners Urge Flexible Enforcement on New Jersey 2024 Annual Reports
Last week, MBA joined the Mortgage Bankers Association of New Jersey and the Mortgage Bankers Association of Eastern Pennsylvania in submitting a joint letter to the New Jersey Department of Banking and Insurance requesting reconsideration of recent enforcement actions stemming from the 2024 annual report filing cycle.
• The associations cited widespread notification and portal access issues that contributed to late filings, and they urged the Department to adopt an alternative late-fee approach rather than formal Notices of Violation. The proposed solution would preserve regulatory accountability while avoiding disproportionate business and compliance consequences for otherwise compliant lenders.
Dig deeper: The letter highlighted several issues with the Department’s handling of the process for submitting the reports:
• Delayed notifications: 2024 annual report notices, normally sent in early January, were issued only days before the filing deadline, causing licensee confusion.
• Website portal delays: The submission portal wasn’t updated for 2024 reports until roughly 48 hours before the May 1, 2025, deadline, versus the usual month-long window.
• Email delivery failures: Reminder emails went undelivered (e.g., to spam, outdated addresses, or unmonitored inboxes), leaving many unaware of the deadline.
• Servicer report confusion: Late notices (e.g., June 3, 2025) failed to specify the servicer report was late, misleading licensees who had filed lender reports.
Why it matters: A Notice of Violation can trigger a “waterfall effect,” including mandatory reporting to VA/FHA/USDA (risking sanctions or suspension), disclosures to dozens of states (causing delays/scrutiny), financial statement notes (raising borrowing costs), and investor fallout (lower prices and lost relationships). Given these costly implications and the state’s own role in the filing snafu, the joint letter urges the regulator to use administrative late fees to address these issues, rather than formal regulatory findings.
For more information, please contact William Kooper (202) 557-2737 or Liz Facemire (202) 557-2870.
From IMB26 to NAC26: Advocacy Starts Now
MBA’s Legislative and Political Affairs Team hosted its annual MORPAC Reception at #MBAIMB26, bringing industry leaders together to connect and exchange valuable insights—accompanied by the upbeat sound of steel drums on Amelia Island. Although the evening was too chilly to gather outdoors, attendees gained a deeper understanding of how collective influence strengthens their ability to reach policymakers and advocate for the issues that shape their business success.
• A special thanks to our advocacy event sponsors: Cornerstone Servicing, Eustis Mortgage, and Standard Mortgage Corp..
Why it matters: IMBs face a rapidly evolving policy landscape, and MBA’s advocacy programs ensure their priorities are heard by the lawmakers who shape the rules governing their businesses.
What’s next: Take the next step by showing up and registering for MBA’s National Advocacy Conference (NAC) this April—the industry’s largest advocacy event and most effective way to represent your state at the national level. By sharing your firsthand experiences with elected officials, you help drive meaningful change for the real estate finance industry and the communities it serves. Register now: https://bit.ly/49IR0XX.
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:
• Marketing Mastery for Loan Originators: Building a Consistent, High-Quality Pipeline – Feb. 9
• Renovation Lending Today: Market Trends, Best Practices & 203(k) Insights – Feb. 12
• Comparing State Community Reinvestment Laws for Independent Mortgage Banks in NY, IL, and MA — March 11
• How Secondary Marketing Powers Mortgage Lending – April 1
• 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.
