Advocacy Update: MBA’s Broeksmit, Industry Leaders Meet With Treasury Secretary
MBA’s Broeksmit, Industry Leaders Meet with Treasury Secretary
On Tuesday afternoon, MBA’s President and CEO, Bob Broeksmit, CMB, and Senior Vice President for Legislative and Political Affairs (LPA) Bill Killmer led a group of single-family and commercial/multifamily MBA member executives to meet with Treasury Secretary Scott Bessent and members of his senior staff.
• The group, which included all three MBA Officers as well as other key association member CEOs, discussed a broad range of current policy priorities with the Secretary and his Treasury team, including housing affordability recommendations, bank capital rules, policies related to the housing GSEs (Fannie Mae and Freddie Mac), the Trump administration’s recent Executive Order designed to ensure that large institutional investors not buy single-family homes that could otherwise be purchased by families, and real estate finance market conditions (broadly).
Go deeper: Broeksmit and the MBA leadership thanked Secretary Bessent for his Tuesday social media post reaffirming his support for the federal banking agencies’ planned regulatory capital reforms designed to allow banks to provide affordable mortgage credit more readily to consumers and to boost liquidity for mortgage servicing rights and warehouse lending for IMBs.
Why it matters: The MBA delegation discussed affordability proposals designed to provide immediate borrower savings at the closing table, including ending the tri-merge credit reporting requirement and allowing for a single-file framework, responsibly reducing single-family mortgage insurance premiums, and coordinating reduced Loan Level Price Adjustments (LLPAs) at the GSEs.
• The group also engaged in a dialogue with Secretary Bessent, Treasury Under Secretary for Domestic Finance Jonathan McKernan, Deputy Assistant Secretary for Capital Markets Ethan Fallang, and Director of Policy and Planning Hunter McMaster on other items such as mortgage market conditions (including important regional distinctions) and the holistic structure of the current mortgage ecosystem – including the vital roles played by both IMBs and depositories.
What’s next: MBA will continue to advocate for its preferred policy outcomes on all priority items discussed with the senior Treasury team – including both legislative and regulatory solutions.
For more information, please contact Pete Mills at (202) 557-2878, Mike Fratantoni at (202) 557-2935, and/or Bill Killmer at (202) 557-2736.
Fed Vice Chair Bowman Previews MBA-Backed Mortgage Lending Reforms; MBA Leads Joint Basel III Letter
Last Monday, Federal Reserve Vice Chair of Supervision Michelle Bowman in a speech highlighted the post-2008 retreat by banks from mortgage lending and servicing, questioned whether capital rules are over-calibrated, and signaled targeted reforms to revive prudent bank participation without compromising safety and soundness.
• Bowman later in the week emphasized similar themes and previewed the forthcoming Basel III Endgame re-proposal at speeches at the Exchequer Club in Washington, D.C., and the Federal Reserve Bank of Atlanta 2026 Banking Outlook Conference.
Why it matters: Bowman pointed to the 2013 capital treatment of mortgage servicing rights (MSRs) and non–risk-sensitive mortgage risk weights as potential drivers of the shift away from mortgage bank lending and previewed proposed changes, citing the Basel III re-proposal (expected as soon as March), that would remove the MSR deduction from capital, seek comment on the appropriate risk weighting for MSRs, and introduce greater loan-to-value sensitivity for mortgages held on bank balance sheets.
Go deeper: For years, MBA has stressed that banks play a critical role in the mortgage lending and servicing markets – both directly and indirectly by financing IMBs – and that the current capital rules keep banks from playing a larger role in these markets. MBA has highlighted the need to address both the punitive 250% MSR risk weight and the 25% cap on MSAs that a bank is allowed to include in Common Equity Tier 1 capital.
On Friday, MBA led a broad, joint trades letter to the banking agencies that expressed strong support for the renewed effort to reexamine and repropose a revised Basel III re-proposal.
The group’s recommendations on improving housing affordability through bank capital modernization include, among others:
• Reducing the punitive capital treatment of MSRs;
• Adopting more granular, LTV-based risk weights;
• Lowering the capital treatment of mortgage warehouse credit facilities,
• Properly recognize private mortgage insurance as credit enhancement; and,
• Ensuring predictable capital treatment for credit risk transfers.
What’s next: MBA is eager to review the forthcoming Basel III proposal and engage in the formal comment process, and stands ready to work with the Federal Reserve and other regulators on a balanced framework that supports sustainable mortgage origination, warehouse lending, robust servicing capacity, and continued access to affordable home financing offered by both depositories and independent mortgage banks.
For more information, please contact Pete Mills at (202) 557-2878 and Fran Mordi at (202) 577-2860.
MBA Responds to HUD’s Disparate Impact Proposed Rule
Recently, MBA submitted comments in response to the Department of Housing and Urban Development’s (HUD) proposed rule that would remove all references to disparate impact liability from the 2013 rules promulgated under the Fair Housing Act (the FHA). The proposed rule would turn over responsibility for determining the scope of disparate impact liability to the courts. MBA’s summary of the proposed rule is here.
• MBA has long supported lending equality and regulatory efforts to prevent housing discrimination and supports a disparate impact standard that is fully consistent with Supreme Court precedent and implements the Fair Housing Act’s requirements with a clear legal framework to address unlawful discrimination.
• Stakeholders need a durable disparate-impact standard that is aligned with the Inclusive Communities decision. The proposed rule allows the Supreme Court precedent to clearly control, ensuring that anti-discrimination standards preserve the ability of regulated entities to make practical and profit-driven business decisions essential to a functioning market.
Go deeper: MBA has criticized the current 2013 HUD rule in the past, and urged HUD to revise it to align its burdens and standards of proof with those articulated in the Supreme Court’s Inclusive Communities decision.
• It is critical to note that removing references to disparate impact liability from HUD regulations does not mean market participants are no longer liable for policies with a disparate impact. The Supreme Court in Inclusive Communities has already determined that disparate impact liability is cognizable under the FHA. However, the scope of that liability and the standards of proof will now be determined in the courts and bound by framework in Inclusive Communities.
What’s next: MBA will keep members informed about any resulting regulations from this proposal.
For more information, please contact Justin Wiseman at (202) 557- 2854 or Alisha Sears at (202) 557-2390.
Volunteer Advocacy Leaders Drive Policy Discussion at #MBAServicing26
MBA’s Advocacy Programs (MAA, MORPAC, and NAC) hosted a breakfast at #MBAServicing26, led by volunteer advocacy leadership from the MORPAC Steering Committee.
Go deeper: MORPAC Chairwoman Nanci Weissgold of Alston & Bird, LLP, along with Vice Chairs Ryan Black of Black, Mann & Graham, L.L.P., and Rhiannon Bolen of Grid151, guided a substantive, high‑energy conversation on the policy and regulatory issues shaping today’s servicing landscape. They emphasized how MBA’s political programs equip members to engage effectively with policymakers and strengthen the industry’s collective voice.
• A special thank‑you to our advocacy event sponsor: Alston & Bird, LLP.
Why it matters: Servicers are navigating an increasingly complex policy and regulatory environment. MBA’s advocacy efforts ensure their priorities are elevated with lawmakers (as needed) – and, in turn, other policymakers – who shape the rules governing servicing-related businesses.
What’s next: Take the next step by registering for MBA’s National Advocacy Conference (NAC) this April — the industry’s largest grassroots participatory event and the 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 our MBA members serve.
Register now: https://bit.ly/49IR0XX.
For more information, please contact maa@mba.org or Margie Ehrhardt.
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:
• Comparing State Community Reinvestment Laws for Independent Mortgage Banks in NY, IL, and MA — March 11
• Expedite Your Prequalification Process – March 11
• How Secondary Marketing Powers Mortgage Lending – April 1
• Drilling into Mortgage Accounting – April 22
• 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.
