Advocacy Update: HUD Proposed Rule on Disparate Impact Liability; Ginnie Mae Digital Collateral Program Expansion; more

HUD Releases Proposed Rule Changing Scope of Disparate Impact Liability

Last Tuesday, the Department of Housing and Urban Development (HUD) released a proposed rule that would remove all references to discriminatory impact liability from the 2013 rules promulgated under the Fair Housing Act and leave it to the courts to determine the scope of that liability. 

• MBA’s summary of the proposed rule is here. Comments are due on February 13, 2026.  

Why it matters: The proposed rule would turn over responsibility for determining the scope of disparate impact liability to the courts, and states that several factors prompted HUD to reconsider its discriminatory effects regulation. Recent Trump administration Executive Orders (14173 and 14281) emphasized merit-based opportunity and specifically called agencies to limit disparate-impact liability and enforcement. Additionally, given that HUD interpretations are given far less deferential weight and may be rejected by the courts, HUD believes that it is more appropriate for courts to make determinations related to the interpretation of disparate impact liability under the FHA.  

• Note that removing references to disparate impact liability from HUD regulations does not mean members are not liable for policies with a disparate impact. The Supreme Court in Inclusive Communities has determined that disparate impact liability is cognizable under the Fair Housing Act. However, the scope of that liability and the standards of proof will now be determined by Inclusive Communities and the courts.  

Go deeper: MBA has criticized the current 2013 ruling in the past and previously urged HUD to revise the Rule to align its burdens and standards of proof with those articulated in the Supreme Court’s Inclusive Communities decision.  

What’s next: MBA will solicit member feedback and submit a comment letter responding to the proposed rule by February 13, 2026.

For more information, please contact Justin Wiseman at (202) 557- 2854 or Alisha Sears at (202) 557-2390.

Ginnie Mae Expands Digital Collateral Program to Include PIIT Transfers for eNote-Backed Securities

On Tuesday, Ginnie Mae issued an All Participant Memorandum (APM 26-01) announcing that Ginnie Mae MBS backed by eNote collateral will be eligible to transfer via Pools Issued for Immediate Transfer (PIIT) program. This change is effective for issuances dated February 1, 2026.

Why it matters: Expanding eNotes collateral into PIIT supports broader adoption of eNotes and gives issuers greater flexibility in structuring and transferring pools — which helps with liquidity and operational efficiency.

What’s next: MBA will continue to advocate for increased flexibility in the use of eNotes.

For more information, please contact Kaitlin Hildner at (202) 557-2933.

New York Governor Hochul Releases Pro‑Housing Agenda 

New York Governor Kathy Hochul delivered her annual State of the State address last week, providing an overview of her 2026 legislative agenda. This is an election year for Governor Hochul, and her remarks primarily focused on affordability. Important highlights included a combination of major housing‑supply reforms with broader affordability measures to lower costs for renters, homeowners, and working families.

Why it matters: To accelerate housing construction, Governor Hochul proposed a “Let Them Build” package to modernize the State Environmental Quality Review Act (SEQRA). The proposal would allow by-right or low-impact housing projects—and certain clean water, green infrastructure, parks, and childcare projects on previously disturbed land—to avoid duplicative environmental reviews, reducing costs and delays.

Dig deeper: The plan also contemplates a two‑year cap on SEQRA environmental impact statement (EIS) reviews, a new Generic EISs for common housing and renewable energy projects, and modernizes permitting with a new “Smart Access” tracking platform among other initiatives. One of these is the creation of a first‑in‑the‑nation profitability check on home insurers, and an expansion of automatic safety and weatherization discounts (including for multifamily buildings).

• Governor Hochul will also seek long‑ and short‑term insurance cost solutions to ease pressure on rents, co‑op carrying charges, and homeowners’ budgets.​

What’s next: The proposals must now be converted into legislative language that is likely to be included in the proposed state budget to be released in the coming weeks. MBA and the NYMBA will work closely together to analyze these initiatives and report back to appropriate member committees.

For more information, please contact William Kooper at (202) 557-2737 or Liz Facemire at (202) 557-2870.  

MAA’s Next Quarterly Webinar: January 29

On ith MBA’s National Advocacy Conference just a few months away, the Mortgage Action Alliance’s (MAA) upcoming webinar will spotlight this premier advocacy event, scheduled for April 14–15. 

• Join MBA’s Legislative and Political Affairs Team to explore how national-level engagement strengthens state advocacy efforts and amplifies the industry’s collective voice. This quarterly webinar will feature a timely briefing on the year-end congressional closeout, an overview of the Q1 legislative agenda, and a look at MBA’s key policy priorities in this pivotal mid-term election year.

Why it matters: As our nation marks its 250th birthday, there’s no better moment than now to join hundreds of industry advocates and claim your seat at the table where meaningful change takes shape!

What’s next: Register for Part II of MBA’s State and Federal Advocacy Webinar & Fly-In Series, hosted by the California Mortgage Bankers Association, on Wednesday, January 21, at noon PT/3:00 PM ET. Part II will highlight the West and Midwest regions—but the session is open to MAA and MBA members nationwide.

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:

• The High-Performance Manager: Proven Systems to Lead, Recruit, & Coach Winning Sales Teams – Jan. 20
• Decoding Customer Satisfaction and Loyalty: Key Insights from J.D. Power’s Latest Mortgage Studies – Jan. 21
• 1099 vs. W-2: Avoiding Costly Compliance Mistakes – Jan. 22
• 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

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.