MBA Advocacy Update: MBA Reactions on FOMC, Q2 GDP; FHFA Duty to Serve Proposal Letter; FHA Waives Well Water Requirements; more

MBA Comments on FOMC Decision and Second-Quarter GDP

The Federal Reserve held the federal funds rate at a target range of 3.50-3.75% on Wednesday, while new Second-Quarter 2026 GDP data released on Thursday showed the U.S. economy grew at a 1.5% annual rate.

Read MBA SVP and Chief Economist Mike Fratantoni’s commentary on each report:

• FOMC decision
• Q2 GDP

For more information, please contact Mike Fratantoni at (202) 557-2935.

MBA Offers Recommendations to FHFA Duty To Serve Proposal

MBA recently submitted comments to the Federal Housing Finance Agency (FHFA) in response to its Enterprise Duty to Serve Underserved Markets Proposed Rule.

• The proposed rule aims to enable Fannie Mae and Freddie Mac (the GSEs) to better serve the needs of very low-, low-, and moderate-income families in the manufactured housing, affordable housing preservation, and rural housing markets through greater innovation and reduced administrative burden.

MBA’s comment letter affirmed its support of the GSEs’ DTS mandate and efforts to improve the program by expanding its effectiveness and impact, reducing administrative burdens, and improving efficiency. The letter also expressed appreciation that many of the changes in the newly proposed regulation are responsive to recent efforts by the Administration to promote affordable housing.

Go deeper: The proposal has a clear focus on manufactured housing and specifically asks about expanding the manufactured housing definition. While supportive of changes that could expand that market, MBA recommended that FHFA take a measured approach to expanding this definition. As innovation in factory-built housing continues, financing and collateral policy should evolve alongside product innovation.

• Modernizing the manufactured housing definition is an important first step, but maximizing the effectiveness of the DTS program will also require continued attention to valuation practices, secondary-market execution, and operational considerations that affect lender participation.
• The letter also recommended maintaining an appropriate public comment period, allowing requests to update submitted plans in response to specific market changes, and adopting a “do no harm” approach to ensure the proposed rule does not lead to unintended consequences.

What’s next: MBA looks forward to continuing to work with FHFA and the GSEs as the rule moves toward finalization and will keep members informed of key developments throughout the process.

For more information, please contact Sasha Hewlett at (202) 557-2805.

FHA Waives Well Water Distance Requirements for Existing Homes

On Monday, the Federal Housing Administration (FHA) announced that effective immediately, a waiver of its well water distance requirements for existing construction when the property meets local jurisdiction standards and the mortgagee documents acceptable water-testing results.

• The change removes a potential barrier to FHA financing in communities where local authorities have already determined that shorter distances are safe and compliant. The waiver does not apply to new construction.

Why it matters: The waiver aligns with MBA’s recent advocacy urging FHA to modernize its Minimum Property Requirements (MPRs) by eliminating outdated or duplicative standards and deferring to appropriate state and local requirements.

What’s next: MBA will continue to engage with FHA, including continuing to advocate for it to align its MPRs with those of the GSEs.

For more information, please contact Darnell Peterson at (202) 557-2922.

MBA’s CEO Listening Tour Brings Industry Leaders Together in Detroit

On Thursday, MBA’s CEO Listening Tour brought mortgage industry leaders together in Detroit for candid, peer-to-peer conversations with MBA President and CEO Bob Broeksmit, CMB, on the issues shaping today’s market.

Go deeper: Hosted by MBA 2026 Chair-Elect Owen V. Lee, Esq., CEO of Success Mortgage Partners, Inc., and Tim Ross, CEO of Ross Mortgage Corp., the event welcomed CEOs, senior executives, and MBA staff for an open exchange of ideas, industry updates, and member feedback.

• Discussions focused on key industry topics, including LO Comp, TRID, the ROAD to Housing Act, operational efficiencies, affordability challenges, and the future of mortgage lending. Members also shared perspectives on the transition to a single credit score, while receiving updates on housing market trends and networking at a reception hosted by Rocket.

Why it matters: The CEO Listening Tour gives members a direct opportunity to share real-world challenges, exchange perspectives with industry peers, and help inform MBA’s advocacy and policy priorities. The value extends beyond the topics discussed, fostering candid dialogue, meaningful peer connections, and insights that help shape the future of the industry.

What’s next: MBA will continue bringing the CEO Listening Tour to cities across the country, creating opportunities for members to engage with MBA leadership and fellow mortgage executives.

• Feedback gathered during these events also helps inform member engagement initiatives, including participation in residential policy groups, networks, councils, and committees. Members are encouraged to attend when the tour comes to their city and add their voice to the conversation.

For more information, please contact Tamara King at (202) 557-2758 or Monique Ellis at (202) 557-2856.

MBA Attends National Conference of State Legislatures on Behalf of Members

Last week, MBA staff attended the National Conference of State Legislatures (NCSL) Policy Summit in Chicago.

• The Summit focuses on pressing issues that state legislators are currently addressing and offers a forum to discuss potential solutions and gain insight into legislative priorities for 2027.

Go deeper: While this Summit covers all industries, it did offer panels focused on affordability, the ongoing housing shortage, and artificial intelligence (AI) in financial services. The housing supply concerns included discussions on the need to increase the availability of manufactured housing and improve, or remove, zoning restrictions.

• The AI in financial services panel included representatives from Rocket Mortgage, the Financial Health Network, Wisconsin Legislative Counsel, and the North Carolina Commissioner of Banks. This panel included discussions on the current level of regulation for mortgage lenders around fair lending and privacy.

Why it matters: During conversations with attendees, MBA shared national perspectives and ongoing work related to these areas while raising the profile of MBA’s partner associations in their respective states. Additionally, MBA was able to highlight industry views on AI policy and practices to help clarify the implications and benefits of AI usage in housing finance. The summit provides valuable insights into how these issues are being addressed across states, shaping future legislative approaches.

What’s next: MBA will continue to promote its members and partner associations in these national forums and adjust state advocacy strategy based on information gathered from this event.

For more information, please contact Liz Facemire, CMB at (202) 557-2870.

MAA’s Advocacy in August Campaign 

With the traditional August congressional recess looming, MAA’s Advocacy in August campaign has kicked off. The annual grassroots initiative mobilizes real estate finance professionals to engage directly with lawmakers while they are back home in their states and districts.

• Engagement through meetings scheduled through Advocacy in August can be a critical political engagement tool that helps to engage and advance MBA’s public policy and legislative agenda.

Why it matters: During the congressional recess, running from July 25 through September 13, MAA members have a prime opportunity to meet with their elected officials while they are home in their states and districts. Engagement can continue beyond August and into the weeks leading up to Election Day, as lawmakers spend additional time back home during the fall campaign period.

What’s next: MBA’s Legislative & Political Affairs team is coordinating meetings with elected officials and senior staff and hosting pre‑meetings to review meeting structure, key issues, and questions. Sign up to participate, and we will contact you to help schedule a targeted meeting.

• As Advocacy in August transitions into the fall, members can stay engaged by participating in MBA Advocacy Week (September 14–18), running a MAA or MORPAC campaign within their organization, and registering for the next MAA Quarterly Pre‑Election Webinar to stay informed heading into November.

For more information, please contact Jamey Lynch, AMP at (202) 557-2818 or Mike Fiegoli 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:

• Expanding Investor Opportunities Through Cash Flow Lending – Aug. 4
• Driving Performance in Non-Agency Servicing – Aug. 5
• Vetting Closing Agents and Real Estate Attorneys to Mitigate Risk – Aug. 6
• UAD 3.6 Office Hours Part III – Aug. 10
• Introduction to Mandatory Loan Sale Delivery – Aug. 18
• AI Governance, Quality & Risk: A Practical Framework for Mortgage Lenders – Aug. 18
• Using Quality Assurance, Control and Fraud Prevention to Strengthen Loan Operations – August 25

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.