Advocacy Update: Senate Committee Holds Nomination Hearing for CFPB Director Nominee Johnson

Senate Banking Committee Holds Nomination Hearing for CFPB Director Nominee Brian Johnson

On Thursday, the Senate Banking Committee held a nomination hearing for Brian Johnson to become Director of the Consumer Financial Protection Bureau (CFPB). Johnson, a senior executive at Capital One, previously served as CFPB Deputy Director during President Trump’s first term.

• Johnson also brings experience from across the government and the private sector, including his service as a congressional staffer and advisor to financial institutions on consumer finance regulatory matters in private practice.
• MBA President and CEO Bob Broeksmit, CMB, submitted a letter ahead of the hearing in support of the Johnson nomination.

Go deeper: A significant portion of the hearing focused on the CFPB’s ability to regulate firms within the agency’s jurisdiction amidst current staffing shortages. A detailed summary of the hearing can be found here.

Why it matters: Johnson’s nomination signals the Trump administration’s continued focus on regulatory reform and reducing compliance burdens across the financial services sector, including mortgage lending. If confirmed, he would oversee the Bureau’s rulemaking, supervision, and enforcement activities, including those related to the President’s wide-ranging March 13 Executive Order (EO) “Promoting Access to Mortgage Credit.”

• Read MBA’s recent joint letter to the Bureau on targeted regulatory reforms to implement the EO.

What’s next: Johnson’s nomination is expected to be advanced along party lines from the Senate Banking Committee before the August recess, with a full Senate confirmation vote anticipated in September. MBA will continue to monitor the nomination process and engage proactively with the CFPB on issues critical to the real estate finance industry.

For more information, please contact George Rogers at 202-557-2797 or Jeremy Green at 202-557-2849.

Key House Subcommittee Holds Hearing on FHLB System

Last week, the House Financial Services Committee’s Subcommittee on Housing and Insurance held an exploratory hearing on the Federal Home Loan Bank (FHLB) System, often referred to as the nation’s third housing-related government-sponsored enterprise (GSE).

• Witnesses included Ryan Donovan, President and CEO of the Council of Federal Home Loan Banks; an executive from a member institution of the Federal Home Loan Bank of Topeka; a representative from the Government Accountability Office (GAO); and a Columbia University law professor.

Why it matters: The hearing, intended in part to educate lawmakers about the FHLB System, also examined its dual mission of providing liquidity to member institutions while supporting housing and community development, particularly in the wake of the 2023 regional banking crisis. A summary can be found here.

Go deeper: Witness testimony, along with responses to questions from subcommittee members, fueled a broader discussion about potential reforms to the FHLB System, including membership eligibility. Rep. Nykema Williams (D-GA) noted that 42% of its members make no home loans while major nonbank mortgage lenders are excluded from membership. The hearing also highlighted several legislative discussion drafts officially noticed for consideration, including a proposal to increase the FHLBanks’ required contributions to their Affordable Housing Programs from 10% to 15% of net income.

What’s next: While none of the discussion drafts noticed for the hearing are expected to advance through the full House Financial Services Committee in the near term, MBA will continue to evaluate the proposals and advocate on behalf of its members as the legislative process unfolds.

For more information, please contact Rachel Kelley at (202) 557-2816 and/or Madisyn Rhone at (202) 557-2741.

FHA Seeks Feedback on Draft RAP Mortgagee Letter

On Monday, the Federal Housing Administration (FHA) posted a draft Mortgagee Letter to its Drafting Table outlining the proposed five-year Reinstatement Advance Payment (RAP) Demonstration for stakeholder feedback. The demonstration would allow mortgagees to use a RAP Repayment Agreement, secured by the FHA-insured first mortgage, as an alternative to securing a partial claim.

Why it matters: MBA has advocated for and strongly supports the development of this program as an alternative to the operationally challenging second lien partial claim. The RAP Demonstration will provide mortgagees with greater flexibility in how they administer partial claims for FHA. Mortgagees that choose the alternative method may avoid the repercussions of the 2023 Show Me State Premium Homes v. McDonnell decision, which requires FHA mortgages with partial claims to be foreclosed judicially.

• The alternative method is also likely to reduce the likelihood that the Commissioner’s Adjusted Fair Market Value (CAFMV) exceeds total debt for foreclosure-bidding purposes.

What’s next: MBA will collect and submit feedback from members by the September 3, 2026, deadline.

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

MBA, Massachusetts MBA Issue MAA Call to Action Opposing Tenant Opportunity to Purchase Language

Recently, the Mortgage Action Alliance (MAA), in coordination with the Massachusetts Mortgage Bankers Association, launched a Call to Action opposing the Tenant Opportunity to Purchase Act (TOPA) language in the Massachusetts Legislature’s Economic Development Bill.

Go deeper: The Massachusetts Senate is currently considering the Economic Development Bill (S.3178), associated with the state’s budget process. The version passed by the Massachusetts House (H.6652) included TOPA language that would give cities and towns in the Commonwealth the right to restrict the sale of rental housing and fundamentally change the residential real estate transaction process in Massachusetts. TOPA disrupts the normal conveyance process by introducing significant delays and impediments, some of which could add months of gridlock, ultimately worsening the housing crisis. If enacted, the proposal would: 

• Reduce available rental stock, multifamily housing production, the property tax base, and the quality and quantity of affordable housing investment;
• Delay real estate sales by as much as 9 months and the return of foreclosed properties to useful operation in the open market;
• Increase the cost of financing in an already expensive and complicated market for first-time home buyers; and,
• Further harm distressed property owners, including imposing harsh penalties.

What’s next: The Senate and House must reach concurrence on an Economic Development Bill by the end of Massachusetts’ formal session on July 31. Massachusetts residents, take action and contact your representatives today!

For more information, please contact Liz Facemire, CMB, at (202) 557-2816 or Jamey Lynch at (202) 557-2818.

MBA Announces CONVERGENCE Baltimore

On Wednesday, MBA, in partnership with the CONVERGENCE Collaborative, announced the launch of CONVERGENCE Baltimore, a new place-based initiative designed to increase sustainable homeownership opportunities by bringing together local and national stakeholders to address barriers to housing access throughout the Baltimore region.

• Neighborhood Housing Services of Baltimore (NHS Baltimore) will serve as the lead organization, with M&T Bank joining as the initiative’s cornerstone member.

What they are saying, “Homeownership remains one of the most effective pathways to building long-term financial security, but expanding access requires collaboration across the housing ecosystem,” said Wendy Penn, MBA’s Vice President of Affordable Housing Initiatives. ”CONVERGENCE Baltimore will bring together organizations committed to turning ideas into action and creating practical solutions that help more individuals and families achieve sustainable homeownership. We’re proud to partner with Neighborhood Housing Services of Baltimore and the many stakeholders working to expand opportunity and strengthen communities across the region.”

Why it matters: Baltimore becomes the fourth CONVERGENCE site, joining Philadelphia, Columbus, and Memphis. The initiative brings together lenders, nonprofit organizations, government agencies, and community leaders to develop local, market-driven solutions that address barriers to homeownership and expand access to affordable housing.

For more information, please contact Wendy Penn at (202) 557-2782.

MBA, Housing Coalition Hosts Bipartisan Celebration of the 21st Century ROAD to Housing Act

Last week, MBA joined several coalition partner housing trade groups to co-host a bipartisan celebration recognizing the enactment of the 21st Century ROAD to Housing Act.

• Wednesday’s gathering featured remarks from House Financial Services Committee (HFSC) Chairman French Hill (R‑AR), HFSC Ranking Member Maxine Waters (D-CA), HFSC Housing & Insurance (H/I) Subcommittee Chair Mike Flood (R‑NE), H/I Subcommittee Ranking Member Emanuel Cleaver (D‑MO), and additional lawmakers who championed this bipartisan effort – underscoring the broad coalition of support behind this landmark legislation.

Why it matters: The enactment of this comprehensive housing package represents a significant bipartisan, bicameral effort to advance policies aimed at expanding housing opportunities and addressing housing challenges nationwide. This week’s events highlighted the power of collaboration between policymakers and industry stakeholders in advancing meaningful, practical housing solutions.

What’s next: With the legislation now enacted, MBA will continue working closely with congressional champions and the Trump administration to support effective implementation.

For more information, please contact Erin Reilly at (202) 557-2751 and Jamey Lynch, AMP at (202) 557-2818.

REGISTER: July 28 Town Hall with MBA Leadership

On Tuesday, July 28, at 3:00 p.m. ET, MBA’s SVP of Legislative and Political Affairs Bill Killmer and other MBA leaders engaged on policy issues will host another virtual MBA Town Hall on the latest developments in residential real estate finance under the Trump administration and 119th Congress.

• Register here. Attendees can send questions beforehand to townhall@mba.org.

Why it matters: MBA continues to monitor ongoing developments at the federal agencies and is engaging with the Trump administration and Congress to promote activities and priorities that advance investment and growth in real estate markets.

For more information, please contact Bill Killmer at (202) 557-2736 or Pete Mills at (202) 557-2878.

MBA’s MAA Prepares for Advocacy in August 

With the traditional August congressional recess looming, MAA’s Advocacy in August campaign is set to kick 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:

• The Black Line of Revenue: Building a Pipeline That Holds When the Market Shifts – July 27
• How Lenders Can Create More Homes – and Build Their Business – July 28
• 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

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.