Advocacy Update: SBC Affordability Hearing; FHA Policy Changes; more

Senate Banking Committee Hearing on “The Affordability Agenda”

On Tuesday, the Senate Banking Committee held a hearing focusing on the theme of affordability for American families. The hearing covered a broad range of subjects, including housing costs, consumer credit, and financial strains on households. Republicans on the committee supported deregulatory approaches, supply-side economic growth solutions, and tax cuts – while arguing against government spending increases and heavy-handed regulation by the prior Biden administration. Committee Democrats concentrated on asking questions about the impact of President Trump’s policies on affordability, including tariffs, healthcare cuts, and the impact of the Iran conflict on gas, energy, and commodity prices.

• A summary of the hearing can be found here.

Why it matters: The hearing highlighted the partisan divide on how to address broader affordability issues in the United States while showcasing bipartisan agreement on housing affordability and supply. Democrats and Republicans alike praised the positive outcomes for housing that would flow from enactment of the 21^st Century ROAD to Housing Act (“ROAD”).

Go deeper: Senator Jim Banks (R-IN) focused on legislative solutions to housing and transaction costs, highlighting his legislation, the Reside Act, which allows for the conversion of commercial buildings into housing. He also questioned the witnesses about the regulatory burdens driving up mortgage costs. Senator Catherine Cortez Masto (D-NV) posited that the bipartisan “ROAD” Act must now be funded by Congress, specifically highlighting the HOME program’s role in increasing affordable housing supply.

What’s next: The hearing demonstrates the political potency of the issue of affordability. MBA will continue to engage closely with lawmakers and the administration on any remaining affordability issues important to the real estate finance industry.

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

FHA Announces Broad Single Family Policy Modernization

On Tuesday, FHA released a series of Mortgagee Letters (MLs) aimed at reducing regulatory burden and improving operational efficiency across its Single Family program. Several of the updates align with recommendations MBA has consistently advanced through its engagement with FHA.

Go deeper: Collectively, the changes touch nearly every stage of the loan lifecycle, from origination and quality control to servicing and rehabilitation lending. Together, these updates represent one of FHA’s broadest recent efforts to streamline its Single Family program. The most significant changes include: 

• Streamlining Appraisal Field Review Requirements – Eliminates unnecessary appraisal field review requirements, reducing lender quality control costs while aligning FHA with industry practices.
• Limited 203(k) Rehabilitation Program – Expands the number of allowable contractor draw requests under the Limited 203(k) program to provide greater flexibility during home rehabilitation projects.
• Mortgagee Approval & Quality Control – Modernizes FHA’s quality control requirements by permanently exempting early payment defaults caused by natural disasters from mandatory QC review samples.
• Form 92900-B (Important Notice to Homebuyers) – Removes the requirement for lenders to provide the duplicative FHA Important Notice to Homebuyers (Form 92900-B) at closing.
• Trial Payment Plans / Loss Mitigation – Clarifies FHA’s trial payment plan requirements to strengthen program integrity while ensuring borrowers who proactively seek assistance are treated fairly.

Why it matters: MBA has consistently advanced through its advocacy with FHA to simplify program requirements, remove unnecessary operational burdens, and better align FHA policies with industry practices.

What’s Next: MBA will continue to engage with FHA, where additional clarification or implementation guidance may be needed through the Loan Administration Committee and Government Loan Production Subcommittee

For more information, please contact Kaitlin Hildner at (202) 557-2933 or Darnell Peterson at (202) 557-2922.

FHA Provides Update on UAD 3.6 Implementation

On Thursday, FHA announced the next phase of its transition to the modernized Uniform Appraisal Dataset (UAD) 3.6, providing additional implementation guidance and reaffirming its commitment to aligning with the GSEs’ modernization efforts.

Go deeper: While FHA has not yet announced its optional or mandatory implementation dates, the agency confirmed that its technology development is nearing completion, beta testing with a limited number of mortgagees is underway, and it is seeking additional participants. Lenders interested in participating in the beta test should contact the FHA Resource Center at answers@hud.gov or call 800-225-5342.

• FHA also launched a new UAD 3.6 Implementation Preparedness Toolbox on its Electronic Appraisal Delivery (EAD) Portal, which includes technical specifications, implementation resources, and transition guidance for lenders, appraisers, and technology vendors. FHA indicated that its optional transition period will begin before the GSEs’ mandatory implementation date, with a mandatory FHA adoption date to be announced at a later time.

Going Broader:  Given the challenges of implementing UAD 3.6, MBA Education has scheduled a series of “Office Hours” webinars to help members learn from those who have already started, and to ask questions of the GSEs:

• UAD 3.6 Office Hours Part I — June 29 | Register
• UAD 3.6 Office Hours Part II — July 20 | Register
• UAD 3.6 Office Hours Part III — August 10 | Register

Why it matters: Although FHA has not established a mandatory implementation deadline, lenders, appraisal management companies, and technology providers should begin preparing now. Early engagement will help ensure systems, workflows, and vendor integrations are ready ahead of FHA’s optional transition period and the broader industry move to UAD 3.6.

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

CFPB Announces Major Overhaul of Consumer Complaint System

On Wednesday, the CFPB issued a press release announcing significant revisions to its Consumer Complaint System. The CFPB states it is correcting flaws to restore integrity and utility to the Consumer Complaint System by implementing a series of changes particularly focused on credit reporting complaints.

• The CFPB notes that the complaint system has become distorted by an explosion of complaints generated by credit repair organizations, social media influencers, and AI-assisted dispute tools, making the data less reliable and increasing burdens on both the Bureau and companies. Notably, the CFPB states that credit reporting complaints increased from approximately 150,000 in 2019 to more than 5 million in 2025, a growth of over 3,700%.

Go deeper: Some of the changes announced include:

• Standardizing the responses to complaints by issuing a revised Company Portal Manual.
• Enhancing identity verification by implementing two-factor authentication, requiring verification of both email addresses and mobile phone numbers, adding disclosures for third-party representatives submitting complaints.
• Reinforcing FCRA dispute procedures by emphasizing that consumers should first dispute credit report inaccuracies directly with consumer reporting agencies before filing a CFPB complaint.
• Working with companies to clarify when complaints should receive administrative responses rather than substantive investigations, particularly where the complaint was submitted by an unauthorized third party, or the complaint appears abusive or duplicative.  

Why it matters: This is a notable win. Many of the changes mentioned above were also raised in MBA’s response earlier this year to the Bureau’s request for information on the Consumer Response Intake Form. In the letter MBA offered that the complaint database would be most effective if it functioned as a secondary escalation mechanism, available after a consumer has attempted to resolve the issue directly with the company. MBA suggested several ways that the CFPB can improve the Complaint Database to best facilitate dispute resolutions between the company and consumer, including:

• Encouraging prior interaction with the company before a consumer submits a complaint;
• Verifying the identity of the consumer or third party submitting the complaint to reduce the number of false and incorrect complaints;
• Allowing longer extensions to respond to complex issues;
• Limiting the ability of consumers to file multiple complaints over the same issue;
• Excluding matters that are “resolved with an explanation” from counting as a “complaint;” and
• Automating how the information from the consumer is processed and how it is given from the CFPB to the company.

What’s next: MBA will continue to engage with the Bureau and inform members of updates.

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

MBA Submits Coalition Letter to FCC on Enhancing Know-Your-Customer Requirements

On Thursday, MBA and other trades sent a joint letter in response to the Federal Communications Commission’s (FCC) proposal to strengthen Know Your Customer (KYC) requirements for originating voice service providers as part of its ongoing effort to combat illegal robocalls, spoofing, and fraud. The letter argues that telecommunications providers should be subject to more rigorous customer due diligence obligations, similar to those imposed on financial institutions under AML/KYC frameworks.

In the letter, MBA urges the FCC to take some of the following actions:

• Require originating providers to collect specific information from business callers before allowing the caller to originate calls on the provider’s network;
• Codify a base forfeiture amount for violations of the Commission’s rules requiring providers to take “effective measures” to prevent the origination of illegal calls;
• Allocate additional resources to enforce its enhanced “Know Your Customer” regime for originating providers; and
• Ban SIM boxes that allow scammers to spoof numbers of legitimate businesses.

Why it matters: MBA has previously weighed in on these issues and the letter is consistent with MBA’s longstanding advocacy on robocalls, spoofing, and fraud prevention.

What’s next: MBA will continue to monitor this proposal and provide any relevant updates. 

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

Two MBA Icons Among NHC’s 2026 Housing Visionaries

The National Housing Conference’s Annual Housing Visionary Awards Gala — held Wednesday at The Anthem in Washington, D.C. — honored leaders who have shaped the future of housing finance and affordable homeownership. Two of this year’s honorees are former MBA Chairs with deep roots in our industry.

Why it matters:  The NHC brought together housing professionals from across the country to celebrate this year’s honorees: Bill Emerson, Board Member of Rocket Companies, and Debra W. Still, retired CEO and Vice Chair of Pulte Financial Services.

• Bill Emerson served as MBA’s 2016 Chairman and built one of the most recognized brands in retail mortgage lending. He previously served as President of Rocket Companies and as Interim CEO from June to September 2023.
• Debra W. Still, CMB, served as MBA’s 2013 Chair and remains a member of the association’s Board of Directors. She received MBA’s Andrew D. Woodward Distinguished Service Award in 2014. She is also Co-Chair of NHC’s National Advisory Council and has chaired MBA’s Opens Doors Foundation for more than a decade.

Go deeper: The gala also recognized Congressman Mike Flood (R-NE) and Congressman Emanuel Cleaver II (D-MO) with the Carl A.S. Coan Sr. Award, honoring their bipartisan leadership on a housing package that included reforms to modernize federal housing programs, reduce barriers to development, and support production and preservation of both rental housing and single-family homes.

The bottom line: Two of MBA’s own were recognized on one of the industry’s most prominent stages — a testament to the leadership the association has contributed to the broader housing community for decades.

MBA White Paper Examines Emerging Shifts in Housing Demand

On Monday, MBA’s Research and Economics team released a new white paper examining how changing demographic and market conditions could reshape housing demand in the years ahead. 

Implications of a Persistent Slowing in Housing Demand explores trends in household formation, population growth, housing supply, and affordability, and assesses their implications for home prices, housing construction, and mortgage market activity. The report finds that while housing affordability challenges remain significant, housing markets have begun to rebalance in many areas as demand cools and newly constructed housing enters the market.

Why it matters: For more than a decade, housing demand has outpaced supply, contributing to rising home prices and rents. However, slowing population growth, lower fertility rates, reduced immigration, and an aging population are expected to slow household formation over the next decade. These trends could alter housing supply-demand balances and have important implications for housing and mortgage markets.

What they are saying: Over the past several years, growth in housing demand has slowed as new housing supply has entered the market in many regions,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “While affordability challenges remain significant, MBA’s research highlights the importance of looking beyond today’s market conditions to understand the long-term forces shaping housing demand. These findings can help industry participants and policymakers better prepare for future changes in housing and mortgage market dynamics.”

To read the paper, click here.

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

California CRA Bill Update: Bill Recast into Fair Housing Legislation

California’s AB 801 has been substantially amended from a Community Reinvestment Act (CRA) proposal for independent mortgage banks, credit unions, and state-chartered banks into a bill focused on establishing a regular cycle for already-authorized fair lending exams. The revised bill would require examinations at least once every four years, while also allowing the regulator – the Department of Financial Protection and Innovation – to accept comparable state or federal exams instead of conducting redundant reviews.

• The California MBA and MBA are seeking additional improvements to the bill to better protect the confidentiality and privilege of member company information, and align the fair lending exams with the Department’s existing compliance exams to lower the cost burden for both members and the Department.

Go deeper: Last year, after the CRA bill cleared the Assembly, the sponsor agreed to pause further consideration to allow time for additional discussions around the CRA framework. Those conversations, shaped in part by advocacy from the California MBA and industry partners including MBA, ultimately led to amendments that moved the bill away from a new CRA-style regime and toward the regulator’s existing role in reviewing compliance with civil rights laws. Last week, the amended bill was approved by the Senate Banking and Financial Institutions Committee.

What next: The bill must be approved by the full Senate and then re-passed by the Assembly. MBA and the California MBA will remain engaged in seeking improvements as well as to block any effort to reintroduce CRA in the Legislature in future legislative sessions.

For more information, please visit the MBA State CRA resource page, or contact William Kooper (202) 557-2737 or Liz Facemire CMB, at (202) 557- 2870.

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:

• UAD 3.6 Office Hours Part I – June 29
• Rethinking Income Strategies for Self-Employed Borrowers – July 8
• Analyzing the 2025 Mortgage Market: A Deep Dive into New HMDA Data – July 22
• 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 – August 4

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.