State Relations Committee Update: Policy Highlights

CFPB Releases RFI on Access to Mortgage Credit: Last Thursday, the Consumer Financial Protection Bureau (CFPB or Bureau) released an RFI in response to President Trump’s Executive Order (EO) “Promoting Access to Mortgage Credit.” President Trump’s EO directed the CFPB, the federal banking agencies, and the National Credit Union Administration (NCUA) to pursue regulatory reforms through rulemaking and supervisory guidance aimed at reducing costs and expanding access to mortgage credit. Specifically, the CFPB was instructed to propose changes across several key stages of the mortgage origination process, including updates to major rules under its jurisdiction. MBA’s summary of the RFI can be found here. The RFI contains 22 questions and seeks comments about potential regulatory changes pertaining to the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) integrated disclosure requirements (TRID), TILA rescission rights, and reverse mortgages. It also asks how the current regulations impact smaller lending institutions. On TRID timing and the Right to Rescission, the Bureau, in addition to general questions, asks several questions related to the effects of the timing requirements on consumers’ access to mortgage credit and the cost to creditors, including whether to change the timing requirement. The Bureau asks whether it should consider changes to the TRID Rule tailored for small banks and credit unions and whether those changes would lower costs for lenders and consumers. Specifically, the Bureau questions whether it should create exemptions or alternative requirements for these institutions. The Bureau also asks whether to tailor the disclosure requirements in TILA and RESPA to reverse mortgages and if doing so would provide a benefit to consumers, as compared to generic brochures and booklets. Additionally, the Bureau poses whether it should make changes to the Total Annual Loan Cost (TALC) to provide consumers with a more accurate cost estimate of the reverse mortgage. MBA plans to respond to the Bureau and will convene a call with the Legal Issues and Regulatory Compliance Committee to discuss its response by the August 10, 2026, deadline. MBA members interested in sharing their views can participate.

HUD Proposes to Rescind Flood Requirements: Last Thursday, the Department of Housing and Urban Development (HUD) published a proposed rule to rescind the Federal Flood Risk Management Standards (FFRMS) for FHA-insured properties. The current rules went into effect in 2025 and have required use of a Climate-informed Science Approach (CISA) for determining location in a floodplain. However, CISA maps are not available in most of the country, making compliance with the rule very challenging and costly. The rule limited construction and substantial rehabilitation in many communities and added significant costs to projects in those areas. HUD’s new proposal retains some of the positive changes to floodways on FHA-insured properties. Comments on the proposal are due by September 8, 2026. MBA will work with members to ensure a robust response supporting the rescissions.

Trump Administration Publishes Spring 2026 Regulatory Agenda: Last week, the Trump administration published its Spring 2026 Unified Agenda of Regulatory and Deregulatory Actions, outlining the regulatory actions that federal administrative agencies plan to issue over the next six months. The rules and proposals published by federal agencies can have significant impacts on lenders and borrowers. The full lists are now available for the Consumer Financial Protection Bureau (CFPB), Federal Housing Finance Agency (FHFA), the federal banking agencies (FDIC, OCC, and Federal Reserve), the Department of Housing and Urban Development (HUD), the Federal Communications Commission (FCC) and the Federal Trade Commission (FTC). Notable and/or new activities MBA spotted in the Spring 2026 agenda for the CFPB include: Ability to Repay/Qualified Mortgages – pre-rule stage; Two separate Regulation X rulemakings that the Bureau plans to complete. It also noted plans for a proposed rule on Section 1033 (open banking). Additionally, the CFPB has a pre-rule proposal related to Qualified Mortgages and the Ability to Repay rule and, relatedly, a proposed rule on contingencies for calculating Average Prime Offer Rate. Importantly and in response to MBA advocacy, the CFPB has included changes to the Loan Originator Compensation Rule in its long-term agenda. For HUD: Proposed revisions to its FHA property flipping rule to eliminate the current 90-day resale restriction and modernize requirements for resales occurring between 90 and 180 days. The proposal reflects long-standing MBA advocacy to modernize the property flipping rule, improve alignment with broader market practices, and remove unnecessary barriers that can delay home sales and limit affordable homeownership opportunities. For VA: Proposed updates to its minimum property requirements (MPRs) to reduce regulatory burdens, modernize appraisal requirements, and improve the competitiveness of VA-financed home purchases while maintaining protections for Veterans and taxpayers. The proposal reflects several recommendations MBA has advanced through its advocacy, and MBA will continue engaging with VA to support further modernization of the program. MBA will work with members to monitor and respond to proposals put forth by the government agencies that impact residential, multifamily, and commercial lending activities.

MBA, Coalition Partners Renew Call for Single-Family Housing Tax Credit: Earlier last week, MBA and a broad group of housing stakeholders urged policymakers to advance a tax/reconciliation package focused on affordability, highlighting the opportunity for Congress and the Trump administration to boost investment in starter homes by pushing for inclusion of the single-family Neighborhood Homes Investment Act (“NHIA,” H.R. 2854/S. 1686) within such a package. Under the NHIA proposal, federal tax credits would help close the gap between the cost of constructing/rehabilitating a home and its market value. These credits would be allocated by formula to state HFAs and distributed to project sponsors—such as developers, local governments, or financial institutions – who would have five years to complete homes which must be sold at prices generally capped at four times the area’s median family income. The credit targets “disinvested” urban neighborhoods, rural areas, and communities hit by natural disasters or economic decline. Low- and middle-income families earning up to 140% of area median income (AMI) can purchase homes built with the tax credits, while those earning up to 100% of AMI can access resources to rehabilitate their homes. Recognizing today’s fiscal environment, NHIA leading sponsors Reps. Mike Kelly (R-PA) and John Larson (D-CT) and Senators Todd Young (R-IN) and Mark Warner (D-VA) have prepared a narrower, four-year version of the NHIA for consideration as a part of any emerging reconciliation framework. House and Senate leaders are working to gauge the feasibility of attempting to craft and move a so-called “Reconciliation 3.0” package prior to the end of the current congressional session. MBA and its coalition partners will continue to advocate for the inclusion of the NHIA proposal in any such package (should it become politically viable).

GSEs Release Historical Credit Score Data for VantageScore 4.0, FICO 10T Adoption: On Wednesday, July 1, Fannie Mae and Freddie Mac (the GSEs) each published the long-awaited FICO 10T historical credit score data for loans acquired between April 2013 and September 2025, as well as additional data for VantageScore 4.0 between April 2023 and September 2025. The data release, for which MBA has long advocated, will help lenders, investors, and technology providers prepare for a successful transition to a fully modernized credit scoring framework using VantageScore 4.0 and/or FICO 10T. MBA President and CEO Bob Broeksmit, CMB, in a press statement said, “We encourage continued collaboration to complete the remaining reviews needed to make both VantageScore 4.0 and FICO 10T broadly available. Doing so will give lenders greater flexibility while providing borrowers with the benefits of using either of the two validated, more predictive credit scoring models, which should score more consumers accurately and expand sustainable access to homeownership. MBA will continue working with FHFA, the GSEs, and industry stakeholders to support a smooth implementation of modernized scores and advocate for additional reforms to the costly tri-merge credit reporting requirement. To increase competition and lower costs for consumers, MBA continues to urge the GSEs to adopt a single report option for GSE borrowers with strong credit profiles.” MBA has consistently advocated for increased competition in credit reporting and scoring and welcomes reforms that will lower costs for consumers. Allowing lenders to choose either VantageScore 4.0 and FICO 10T should help accomplish the goals of added competition in the credit score space, increased credit availability, and reduced consumer costs. In April, FHFA announced revisions to Fannie Mae and Freddie Mac selling policies to allow for the current use of VantageScore 4.0 and the future use of FICO 10T. The GSEs have since begun accepting mortgages assessed using VantageScore 4.0 through a limited rollout to approved lenders. HUD Secretary Scott Turner joined the April announcement, stating that the Federal Housing Administration (FHA) “in the next few months” will permit the use of VantageScore 4.0 and FICO 10T as eligible credit scoring models for FHA-insured mortgage underwriting. MBA will continue to work with FHFA, the GSEs, and HUD to get VantageScore 4.0 (and FICO 10T) available as soon as possible to all lenders to ensure that the benefits of competition and modern scores are available to all lenders and their customers. MBA will also continue to press for reforms of the tri-merge credit reporting requirement to encourage greater competition and lower costs for consumers.

House Passes 7-Year TRIA Reauthorization Bill: On Monday, June 29, the U.S. House passed an amended version of H.R. 7128, the TRIA Program Reauthorization Act of 2026, with strong bipartisan support. Ahead of the vote, MBA urged House lawmakers to support the package in a letter to House leadership from MBA Chief Lobbyist Bill Killmer and in a separate coalition letter. The bill, as most recently amended, extends TRIA for seven years, raises the program’s certification “trigger” loss threshold from $5 to $10 million (beginning in 2029), and adds an enhanced event timeline for Treasury Department certification of domestic acts of terrorism. The House bill approved earlier this week was led by House Financial Services Housing and Insurance Subcommittee Chair Mike Flood (R-NE) and Ranking Member Emanuel Cleaver (D-MO) as well as House Homeland Security Committee Chair Andrew Garbarino (R-NY). Earlier this year, the House Financial Services Committee overwhelmingly advanced a previous version of H.R. 7128 by a bipartisan 51–2 vote. In late April, Senators Dave McCormick (R-PA), Tina Smith (D-MN), Thom Tillis (R-NC), and Ruben Gallego (D-AZ) introduced similar (but not identical) legislation that also extends the TRIA program for seven years. In a press statement, MBA President and CEO Bob Broeksmit, CMB, said, “TRIA has long served as a successful public-private partnership that protects taxpayers, supports economic growth, and ensures businesses of all sizes can obtain the terrorism risk insurance coverage needed to finance, develop, buy, and operate commercial properties across the country. With more than $5 trillion in commercial and multifamily mortgage debt outstanding, any lapse in the program would create unnecessary uncertainty, disrupt financing markets, and increase costs for property owners, businesses, and communities nationwide.” Reauthorizing TRIA is crucial to continuing the availability of terrorism risk coverage for commercial properties. Without a long-term reauthorization of TRIA, terrorism risk insurance could become unavailable or prohibitively expensive, making commercial properties harder and more costly to finance, buy, and sell. MBA is engaged with senators to advance the Senate's TRIA legislation and encourages leaders in both chambers to quickly reconcile the remaining differences and send a final bill to President Trump as soon as possible – and well before the program's December 31, 2027, expiration.

FHFA Proposes New Duty to Serve Rule: At the end of June, FHFA released a proposed new Duty to Serve Underserved Markets rule that would repeal and replace the existing framework. The proposal is intended to give the GSEs greater flexibility to serve very low-, low-, and moderate-income families in the manufactured housing, affordable housing preservation, and rural housing markets by encouraging innovation and reducing administrative burden. The proposal would eliminate the current list of "prescribed activities" and instead allow each GSE to undertake any "eligible action" that advances its statutory Duty to Serve responsibilities, unless FHFA has determined the action to be ineligible through regulation or review. The proposal also would revise how median income is calculated, remove unnecessary conditions on eligible loan purchases, and streamline plan content requirements, as well as the evaluation and ratings process. The proposal places a strong emphasis on chattel lending, recognizing it as the primary financing method for manufactured housing while noting the market remains underdeveloped due to limited liquidity, the lack of a securitization infrastructure, and insufficient performance data. MBA is reviewing the proposal and will be soliciting member feedback in the coming weeks. Comments are due by July 24, 2026.

MBA, Trades Respond to FHA’s MPR RFI: At the end of June, MBA and a coalition of housing trade associations submitted a joint comment letter in response to FHA’s Request for Information (RFI) on Single Family Minimum Property Requirements (MPRs). The letter urges FHA to modernize its property standards by aligning them with the collateral evaluation framework used by Fannie Mae and Freddie Mac (the GSEs), replacing prescriptive repair requirements with a more flexible, risk-based approach that focuses on a property's overall condition and marketability. The recommendations also encourage FHA to leverage the upcoming implementation of UAD 3.6, consolidate fragmented guidance into a single handbook section, and use the FHA Drafting Table to solicit stakeholder feedback before implementing policy changes. Within the group’s recommendations, the coalition also provided prescriptive amendments that FHA should consider to align with the GSEs and the VA Loan Guarantee Program. FHA's current MPRs often require repairs for minor or cosmetic property conditions that can delay closings, increase costs, and make FHA-financed purchase contracts less competitive than conventional financing. Aligning FHA's standards with the GSEs would maintain strong borrower protections while reducing unnecessary operational burdens and improving consistency for appraisers and lenders. MBA will continue to engage with FHA on this issue through its MBA Residential Loan Production Committee.

SCOTUS Issues Decisions Reshaping Independent Agency Executive Removals: On Monday, June 29, the U.S. Supreme Court issued two opinions relating to a President’s power to remove executive officials. In Trump v. Slaughter, the Court in a 6-3 decision struck down a federal law that bars the president from firing members of the Federal Trade Commission (FTC) except in cases of “inefficiency, neglect of duty, or malfeasance in office.” On the same day in Trump v. Cook, the Court in a 5-4 decision held that Federal Reserve Governor Lisa Cook can remain in her job while challenging efforts to fire her. The Slaughter decision overturned the precedent of Humphrey’s Executor v. United States, 295 U.S. 602 (1935), and held that members of the FTC may be removed by the President at will, despite statutory “for cause” removal protections. However, the Court found that this holding does not extend to the Federal Reserve because of the United States’ long tradition of independent central banking. The Court distinguished these holdings by observing that agencies which exercise executive powers must be controlled by the President. The Court noted that the FTC exercises regulatory, investigative, and enforcement authority and thus exercises these executive powers. The Federal Reserve, conversely, exercises “functions traditionally handled outside the Executive Branch” and “follows in the distinct historical tradition of the First and Second Banks of the United States – both of which influenced monetary policy and neither of which were subject to plenary Presidential control.” It is clear that a majority of the Court is unwilling to subject the Federal Reserve to the same degree of Presidential control imposed on other regulatory agencies. However, the holding of Slaughter raises questions regarding the viability of for-cause removal protections for officials who exercise similar executive authority. This could impact the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Securities and Exchange Commission, the Commodity Futures Trading Commission, and other multimember commissions. MBA will keep members informed about the impact of these decisions.

Federal Agencies Issue FDTA Final Rule: At the end of June, the financial regulatory agencies (collectively the Agencies) finalized the Financial Data Transparency Act (FDTA) Joint Data Standards rulemaking that establishes technical standards for data submitted to the Agencies to promote interoperability of financial regulatory information.MBA previously submitted comments in response to the joint proposed rule. While MBA supported the adoption of consensus-based industry standards that are widely used by regulated entities, the proposed rule raised several concerns and questions about the methodology used by the agencies to designate various identifiers and terms as industry standards. MBA supported adopting the Legal Entity Identifier (LEI) as the standard because it is already widely used across the mortgage industry. At the same time, MBA urged the agencies not to adopt the Financial Instrument Global Identifier (FIGI), citing concerns that it would not meet the needs of the financial services industry and would impose unnecessary costs on regulated entities. Importantly, the final rule adopts the LEI and declines to adopt the FIGI, consistent with MBA's advocacy. MBA will monitor the implementation of this rule and communicate any updates to members.

House Financial Services Committee Holds Markup with Bills of Interest to MBA Members: On Tuesday, June 30, the House Financial Services Committee (HFSC) held a markup considering 11 measures, advancing 10 bills and one resolution. The agenda covered a wide range of financial services policy areas, including consumer credit reporting, investor privacy, earned wage access, and Securities Exchange Commission (SEC) reform. Three bills—H.R. 1640 (HEIRS Act), H.R. 7187 (Clarity for Compensation Act), and H.R. 9331 (STOP Payments Fraud Act)—advanced with strong bipartisan support, each passing unanimously by a 51–0 vote. The remaining measures were approved largely along party-line votes. MBA sent a letter to all HFSC members prior to the markup, expressing support for the three following bills: The HEIRS Act (H.R. 1640) would establish a HUD grant program for states to assist residents with heirs' property title-clearing and estate documentation, expanding housing counseling for families with tangled title issues, strengthening home retention opportunities for heirs, and facilitating clear title for financing these properties. During the markup, Rep. Emanuel Cleaver (D-MO) highlighted MBA's support for the bill, noting that the association has made clear the legislation reduces barriers for lenders, supports responsible credit expansion, and helps unlock billions in equity currently frozen in affected communities. The bill advanced unanimously, 51-0. The Fair Credit Reporting Reseller Accuracy Act (H.R. 8141) would clarify that credit report resellers are not liable for inaccuracies in data they are contractually required to transmit unaltered, protecting efficiency and reducing costs in the mortgage lending process. The measure advanced by voice vote. MBA's comment letter also expressed support for H.R. 7030, the Securing Facilities for Mental Health Services Act, which would expand FHA mortgage insurance to cover mental health facilities. Interestingly, the bill was not formally considered during this markup as a result of a procedural snafu. As is customary, MBA will continue to monitor House floor scheduling and advocate for measures our association supports as they advance - and will continue working with Congress to promote a competitive, sustainable real estate finance market.

MBA Comments on Proposed NMLS Testing and Education Fee Increases: Last Tuesday, MBA sent a letter to the Nationwide Multistate Licensing System (NMLS), the State Regulatory Registry, and the Conference of State Bank Supervisors (CSBS) on its third phase of proposed NMLS fee increases. This last phase would impose small increases in testing and education fees required for licensing under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). Intended to account for growth in operational and technology costs, the proposal increases credit banking fees from $1.50 to $1.55 per hour, effective January 1, 2027, and SAFE Mortgage Loan Originator (MLO) test enrollment increases from $110 to $120, effective March 1, 2027. In discussion with members, MBA found these increases to be nominal and not substantially impactful to business operations. However, MBA took the opportunity to make four recommendations for the NMLS, based on member feedback, as modernization efforts continue. The letter recommends: Streamlining the sponsorship submission process to eliminate the need to perform a separate search for sponsorship processing after submitting a filing; Improving communication on licensing with regulators within the system to be more in line with the State Examination System communication process; Enhancing MU1 records to allow licensees to designate a Qualified individual (QI) by specific license types within a state; and, Allowing for designation of team names using a field similar to the "Other Names" or "Prior Names" fields used in individual records.MBA will continue to engage with CSBS as NMLS Modernization rolls out and ask for member feedback on the process.

California Air Resources Board to Hold Public Workshop on GHG Reporting Requirements: On July 21, the California Air Resources Board (CARB) will hold a public workshop as part of its development of reporting requirements related to greenhouse gas emissions, including those related to loans backed by commercial real estate. California Senate Bill (SB) 253 requires companies with revenues of more than $1 billion that do business in California to disclose their greenhouse gas emissions (GHG). The law includes Scope 3 GHG emissions, which are indirect emissions that occur in the upstream and downstream value chain and, for lenders, can include emissions tied to properties they lend on. CARB is developing rules to implement the reporting requirements. Staff will provide an update on regulatory concepts for Scope 1 and 2 greenhouse gas (GHG) emissions reporting requirements for 2027 and beyond, including data assurance. Staff will also discuss CARB’s proposed approach for Scope 3 emissions reporting beginning in 2027. MBA has provided input to CARB about Scope 3 requirements, including in a letter, arguing, “We want to thank CARB for its outreach and its interest in getting these rules right. Getting things wrong risks imposing significant costs while producing disclosures that are inconsistent, unreliable, and of limited decision-making value, an outcome that has already been observed in other jurisdictions and corrected through the introduction of flexibility, phased implementation, and sector-specific approaches.” The Workshop will take place Tuesday, July 21, 2026, from 9:30 a.m. to 12:30 p.m. (Pacific Time). 

NMLS Ombudsman Meeting at AARMR: Submit Your Topics for August: Agenda items are now being accepted for discussion at the next National Multistate Licensing System (NMLS) Ombudsman meeting, which will be held on Tuesday, August 11, from 9 a.m. to noon PDT at AARMR's 36th Annual Regulatory Conference & Training​ in Bellevue, Washington. Items must be submitted to [email protected] no later than 5 p.m. EDT on Monday, July 20^th, and will later be posted on the Ombudsman page​ of the NMLS Resource Center. Please note, those who submit a topic or their designee must attend the meeting in-person to present it. MBA recommends member companies participate in each of the twice annual Ombudsman meetings, which are free to attend, and also register for the AARMR conference. MBA is currently collecting member feedback for any concerns it should raise on behalf of its members. The NMLS Ombudsman meeting is an opportunity to discuss issues and topics with state regulators concerning NMLS, the State Examination System (SES), state licensing and supervision, and federal registration. Outside of the opportunity to present a topic of concern, the Ombudsman meeting itself provides a unique opportunity to understand the current state of the system and a constructive open forum for industry, regulators and the stewards of the NMLS. MBA staff will attend the AARMR conference and Ombudsman meeting and will brief members on any news or developments.