As trigger leads ban inches closer, MBA’s Broeksmit talks deregulation, conservatorship

H.R. 2808 bans the use of trigger leads while carving out exceptions for the current loan servicer, the originator and any banks that have a depository relationship with the borrower.

It would be a big blow to the credit reporting agencies — particularly Experian, sources said — that make millions of dollars each year selling leads to other lenders looking to snag the loan after a hard credit pull.

Given that the Senate has adopted similar legislation, stakeholders expect the bill to become law this year. “Then this long nightmare will be behind us,” said Bob Broeksmit, the MBA’s president and CEO.

Releasing Fannie and Freddie

Broeksmit said the MBA does not believe that President Donald Trump’s social media posts about releasing Fannie Mae and Freddie Mac after nearly 17 years of conservatorship indicate a set course or a timetable.

“I say that based on conversations with key decision makers in the administration who continue to say this is not a 2025 issue,” he said.

Treasury Secretary Scott Bessent has other priorities, he noted, including tariff negotiations and the tax bill.
“They’ve been in conservatorship for too long, but it works,” Broeksmit said. “The top concern is not increasing the cost of mortgage credit for Americans post-release. And in order to do that, the investors of the MBS need to be satisfied that the government stands behind the credit risk on the bonds.”

The GSEs also don’t yet have the level of capital needed to stand on their own, he said, meaning it will continue to take time to build capital or the capital retention rules must change. The Trump administration, Broeksmit said, has shown no interest in dramatically lowering the capital ratio requirements.

Deregulation steps

If the chaos of the Trump administration weren’t sucking all the oxygen out of the air, its deregulation initiatives would be a larger news story, Broeksmit said.

“This is the really good news part of the first 140 days,” he said. “There has been so much at HUD, FHFA, CFPB that has lifted burdens off this industry.”

For example, the Biden administration established onerous flood plain rules that would have required a two-foot elevation in much of the country. That’s gone. New environmental building standards that would have dramatically increased costs are also gone. And the Federal Housing Finance Agency also rescinded a 2024 advisory bulletin detailing its enforcement against unfair or deceptive acts or practices (UDAP).

Despite some clamoring for the death of the Consumer Financial Protection Bureau, Broeksmit said the bureau is needed. The MBA has lobbied for there to be enough staff to rewrite or rescind rules.

He also said that federal regulators are increasingly moving into state enforcement roles. One state in particular is looking to pursue fair lending actions and if that happens, the MBA plans to sue, he added.

Broeksmit also noted that the recent notice to alter the LO Comp rule could bring a much-needed opportunity to reshape the rules.

Lastly, Broeksmit said that real estate provisions in the tax bill are favorable. Ultimately, in regard to the Trump administration’s actions on housing, “if you crowd out the noise, there’s a lot of good stuff happening,” he said.

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