NCSHA Washington Report | February 20, 2026
JPMorgan Chase Chairman and CEO Jamie Dimon, who’s probably the most influential banker in the U.S. and definitely the most colorful, spoke for many in his industry when he said last summer that residential mortgage lending had become a crappy (he used a synonym) business that’s probably been a net money loser over the last 50 years and has been made worse recently by excessive federal regulations.
“Those could be changed and would dramatically help mortgages, particularly for low-income individuals and we’ve just have failed to do it for 10 years and it wouldn’t create any additional risk,” Dimon said.
The Trump Administration seems to agree. Treasury Secretary Scott Bessent in a speech last spring said: “This administration aims to give all banks the chance to succeed — whether it’s JPMorgan or your local mortgage and loan.” He suggested lower capital requirements for mortgage loans, among other things, “could foster competitive parity across large and small banks and nonbank lenders.”
This week, Michelle Bowman, whom President Trump nominated and the Senate confirmed as vice chair for supervision at the Federal Reserve Board, said in a speech that the Fed will soon put forward proposals to relax capital rules both for mortgage loans banks retain in their portfolios and for the mortgage servicing rights they hold.
Citing total market activity from 2008 – 2023, Bowman said banks’ share of mortgage originations had dropped to 35 percent from 60 percent and their share of servicing rights had plunged to 45 percent from 95 percent. “This out-migration of origination and servicing has been costly for banks, consumers, and the overall mortgage system,” she said.
Nonbank lenders, notably independent mortgage banks (IMBs), have come to dominate mortgage lending since the Global Financial Crisis, especially loans to buyers with FHA insurance — a rough proxy for the lower-income affordable segment — where they currently have something like 87 percent of the market.
According to NCSHA data, state housing finance agencies are three times more likely to cite an IMB than a commercial bank as a “top partner,” even as community banks have many of the longest relationships with HFAs and agencies across the country continue to seek partnerships with the largest banks through initiatives like NCSHA’s HFA1 Affordable Homeownership Lender Toolkit.
An open question is whether this Trump Administration will continue efforts begun under the first one to bring large banks like JPMorgan Chase back into the business of FHA lending. FHA Commissioner (and later HUD Deputy Secretary) Brian Montgomery worked to clarify and mitigate the legal risks to banks for “regulatory defects” found in their loans to FHA-insured borrowers.
The Treasury Department in 2019 endorsed that approach and recommended new FHA procedures to provide greater clarity to lenders about what constitutes material violations and offer a safe harbor to banks that make mistakes later determined to be immaterial to loan approval.
More lenders, of all sizes and types, making more home mortgage loans would be good for home buyers everywhere.
Stockton Williams | Executive Director
In This Issue
- HUD Publishes Proposed Rule on Verification of Eligible Status for Housing Assistance
- Fed Official Previews Proposed Rules to Spur Bank Mortgage Lending
- Fannie Mae, Freddie Mac Align Manufactured Housing Lending Guidelines
- More Details Emerge on Trump Plan to Ban Institutional Single-Family Home Investments
- NCSHA in the News
- Looking Ahead
HUD Publishes Proposed Rule on Verification of Eligible Status for Housing Assistance
Today in the Federal Register, the U.S. Department of Housing and Urban Development (HUD) published a proposed rule to revise its regulations to require the verification of U.S. citizenship or eligible immigration status of all applicants and recipients of assistance under HUD-subsidized housing and limit prorated assistance to a temporary, 30-day period pending verification of the eligibility of all family members. Currently, undocumented immigrants may reside indefinitely in subsidized housing with documented family members but federal assistance is prorated to eligible family members. In a Washington Post op-ed piece published Wednesday and a HUD press release, HUD Secretary Scott Turner estimated roughly 24,000 such residents live in HUD-subsidized housing and argued federal assistance should be provided to families with no unverified members. Comments on the proposed rule are due April 21. To help inform NCSHA’s comments, please email Garth Rieman your feedback by April 10.
Fed Official Previews Proposed Rules to Spur Bank Mortgage Lending
As referenced earlier, the Federal Reserve will soon issue two proposed rules aimed at revitalizing the banking industry’s presence in the mortgage market, Federal Reserve Vice Chair for Supervision Michelle Bowman announced Monday during remarks at an American Bankers Association conference. Bowman noted that, post-Great Recession, there has been a substantial shift in mortgage lending and servicing from depository banks to nonbank mortgage lenders, a trend she contended could threaten financial stability. A major driver of this shift, Bowman argued, is a series of financial crisis-era bank capital rules that require banks to hold certain amounts of capital for each mortgage loan and mortgage servicing rights (MSRs) portfolio on their books. To address this, the Federal Reserve will issue proposals to remove the requirement banks deduct their MSR assets from their regulatory capital (the amount of capital they are expected to maintain as a buffer) and to adjust the risk-weighting for mortgage loans on bank balance sheets so they are based more on loan risk.
NCSHA will monitor developments on both proposals closely and continue to advocate for banking standards that do not disincentivize banks from partnering with HFA programs or otherwise engaging in affordable mortgage lending.
Fannie Mae, Freddie Mac Align Manufactured Housing Lending Guidelines
Under the guidance of the Federal Housing Finance Agency, Fannie Mae and Freddie Mac recently aligned key requirements for their manufactured housing lending programs, MH Advantage and CHOICEHome, respectively. Designed to ensure consistency across both offerings and support the continued evolution of quality and innovation in the manufactured housing market, the aligned specifications establish uniform requirements for homes eligible under these programs, including permanent foundations, roof pitch, energy efficiency, exterior features, and site improvements. The changes are effective June 4.
More Details Emerge on Trump Plan to Ban Institutional Single-Family Home Investments
According to an article in yesterday’s Wall Street Journal, the Trump Administration has shared with Congress more details on its proposal to ban “institutional investors” from purchasing single-family homes. Citing a memo the administration sent to congressional committees yesterday, WSJ reports the administration is asking Congress to ban investors with more than 100 single-family homes from purchasing additional homes. The proposal includes exemptions for several types of purchases, including for investors who build or heavily renovate homes for the sole purpose of renting them out. President Trump is pushing for the Senate to include the proposal in the ROAD to Housing Act, which the Senate is expected to take up shortly, and will speak on this topic during his State of the Union address next week. Last month, the president issued an executive order forbidding the federal mortgage insurance programs from insuring home purchase loans for institutional investor home purchases and directing Fannie Mae and Freddie Mac not to guarantee such loans.
NCSHA in the News
Hoodline, 2.19.26, LIC Affordable Tower Snags $136.5 Million Refi Deal
Urban Milwaukee, 2.12.26, Moore, Yakym Introduce Bicameral Legislation to Increase Access to Homeownership
National Mortgage News, 2.6.26, MBA, lenders rally behind Housing for 21st Century Act
Legislative and Regulatory Activities
- March 13 | House Financial Services Committee’s Oversight and Investigations Subcommittee | Hearing: Broken Promises: Failures of the Little Rock Housing Authority and the Impact on Residents
- March 26 | House Financial Services Committee’s Housing and Insurance Subcommittee | Hearing: Mitigation and Multiple Loss Properties: Factors Influencing the High Cost of Flooding
- April 10 | Comments Due to NCSHA | HUD Proposed Rule on Verification of Eligible Status for HUD-Subsidized Housing Assistance
- April 21 | Comments Due | HUD Proposed Rule on Verification of Eligible Status for HUD-Subsidized Housing Assistance
NCSHA, State HFA, and Industry Events
- March 9 – 11 | NAHRO Washington Conference | Washington, DC
Jennifer Schwartz will speak at this event. - March 17 | 2026 COSCDA Program Managers Training Conference | Washington, DC
Garth Rieman will speak at this event. - March 18 | New Hampshire Housing Homeownership Conference 2026 | Concord, NH
Stockton Williams will speak at this event. - March 18 | National Housing Supply Summit | Washington, DC, and Virtual
- March 18 – 19 | Yardi Forum: Affordable Housing and PHA | Boston, MA
Jennifer Schwartz will speak at this event. - March 20 | Early-Bird Registration Ends | NCSHA’s 2026 Legislative Conference | Washington, DC
- March 23 – 26 | NAHMA Top Issues in Affordable Housing Conference | Washington, DC
Jennifer Schwartz will speak at this event. - April 1 | Entry Deadline | NCSHA’s 2026 Awards for Program Excellence
- April 14 – 16 | NIFA Innovation Expo 2026 | Lincoln, NE
Jennifer Schwartz will speak at this event. - April 21 – 23 | NCSHA’s 2026 Legislative Conference | Washington, DC
- April 21 – 23 | Affordable Housing Investors Council Spring Meeting | Scottsdale, AZ
Jim Tassos will speak at this event. - June 2 – 5 | NCSHA’s Housing Credit Connect & Marketplace | St. Louis, MO
