What will happen to HMBS 2.0 under Trump's regulatory freeze?

A few months before the opening, many housing experts were expecting it. But HMBS 2.0's final periodic report came nearly two months before Trump's inauguration, and according to an (MBA) spokesperson, the release of the term sheet may not constitute “final rulemaking” strictly according to the executive order's provisions.

According to Pete Mills, MBA's senior vice president of housing policy and strategic industry engagement, MBA remains committed to seeing HMBS 2.0 implemented.

“The MBA supports the advancement of HMBS 2.0 implementation,” Mills said HousingWire's Reverse Mortgage Daily (RMD). “This aligns with our long-term cost reduction goal, supports much-needed additional liquidity in the HMBS market, and will help manage the risk associated with the HECM program.”

But regardless of the potential scope of the order, others expected any prominent policies to be affected by the political transition. (NRMLA) President Steve Irwin said the association continues to work to ensure HMBS 2.0 crosses the proverbial finish line.

“I would expect that any proposed rulemaking that might be in the process would be such a freeze and any new rulemaking would be implemented,” Irwin told RMD. “This type of regulatory freeze is typical for an administrative transition. I am working with the NRMLA executive committee to further analyze the impact of this announcement.”

But Ginnie Mae herself has since remained silent on new developments for HMBS 2.0. RMD has repeatedly contacted HUD and Ginnie Mae officials regarding the program's potential implementation timeline, but has received no response.

In the company's fiscal 2024 financial report, Ginnie Mae was repeatedly cited as evidence of the company's work to increase liquidity and market presence.

The December report said the company is committed to “maintaining a well-functioning HMBS program that meets the needs of older Americans” and will continue to work with partners and industry stakeholders to facilitate access to liquidity.

“We believe that the way we work together with industry stakeholders will be instrumental in improving the HMBS program,” the report said. “The proposed changes will provide issuers with better liquidity and lead to a more robust HMBS market.”

But that report was also conducted under the Biden administration, and future action on housing under the new Trump administration will be “paused” until the administration's nominee for HUD Secretary Scott Turner is in place.

Turner cleared a logistical hurdle to sit on a party-line vote from the Banking, Housing and Urban Affairs Committee on Thursday. His nomination now goes to the full Senate, and political analysts agree.

Once that happens, other key decision-makers are more likely to be nominated, including Julia Gordon's replacement as FHA commissioner, as well as a potential new candidate for Ginnie Mae president.

MBA on Thursday called for Turner's swift confirmation, saying his approval is “an important step in building our core staff and building leadership at (FHA) and Ginnie Mae.” NRMLA previously signed an earlier letter to congressional leaders similarly urging swift action on Turner's nomination.