Reconciliation Bill signed into law

President Trump signed the “One Big Beautiful Bill” into law, making significant changes to the nation’s tax and benefits systems along with meaningful expansions to housing and economic development policies. “The housing provisions included in this bill are the most consequential and positive housing legislation in decades,” said NHC President and CEO David Dworkin. “These measures reflect a balanced approach to strengthening the nation’s housing ecosystem, supporting both the development of multifamily rental housing and the financial well-being of single-family borrowers.”

Specifically, the housing provisions include:

--Permanent expansions to the Low Income Housing Tax Credit (LIHTC).

• Permanent 12% increase in the allocation for the 9% Housing Credit.
• Reduction in the bond financing threshold from 50% to 25%.

--Permanent extension of the New Markets Tax Credit (NMTC).

--Permanent extension of Opportunity Zones (OZs) and:

• Authorization for the designation of OZs every 10 years;
• 30% step-up in basis for investments in rural qualified opportunity funds (QOFs) and apply to year-by-year basis;
• Seven-year deferral window;
• Reporting requirements and $15MM in appropriations to the IRS for implementation;
• Does not include affordable housing incentives.

--Permanent extension of the $750,000 mortgage limitation for the mortgage interest deduction (MID).

• The MID limitation would have reverted to $1,000,000 permanently at the end of this year. The bill makes permanent the lower cap of $750,000 created by the Tax Cut and Jobs Act (TCJA) of 2017 for years 2018 through 2025.

--Permanently reinstates the mortgage insurance premium (MIP) deduction.

• The MIP was originally created in the Tax Relief and Health Care Act of 2006 and has been extended several times since. It expired on December 31, 2021.

NHC advocates for critical programs ahead of House THUD Bill mark-up 

On July 14 and 17, the House Appropriations Transportation, Housing, and Urban Development (THUD) Subcommittee and full Committee, respectively, will mark-up the yet-to-be-released THUD appropriations package. NHC sent letters to the Chairs and Ranking Members of the House and Senate THUD Committees, Senators Cindy Hyde-Smith (R-Miss.) and Kirsten Gillibrand (D-N.Y.), and Representatives Steve Womack (R-Ark.) and James Clyburn (D-S.C.) outlining the importance of HUD programs and their impacts in each of the policymakers’ states.  

“We write to express deep concern over the President’s fiscal year (FY) 2026 discretionary budget request, which proposes nearly a 44% reduction in the Department of Housing and Urban Development (HUD)’s funding,” said NHC President and CEO David Dworkin in the letters, highlighting the Housing Choice Voucher (HCV) program, HOME program, Community Development Block Grants (CDBG), Family Self-Sufficiency, and NeighborWorks® America (NWA). “While there are reasonable reforms and efficiencies to be made in HUD’s budget, we believe those efficiencies must improve and leverage support for affordable housing, not reduce or replace already under-resourced programs.” 

The President’s FY 26 budget eliminates the HCV program and replaces it with a state-based program at significantly less funding, eliminates the HOME and CDBG programs, and eliminates NeighborWorks® America. “As a result, the proposed cuts would ultimately exacerbate the existing supply crisis, increase costs for low- and middle-income American households, drive up homelessness, and force some apartment owners and operators out of business,” the letter continued. “We request that you maintain current funding levels across the board, and that any significant restructuring of programs such as the HCV program be discussed in the authorizing committees with significant consultation of state and local stakeholders, as well as industry and nonprofit stakeholders.” 

Senate confirms Gould as Comptroller of the Currency

In a 50-45 party-line vote, the Senate confirmed Jonathan Gould as Comptroller of the Currency for a five-year term at the Office of the Comptroller of the Currency (OCC). Gould previously served as Chief Counsel at the OCC from 2018-2021. He most recently served as a partner at the Washington, D.C.-based law firm Jones Day. Prior to that, he was the chief legal officer at Bitfury, a cryptocurrency company, and previously served as chief counsel for the Senate Banking Committee under Senator Mike Crapo (R-ID). He will replace Rodney Hood who became Acting Comptroller in February 2025.

Several industry organizations, including the MBA, ABA, and Consumer Bankers Association celebrated his confirmation. “We look forward to Comptroller Gould’s measured approach to banking supervision, with a focus on ensuring safety and soundness in the banking system without imposing overly complex or burdensome regulatory oversight,” said MBA’s President and CEO Bob Broeksmit.



The OCC is an independent bureau of the U.S. Department of the Treasury which charters, regulates, and supervises all national banks, federal savings associations, and federal branches and agencies of foreign banks. 

FHFA approves immediate use of VantageScore 4.0 for all Fannie Mae and Freddie Mac mortgages

The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will begin accepting VantageScore 4.0 for all mortgage purchases, effective immediately, marking a major shift to current credit score requirements. Although the Enterprises will still rely on tri-merge credit reports using data from Experian, Equifax, and TransUnion, the adoption of VantageScore 4.0 is anticipated to broaden access to mortgage credit and reduce borrowing costs.

FHFA Director Bill Pulte emphasized that the change will expand “credit access to millions of forgotten Americans” and bring down closing costs for “people who live in rural areas, [and] renters who pay their rent on time every month.” VantageScore President and CEO Silvio Tavares stated, “The FHFA’s long-expected decision to accept VantageScore 4.0 will revolutionize the American mortgage market and grant millions of creditworthy Americans the golden opportunity to own their homes.” VantageScore believes the change will enable $1 trillion in new mortgages and help five million more Americans qualify for homeownership.



The Community Home Lenders of America, welcomed the announcement, describing it as a “win-win for both consumers and lenders.” As implementation unfolds, stakeholders will monitor potential moves toward simplified reporting models to further promote efficiency and affordability.

New bills introduced to expand homeownership and decriminalize homelessness

Congressional Democrats have introduced two housing bills aimed at increasing homeownership and protecting the rights of unhoused individuals. “The Downpayment Toward Equity Act”, reintroduced by House Financial Services Committee Ranking Member Maxine Waters (D-Calif.), along with Reps. Al Green (D-Texas), Ayanna Pressley (D-Mass.), and Jesús “Chuy” García (D-Ill.), allocates $100 billion in direct assistance to first-time, first-generation homebuyers. It provides up to $20,000 for first-generation homebuyers and up to $25,000 for those who are socially and economically disadvantaged to help cover down payments, closing costs, and mortgage rate buydowns. Designed to benefit historically marginalized communities, the proposal also includes a homebuyer education requirement to promote long-term, sustainable ownership.

“For too long, families of color and first-generation buyers have faced insurmountable barriers to owning a home due to predatory lending, high downpayment requirements, and increasing home prices,” said Ranking Member Waters. “The Downpayment Toward Equity Act will provide targeted, direct assistance to help millions of hardworking Americans finally achieve homeownership and begin to build wealth for themselves and their families.” The National Fair Housing Alliance and the National Association of REALTORS® applauded the bill’s introduction, highlighting its potential to create up to five million new homeowners and help close long-standing racial wealth gaps.

Reps. Pramila Jayapal (D-Wash.) and Maxwell Frost (D-Fla.) also introduced "The Housing Not Handcuffs Act", which would prohibit the criminalization of homelessness on federal lands when no alternative shelter options are available. “Fining people who already can’t afford to live makes no sense and will only result in longer-term homelessness,” stated Rep. Jayapal. The bill was introduced in response to more than 260 local laws enacted since the Supreme Court’s Grants Pass decision, which permits cities to criminalize homelessness, amid a nationwide 18% increase in homelessness in 2024.

Both of the housing proposals signal growing momentum in Congress to address housing inequities and protect vulnerable populations. Housing advocates have urged swift action, emphasizing that expanding access to homeownership and ending punitive approaches to homelessness are essential steps toward ensuring housing as a human right.

HUD rescinds FHA policies and PAVE

The U.S. Department of Housing and Urban Development (HUD) announced the rescission of more than a dozen policies within the Federal Housing Administration’s (FHA) Single Family Mortgage Insurance program. Outlined in a series of Mortgagee Letters, these updates are designed to reduce financing costs and regulatory burdens for both homebuyers and lenders.

Among the changes are the elimination of appraisal procedures, the removal of the full-time Direct Endorsement underwriter requirement, and the discontinuation of the Supplemental Consumer Information Form (SCIF). HUD also reversed flood risk management standards for new construction and lifted pre-endorsement inspection requirements in federally declared disaster areas. HUD expects these actions to cut delays and development costs, particularly for housing built in response to natural disasters. “These rescissions are bold, necessary, and long overdue,” said HUD Secretary Scott Turner. He emphasized that the revisions will “slash red tape that drives up costs and shuts families out of the market.”

HUD and OMB also announced the termination of Biden-era policies introduced under the Property Appraisal and Valuation Equity (PAVE) task force. “By tearing down these onerous hurdles, we’re freeing professionals from a tangle of red tape that drove up costs, inhibited access to homeownership, and discouraged market participation,” said HUD Secretary Turner. “Under President Trump’s leadership, the Biden-era’s obsession with DEI and overregulation is over. At HUD, we’re restoring common sense and putting the American Dream of homeownership back within reach.”

Comment window reopened for HUD and USDA’s proposed energy code updates

HUD and the U.S. Department of Agriculture (USDA) are reopening the public comment period on their 2024 proposal to adopt the 2021 International Energy Conservation Code (IECC) for new single-family homes and ASHRAE 90.1-2019 for multifamily buildings as the minimum energy efficiency standards for federally funded new construction. Among the programs affected include HOME, the Housing Trust Fund, and USDA’s Section 502 and 538 loans.

The original final determination, published in April 2024, found that the new standards would not compromise the affordability or availability of housing covered under the Energy Independence and Security Act. According to the agencies, the updated standards would reduce long-term utility costs, improve health and safety outcomes, and improve climate resilience. However, HUD and USDA are requesting feedback on whether any of the assumptions underlying their affordability analysis have materially changed.

The proposal has sparked pushback from the National Association of Home Builders (NAHB) and 15 state attorneys general, who filed a lawsuit earlier this year to block implementation, arguing the changes could increase construction costs by $31,000 per home, further straining housing affordability. NAHB Chairman Carl Harris called the rule “ill conceived,” warning it could discourage much-needed new housing development.

Public comments on the proposal are open through August 6, 2025, and stakeholders are encouraged to provide feedback. 

USDA overhauls environmental review process to speed development projects

The USDA has issued an interim final rule significantly revising its environmental review process under the National Environmental Policy Act (NEPA). The new rule aims to reduce delays in rural housing and infrastructure projects by consolidating seven agency-specific NEPA regulations into a single department-wide framework. USDA estimates this will reduce regulatory requirements by 66%, streamlining approvals and eliminating bureaucratic hurdles.

While supporters argue the changes will improve delivery timelines for rural projects, environmental and community advocates have raised concerns that the rule narrows the scope of environmental review, limits opportunities for public engagement, reduces accountability, and increases the risk of negative environmental and health outcomes in rural and low-income communities.

Secretary Rollins defended the rule as a necessary step to modernize infrastructure delivery in rural America. The interim final rule was effective on July 3, and public comments are due by July 30.  

Housing market cools despite falling mortgage rates

In May, new single-family home sales fell to 623,000—a 13.7% drop from April and 6.3% below May 2024—according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. At the same time, inventory rose to 507,000 homes, representing a 9.8-month supply, up from 8.3-months in April. Despite weaker sales, the median sales price rose 3.7% from April to $426,600, reflecting ongoing affordability challenges.

Fannie Mae’s June 2025 National Housing Survey echoed these trends. Its Home Purchase Sentiment Index (HPSI), a composite index designed to track consumers’ housing-related attitudes, fell by 3.7 points to 69.8, showing declining consumer confidence. Five of six sentiment indicators dropped —Job Loss Concern, Mortgage Rate Outlook, Change in Household Income, Selling Conditions, and Home Price Outlook —with only Buyer Optimism ticking up slightly. The share of consumers who say it is a good time to buy increased by two percentage points (28%), while the share who say it is a bad time to buy (71%) decreased by three percentage points. Just 41% of workers reported no job loss concern—near a record low.

Meanwhile, mortgage rates dipped for the fifth straight week. Freddie Mac reported the average 30-year fixed rate dropped to 6.67%, the lowest since March. Sam Khater, Freddie Mac’s chief economist, noted “declining mortgage rates are encouraging and, while overall affordability challenges remain, we are seeing more sellers enter the market giving prospective buyers an advantage.”

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