CRA final rule withdrawn 



The final rule of the Community Reinvestment Act (CRA) issued in October 2023 will be withdrawn by the three federal banking regulators, according to a joint announcement. The notice came from the Federal Reserve, Office of the Comptroller of the Currency, and Federal Deposit Insurance Corporation and cites pending litigation concerning certain provisions of the rule as reasoning for the decision. CRA was originally enacted in 1977 in order to combat redlining and discrimination and serves as a nationwide infrastructure for banking officers dedicated to community development in underserved areas. The updated rule intended to consider how banking has evolved in the age of technology and online banking, as well as provide more clarity on what activities are CRA eligible and address so-called CRA-deserts where activity was limited.

“The agencies will continue to work together to promote a consistent regulatory approach on their implementation of the CRA,” the agencies wrote. CRA will revert the ruling back to the previous version. “The Community Reinvestment Act (CRA) has been instrumental in ensuring that bank capital serves all communities across the United States,” NHC’s President and CEO David Dworkin said in a March 28 statement. “Financing agencies have built a community investment infrastructure over time that has generated significant investments in underserved areas and provided strong returns for the banking industry. As a result, communities have seen substantial benefits. Although there remain areas for improvement, the impetus for reform over the past eight years has been the need for greater clarity and consistency. Given the history of competing regulatory efforts and court decisions, the most effective way to achieve this clarity and consistency is to maintain the current status of CRA under the 1995 rule,” the statement said.

FHFA announces a variety of changes via X platform 

The Federal Housing Finance Agency (FHFA) has introduced several policy changes for Fannie Mae and Freddie Mac (the Enterprises), as well as the Federal Home Loan Bank System (FHLBanks). These changes were announced through a series of posts on the social media platform X by Director William Pulte. The posts indicate a return to what some view as FHFA’s core liquidity mission, signaling a retreat from compliance-oriented regulations put in place during the Biden administration.

FHFA rescinded the Enterprise Special Purpose Credit Programs (SPCPs), a chief affordability tool for first-time and first-generation homebuyers. SPCPs help homeowners through targeted downpayment assistance, overcoming one of the main barriers to homeownership for certain communities that often lack generational wealth. Another post also rescinds the Unfair or Deceptive Acts or Practices (UDAP) Compliance. The UDAP directive garnered positive responses from lenders who found UDAP compliance policies at the Enterprises to be burdensome and duplicative. FHFA also terminated the Biden administration’s Equitable Housing Finance Planning requirements for the Enterprises.

Another post rescinds the tenant protections enacted by FHFA for multifamily properties in July of last year. The requirements dictated 30-day written notice of rent increases, 30-day notice of lease expiration, and a minimum 5-day grace period for late rent payments. Some trade groups applauded the decision, citing compliance costs and deferral to state and local laws. Other groups at the time of the enacted protections stated that they were minimal and should have gone further to protect renters from predatory and abusive landlords. NHC cautioned the Biden administration against using the Enterprises as regulatory agencies in several meetings, including two at the White House in 2022.

Another post directs Fannie Mae and Freddie Mac to revise their radon inspection policies for multifamily homes. The move responds to a 2022 directive requiring the Enterprises to adopt changes to their radon testing policies. Other posts rescind advisory bulletins for climate-risk management in the Enterprises and the FHLBank system. Director Pulte justified the rescission by arguing that the development of a separate climate risk framework for the FHLBanks would produce unnecessary expenses.

HUD ordered to reinstate fair housing grants  

A federal judge in Massachusetts has ordered the reinstatement of nearly $30 million in fair housing grants that were withheld by the Trump administration through the Department of Government Efficiency. The judge’s order also temporarily stops HUD’s cancellation of the grants, which were designated for 78 Fair Housing Initiatives Program recipients working to combat housing discrimination.

“Fair housing organizations are on the front lines of efforts to combat housing discrimination through enforcement of the Fair Housing Act,” stated Lisa Rise, President and CEO, National Fair Housing Alliance (NFHA). “Without their efforts, survivors of sexual harassment in housing; veterans with disabilities requiring accessible housing; and people of color seeking to buy a home free of racial harassment, and families with children would have no protection or anywhere to turn to uphold the law. The Trump Administration’s abrupt elimination of funding threatens drastic consequences for more than 75 fair housing groups around the country and creates fear, chaos, insecurity, and dysfunction in an already fragile housing market.”

HUD ends FHA mortgages for certain immigrants 

The Department of Housing and Urban Development (HUD) has terminated mortgage eligibility for certain statuses of immigrants, restricting access to FHA mortgages for only lawful permanent residents. The policy specifically revises the residency requirements and removes access to FHA-insured mortgages by eliminating in its entirety the “non-permanent residents” category from the Title I and Title II programs. The programs previously allowed mortgages for those under the Deferred Action for Childhood Arrivals (DACA) program and was enacted during the last Trump administration. Under the new policy, legal residents such as H1B and other long-term employment-based visa holders will no longer be able to get an FHA mortgage.

The new policy was announced a day after the formation of a new partnership between HUD and the Department of Homeland Security (DHS) which aims to prevent undocumented immigrants from accessing federal housing programs. Most HUD assistance programs already have restricted eligibility for immigrants, and mixed-status households receive prorated assistance for noncitizens living in the unit.

HUD Secretary Scott Turner took to the social media platform X to announce the move on Wednesday. “Today, HUD terminated Biden's taxpayer-backed FHA mortgages for illegal aliens," Turner wrote. "American taxpayers will no longer subsidize open borders by offering home loans to those who enter our nation illegally.”

On Tuesday, Turner announced alongside DHS Secretary Kristi Noem a new collaboration between their respective departments. One component of that new partnership will see a HUD staffer added to the DHS’s Incident Command Center in order to alert immigration authorities of undocumented immigrants utilizing federal housing programs. Turner claimed that the initiative will help to better address the housing affordability crisis. 

Noem floats eliminating FEMA, funds frozen 



Secretary of the Department of Homeland Security (DHS) Kristi Noem announced to Cabinet members that she is seeking to eliminate the Federal Emergency Management Agency (FEMA), which is tasked with funding rebuilding efforts in areas affected by natural disasters and providing grants to help communities prepare for catastrophes. No formal decisions have been made thus far. The announcement came days after President Trump signed an executive order directing state and local authorities to play a more active role in disaster response.

In a subsequent private meeting with Trump administration officials, Noem specified plans to limit the agency exclusively to life-saving operations and emergency resources distribution and place it under the direct oversight of the White House. It remains unclear whether Noem aims to ultimately remove FEMA functions from the federal government altogether or place them under the authority of another agency.

On Friday, FEMA’s nearly $10 billion in funds were frozen as the agency scrutinizes programs to determine if they provide assistance to undocumented immigrants.  

Bipartisan legislation introduced to spur housing conversions 



Representatives Jimmy Gomez (D-Calif.), Mike Carey (R-Ohio), and John Larson (D-Conn.) introduced bipartisan legislation to spur development of vacant and underutilized spaces. The bill, titled Revitalizing Downtowns and Main Streets Act of 2025, aims to transform vacant commercial properties into residential housing, providing a dual solution to the challenges of empty office spaces and the shortage of affordable homes. The bill proposes a federal tax credit, modeled after the Historic Preservation Tax Credit, to incentivize the conversion of older commercial buildings into residential units.

“The housing crisis is squeezing family budgets, while empty commercial and office buildings sit unused in downtowns and in suburban and rural communities,” said Gomez. “Our bipartisan bill converts these empty commercial buildings into homes families can afford—a smart way to fix both problems. We need a housing boom like we haven’t seen since World War II, so this legislation is a no-brainer. We’re helping people live where they work by filling vacant real estate and increasing our housing supply.”

It is endorsed by a number of housing groups, including American Land Title Association, Institute of Real Estate Management, Mortgage Bankers Association, National Apartment Association, National Association of Home Builders, National Association of Realtors®, National Multifamily Housing Council, National Rental Home Council, and Up for Growth Action.