Weekly update from the National Housing Conference | | News from Washington | By Brittany Webb | | |
FHFA, HUD announce new credit scoring model options
In a joint press conference, the Federal Housing Finance Agency (FHFA) and the U.S. Department of Housing and Urban Development (HUD) announced that their respective underwriting software will begin allowing VantageScore 4.0 and FICO 10T credit scoring models. The announcement marks the first new credit scoring model implementation in decades and looks to help lower borrowing costs and modernize mortgage processes while balancing safety and soundness risks. HUD will allow FICO 10T and VantageScore 4.0 options for Federal Housing Administration loans, while FHFA is launching a pilot program for VantageScore 4, with plans to pilot FICO 10T in the future. A potential new pricing grid that reflects the updated models was also teased by FHFA Director William Pulte.
“We are modernizing credit scoring with more predictive models, helping millions of Americans who responsibly pay rent qualify for mortgages. That’s fair, it’s commonsense, and it’s finally delivering the benefits of competition to homebuyers nationwide,” said Director Pulte.
“By embracing additional predictive credit scoring models, we are taking a meaningful step toward expanding access to homeownership – particularly for creditworthy borrowers who may have been overlooked under older systems,” stated HUD Secretary Scott Turner.
Fannie Mae and Freddie Mac described a limited rollout effort with approved lenders for the time being, noting that interested lenders can contact their representative if they wish to pursue new model usage before a broader rollout effort. Details on which lenders will be allowed to use the new models are not yet clear; however, groups like the Mortgage Bankers Association, Pennymac, and the Community Home Lenders of America all lauded the move as an important step to introducing competition into the market and modernizing credit scoring frameworks.
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Updated Start Time Announced!
Housing Visionary Awards Gala now begins at 5:00 PM!
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Sponsorship Opportunities Available
Aligning your organization with the Gala and its honorees enhances your visibility, engagement, and networking opportunities. Supporting one another and working collaboratively across sectors, we strengthen our collective ability to address the nation’s most pressing affordable housing challenges.
Please consider supporting this year’s honorees and NHC by purchasing a ticket and/or becoming a Gala sponsor. Sponsorship opportunities begin at $3,500. You can also show your support by placing an ad in the Gala Tribute Book. New for 2026, we’re offering the opportunity to display a digital ad onsite at the Anthem.
It’s a meaningful way to celebrate the accomplishments of this year’s honorees or highlight your commitment to our shared mission. Tribute Book ads start at $750 and digital ads start at $325. You can also choose to have your name listed in the Gala Tribute Book for $250. Click here to learn more about these opportunities.
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NHC and members urge HUD to pull mixed-status rule
The National Housing Conference (NHC) called on HUD to withdraw its proposed rule that would significantly alter eligibility verification requirements for federally assisted housing, warning it would drive up costs and worsen homelessness. The new rule would require every resident in HUD-funded housing to provide proof of U.S. citizenship or eligible immigration status, effectively ending prorated assistance for mixed-status households with eligible residents. NHC was among many housing groups that warned that roughly 20,000 households would face the choice of either separating their families or losing housing assistance, and that 80% of those households include children. A letter was also submitted by the Congressional Tri-Caucus, composed of the Congressional Hispanic Caucus, Congressional Asian Pacific American Caucus, and the Congressional Black Caucus, condemning the proposal.
HUD Secretary Scott Turner framed the proposal as closing loopholes and ensuring taxpayer funds do not benefit ineligible individuals. “HUD’s proposed rule will guarantee that all residents in HUD-funded housing are eligible tenants. We have zero tolerance for pushing aside hardworking U.S. citizens while enabling others to exploit decades-old loopholes,” stated Turner.
NHC’s comment letter pushed back directly, writing “HUD’s concerns over immigration issues can and should be addressed through appropriate enforcement of existing laws, not wholesale eviction of families who are in this country legally, including tens of thousands of U.S. citizens.”
On the fiscal side, NHC President and CEO David Dworkin noted that the proposal “isn’t just misguided housing policy; it is also bad budget policy.” HUD’s own Regulatory Impact Analysis estimates it would cost between $311 and $385 million to maintain the same number of assisted households, with no additional funding identified to cover that gap. NHC’s letter stated that full withdrawal is the only responsible course, and should any final rule proceed, changes should only apply to new program entrants to avoid retroactive enforcement that would trigger widespread displacement.
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CFPB finalizes rule on disparate impact under ECOA
The Consumer Financial Protection Bureau (CFPB) issued its final rule officially eliminating disparate impact liability from Regulation B of the Equal Credit Opportunity Act (ECOA), marking a significant rollback of fair lending enforcement. Set to take effect July 21, the rule was finalized in direct response to the administration’s executive order directing federal agencies to eliminate the use of disparate impact liability to the maximum degree possible. Over 64,000 comments were received on the proposal. NHC opposed the proposed rule, arguing that it contradicts decades of legal precedent and congressional intent, and that removing the tools used to measure and address lending discrimination “does not eliminate discrimination; it only makes it invisible and unchecked.”
The final rule significantly narrows the scope of the discouragement prohibition, shifting toward an intent-focused standard. Discouragement is now limited to oral or written statements, including visuals, directed at applicants or prospective applicants, and no longer extends to broader acts or practices such as marketing strategies or outreach patterns. A statement is considered discouraging only if a creditor knows or should know it would cause a reasonable person to believe they would be denied credit or offered less favorable terms because of a protected characteristic.
On Special Purpose Credit Programs, the rule prohibits for-profit institutions from using race, color, national origin, or sex as eligibility criteria. Programs based on religion, marital status, age, or income derived from public assistance remain permitted, provided they meet a written plan requirement, demonstrate why the targeted class would not otherwise qualify for credit under the institution’s standards, and show that each participant would not receive credit based on their protected characteristic alone.
Responses to the change have been sharply divided, with the National Fair Housing Alliance calling it a direct threat to long-standing fair lending protections and the American Bankers Association supporting the changes as a framework that would encourage sound, risk-based underwriting.
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House members call for BTR fix in housing legislation
A bipartisan group of 76 members of the House sent a letter to leadership urging that Section 901 in the Senate-passed 21st Century ROAD to Housing Act be removed or changed. Section 901 refers to the bill section that restricts the purchase activity of large institutional investors in the housing marketplace. Though the provision intends to encourage owner occupancy of single-family homes, it simultaneously stifles the Build-to-Rent (BTR) market, which provides vital affordable housing stock through purpose-built rental housing.
“By applying a mandatory seven-year divestiture requirements and sweeping definitions of “purchase” and “investment control,” Section 901 would effectively halt the production of Build-to-Rent (BTR) housing nationwide and eliminate hundreds of thousands of future units,” the letter reads. “Industry experts warn that these provisions would not redirect these homes to ownership opportunities; instead, they would simply prevent them from being built at all, worsening the housing shortage and undermining the bipartisan supply-side reforms included elsewhere in the legislation.”
The letter was led by the Build America Caucus and Real Estate Caucus, and features signatures from most members of the House Financial Services Committee. The group argues that Section 901 as currently drafted will cut construction of rental housing by 72,000 units per year and urges it to be removed or significantly changed in any housing legislation moving forward.
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NFHA, Urban launch fair housing mapping tool
The National Fair Housing Alliance (NFHA), alongside the Urban Institute, launched a new mapping tool that offers a comprehensive overview of fair housing-related data. The online tool features interactive mapping and trend analysis, extensive housing data, community and demographic indicators, and opportunity and access insights. The new tool offers access to vital information at the state, county, and census-tract level to help inform advocates and policy leaders.
“Data is one of the most powerful tools we have to advance fair housing and expand opportunity for all,” said Nikitra Bailey, Executive Vice President of the NFHA. “As we commemorate Fair Housing Month, and at a time when critical public data sources are being removed or restricted, this tool ensures that advocates, local leaders, and everyday people have what they need to identify where housing discrimination persists, where investment is needed, and how to build resilient, well-resourced communities where everyone can thrive.”
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NHC seeks experienced policy director
The National Housing Conference, the nation’s oldest and broadest housing coalition, seeks an experienced Policy Director to represent our diverse coalition on Capitol Hill, within the Administration, and among key stakeholder groups. This role will help shape and advance NHC’s federal policy and advocacy initiatives, working closely with Congress, federal agencies, and national partners to drive practical, bipartisan housing solutions. Reporting to the president and CEO, the Policy Director plays a central role in convening members, leading key working groups and events, and collaborating across research, communications, and coalition-building efforts. NHC offers a dynamic, team-oriented environment and the opportunity to play a leading role in shaping national housing policy at a pivotal time for the industry.
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A 250-city study favors homeownership in most markets
AD Mortgage’s 2026 10-Year Rent vs. Buy Wealth Study reveals which markets favor renting versus homeownership for equity building. Through a study analyzing outcomes across 250 cities, the data compares projected homeowner equity after a decade against a renter who invests their down payment and monthly savings in the S&P 500. The results show that homeownership outperforms renting in nearly 80% of the cities studied, driven by the combined effect of rising property values and steady mortgage paydown. Markets with the strongest projected appreciation produced the largest equity advantages for buyers, with Florida cities like Miami, St. Petersburg, Tampa, and Orlando. The underlying data shows that renters who diligently invest come out ahead in expensive coastal markets like San Jose, Los Angeles, San Francisco, and some areas of North Dakota. The data referenced below only reflects a portion of the full study, which spans all 50 states and 250 cities.
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Next City published an op-ed arguing that AI has real potential to help address the housing crisis when paired with strong underlying data infrastructure. The piece frames the housing shortage as rooted in decades of restrictive zoning, rising construction costs, and underbuilding, leaving the U.S. short of more than 7 million affordable homes and more than 22.6 million renters cost-burdened. Rather than positioning AI as a silver bullet, the piece calls on city leaders to set clear guidelines, build community feedback loops, and audit AI use regularly.
Hülya Arık, PhD, a senior economist at the Tennessee Housing Development Agency (THDA), explores the relationship between housing supply and affordability in her article “Building Our Way to Affordability? What the Housing Supply Debate Means for Tennessee.” She argues that while increasing housing supply can help ease price pressures over time, construction alone is unlikely to adequately address the needs of low- and extremely low-income households. Instead, she emphasizes a balanced approach that combines new construction with targeted affordability programs such as subsidies and rental assistance.
In its April FHA+ publication, Gate House Strategies provides a broad overview of the shifting housing finance landscape, highlighting key policy developments, market pressures, and emerging risks. The publication explores the growing role of artificial intelligence in mortgage finance, including its potential risks, alongside broader market dynamics such as credit trends, regulatory developments, and the impact of student debt on homeownership. The publication emphasizes the intersection of economic pressures, technological change, and federal policy in shaping access to housing and the stability of the mortgage market.
| | No upcoming events this week. | | The National Housing Conference is a diverse continuum of affordable housing stakeholders that convene and collaborate through dialogue, advocacy, research, and education, to develop equitable solutions that serve our common interest. | | Defending Our American Home since 1931 | | Copyright © 2024. All Rights Reserved. | | | | |
