ACUMA ONpoint
ACUMA ONpoint
Inside The Road To Housing, CFPB Turmoil, And A Possible Shutdown
Housing policy is moving, stalling, and evolving all at once, so we brought in policy analyst Joel Herberman, from Brownstein Hyatt Farber Schreck, to cut through the noise. We begin with the Road to Housing Act, its removal from the defense bill, and how the House’s Housing for the 21st Century Act could still deliver meaningful reforms. From streamlined permitting to higher FHA loan limits and modern definitions that encompass modular and prefab, we identify the areas of genuine bipartisan overlap and the sticking points that will require genuine negotiation and a reliable legislative vehicle to support them.
We delve into small-dollar mortgages and the affordability conundrum. Joel explains how points-and-fees adjustments or competent pilots could make sub-$200,000 loans workable again in markets that need them most. Credit unions are well-positioned to lead in this area, filling the gap where commission-driven models often overlook low-balance loans. Tie that to modular and prefab growth, and you get a practical pathway to expand entry-level homeownership without compromising safety and soundness.
Then we turn to the CFPB leadership extensions, legal battles over funding, and what lenders should watch while the courts weigh in. The Bureau’s agenda isn’t disappearing, but timing and intensity may swing. We conclude with the January shutdown odds, what a partial funding landscape means for agencies, and a forward look at 2026: renewed GSE reform efforts, potential stock market movements, and a push for federal-level AI rules to avoid a 50-state patchwork. Throughout, we share practical steps for credit unions and mortgage teams to stay resilient with strong cash management, clear member communication, and model governance as AI matures.
If this helped you make sense of a chaotic policy map, follow the show, share it with a colleague, and leave a quick review so others can find it. What housing reform do you want Congress to prioritize next?
Sponsored by Loan Vision.
The views and opinions expressed in this podcast do not necessarily reflect the views or positions of Acuma, its board of directors, its management staff, or its members. The podcast discussion presented is conversational in nature and for general information only.
SPEAKER_02:This is Activism On Point Podcast. On today's episode, we'll get an update on the road to housing, we'll talk about the CPB, and maybe hint at a possible shutdown in late January. But before we get to our episode, just a quick word from our sponsor.
SPEAKER_00:This episode is being brought to you by LoanVision. Is your credit union looking to turn your accounting department into a profit driver? Loan Vision can help. Our platform delivers real-time data, low-level insights, and automation to streamline workflows and improve control over financial performance. Transform your cost centers into revenue generators by equipping your team with the tools needed to better serve your members. And don't miss our monthly webinar series where we share key strategies and best practices to help credit unions optimize their mortgage operations. Register today at www.lonevision.com under our upcoming events page.
SPEAKER_02:Hello, welcome to Acton Point Podcast, a series folks on sharing the stories of people who are making a positive impact in the credit union mortgage industry. I'm your host, Peter Benjamin. Today I am joined by our resident expert, our first timer, Joel Horberman, policy analyst with Brownstein. Joel, how are you doing? Welcome to the pod for the first time.
SPEAKER_03:And what's what's going on? Doing well, Peter. Thanks so much for having me on. Really excited to join the pod.
SPEAKER_02:Love it. Love it. Now, this is you know, you know, what's what's the saying? You know, um, longtime listener, first-time caller. Um excited to have you here. Um, for those that don't know, Joel is really, you know, the the brains behind a lot of our Washington and policy insights. Uh, so it's it's really good to have him on to kind of give you the the latest update as we wrap up the year. All right, Joel. So let's kind of go down that list that we talked about pre-recording, pre-podcast, uh, several topics I think uh a lot of our our listeners are really interested in. So, first up, you know, one of my favorite topics, let's let's start with road. So, what's going on with the road to housing?
SPEAKER_03:Yeah, so I mean that is really kind of the big, the big thing in housing policy right now. Um, I think as noted in in some of the prior podcast episodes, um that the Road to Housing Act was attached to the fiscal year 2026 Defense Bill, which is one of those policy pieces that pretty much every single year it moves. I think this is on pace to be the 65th straight year. Um, and so the Senate had it in there. Um, the House version did not. Over the last couple of weeks, there was a conference process to kind of decide what will make it in the end. And unfortunately, the Road to Housing Act ended up falling out. Um, one of the main sources of opposition was um, you know, on the House Financial Services Committee, they really had not yet put together their housing package. Um, they really wanted to have some input into the process. The government shutdown in October really kind of slowed down the House Financial Services uh kind of effort on housing. They were supposed to have a hearing and then a markup in October and kind of have everything ready. Those plans were delayed. They had to push back to December. And so uh just in a couple of days from the recording of this podcast, they are planning to mark up a bill called the Housing for the 21st Century Act. And so looking through both that bill and the Road to Housing Act, there are roughly 10 provisions that are the same. So they have both House and Senate buy-in. And um there are also some that are, of course, different. The Road to Housing Act um has, you know, some provisions on appraisers, a points and fees provision that would allow the CFPB to um, you know, kind of encourage a little bit more small dollar lending. The House bill takes a little bit of a different approach using kind of a pilot program that could be put in place. And so uh, you know, the House bill hasn't been marked up yet, but we'll kind of see in this last week in session how that goes. It's expected to receive broad bipartisan support since it has buy-in from both Chairman Hill and ranking member Waters. And so heading into the new year, the package could be considered on the floor if it makes it out of the committee. And ultimately, um for something to get signed into law, there's gonna be one. There needs to be bipartisan or sorry, bicameral coordination between the House and Senate on a lot of these housing pieces, as well as a vehicle for it to ride on. There's a chance that it could go standalone, but things ride typically a lot easier if if you know it's attached to a spending bill or something like the defense bill.
SPEAKER_02:All right. So, you know, question. So you obviously have the the house bill, which is dropped on Thursday, you know, Hill and Waters are behind it. Um now, do you see at any point in time that when you have these two, these two bills, you know, road and I think you said um housing in the 21st century, um, do you just see like the end product just being married up, you know, the two kind of being combined when it's all said and done, and that's what ends up going through? Or are they gonna be two independent bills that kind of have to fight it out for who for supremacy?
SPEAKER_03:Yeah, so I think it's really gonna be a mix of the two. You know, the the House rejected the Senate's bill, the Senate isn't gonna take the House's bill. I mean, it's it's a very good sign to see that there are some provisions that overlap between the two. You would think that those would have a good chance of getting through, um, some of which are a provision to kind of alter the permitting process for small housing projects, increasing FHA loan limits, and making some changes to the definitions of um manufactured housing to include modular and prefab. So those pieces and some more, like that's a great starting point for you know a kind of compromise package that'll need to be hashed out. Um, but yeah, there are some pieces like HUD's home program. Both bills take kind of a separate approach, which will need to be reconciled. And there are some provisions that um will definitely need to be to be hashed out before you know something is agreed upon in in both chambers.
SPEAKER_02:Now, do you like using your crystal ball? I mean, obviously, it we you know, here we are. I mean, you know, this is you know, the the house bill at this point in time is, you know, by the time we get to it, you know, by the time this podcast is released, it's only gonna be about two weeks old. Um but did the the house bill include, and keep in mind, I haven't looked at it yet, but has it included you know the small dollar amount lending and kind of clarifications around that? You know, because you know that was one thing that I was particularly watching because was the small dollar amount was being established at what 200,000? You know, and and the reason why I was look really looking at that is because I think you credit unions can really fill that void in that small dollar amount lending, whereas others might be hesitant to do it. Like, you know, oftentimes when you have when you pay you know a loan officer based off of their commissions based off a dollar amount, you know, that$200,000 loan is really just going to get ignored, right? They're they're they're gonna go out for that$500,000,$600,000 and kind of just push that$200,000 loan amount off to the side. And so, you know, getting getting that portion of road through, and even if it's part of you know the housing in the 21st century, you know, that right there is a niche that I I personally see credit unions really mastering and capturing and people coming to credit unions more than the any other lender. So just I I know I kind of just rambled a bit, so I apologize, but was that that small dollar amount loan or limit included in that that house bill?
SPEAKER_03:Yeah, so unfortunately it was not included. Um there was an additional small dollar mortgage provision that would have that would establish like a pilot program on ways that um you know there could be direct loans to borrowers for FHA loans, as well as some support for closing costs, which is title insurance. Um and just thinking that like both the House bill and the Senate bill have that bipartisan buy and that bipartisan support, I wouldn't think that any bill or any provision that's not included in one couldn't eventually end up in the final package. Um this will really need to be hashed out between the leadership in both the Senate Banking Committee and House Financial Services Committees. And you know, I I don't think anything's really off the table, even if one provision wasn't included in the other bill.
SPEAKER_02:Yeah, it's good to know. I mean, because I mean if you're gonna talk, you know, this is just me, me talking, but it you know, if if you know lawmakers, policymakers, if if they're going to truly talk about you know redefining you know manufactured housing to include modular and what it actually means to originate those types of loans, and if that's part of the focus, you you really have to include that small dollar amount provision in there as well, because they really go, they're one, I they're almost one and the same, in my opinion. Now, you know, you you could argue on the opposite side that they're totally different, but you know, if we really are going to solve the affordability crisis in this country, giving lenders, not just credit unions, but lenders in general the ability to originate a loan at 200,000 and not have to have so much concern or about high costs. I mean, that that's extremely important, right? For us to kind of move this needle forward on expanding homeownership. Anyways, uh, I'll come off my soapbox. Let's kind of move on to another one of my favorite topics. I'm so happy you proposed this.
SPEAKER_03:You know, what's going on with the CPB? Yeah, it is a it's a very common question these days. There has been so many different twists and turns throughout this year. And so just most recently, one thing that we're watching just kind of on the leadership side of things, the administration nominated a uh senior OMB official who has a background in natural resources and energy policy, named Stuart Levenbach, to serve as the CFPB director in around mid-November, which caught kind of everyone by surprise. Um, and you know, this this happened as the acting CFPB director Russ Vaught. His term is set to expire. Like he wouldn't be able to serve unless someone else was nominated. It's part of uh the Federal Vacancies Reform Act. And so the CFEB pretty much confirmed that this nomination was just put in place to ensure that acting director vote can continue to stay on. And I believe that's until about May or June of 2026 that this kind of procedural move will allow him to continue on. And so, you know, now that that kind of leadership question is addressed, there is still the very big question over the CFPV's funding. Of course, um the agency is continuing to rely on a DOJA legal opinion that argues that any funds it receives outside of Federal Reserve profits or combined earnings uh are just generally unlawful. And so the in a recent CFUB court filing, they said that they expect to remain in operation through the new year. But just over the last couple of weeks, the Federal Reserve has recently returned to profitability, which uh could sort of complicate or maybe undermine some of the Bureau's um arguments that it won't be able to operate, um, that they will have to kind of take some of these funds. And so, I mean, the courts right now are really the place to watch uh to kind of learn what what the future of the Bureau is gonna end up being. Um there really haven't been too many developments in the last couple of weeks, but um, of course, the CFPV has a pretty pretty big agenda um that was released just a few a few months ago. And so um, you know, this kind of legal question overhang is really kind of at the heart of what's going on, and and really, yeah, looking at the court dockets, seeing what seeing what happens is really kind of the the key right now.
SPEAKER_02:You know, this one's interesting because it it's out of you know all the topics we we commonly talk about, right? This one, I don't want to say it reads like a soap opera, but it it has that much drama behind it, right? And it's so far reaching that you almost have to kind of take a step back and and and question in not so much in a bad way, but you have to question, okay, well, what's really gonna happen next? Because you know, we've talked about in the past with you know with with you in conversation, but and you know, not so much on this recording, but you in conversation. We've talked about it with AM, we talked about with Zach, we talked about with Leah. You know, you can strip down the CPB all you want, right? And you can get to a point where you have a director over uh a two-person, you know, bureau, but at any point in time, especially under a new administration, this thing, this this animal could come back you know tenfold and really uh change things up you know in a different way. So it's really just fascinating to watch how they're they're almost uh stripping those the CPB down to really represent almost nothing, but it's still like the you know, the two hundred, you know, the the 2,000 pound gorilla that you're just trying to cage. That's all you're trying to do, right? I think that's probably the best analogy. Um, you can cage it, but eventually, you know, it's gonna get loose, I guess. I don't know. So very fascinating on CPB. Just really just fascinating. Um and I like how they it's so just a question on on the the person who they have nominated for director of the CPB, this person from uh OMB. Is this just another one of those ploys to kind of keep VOT in control? And eventually this person's gonna withdraw and you're gonna go we're gonna go through this process again, and just we're almost like kicking the VOT can down the road, just keeping him in control.
SPEAKER_03:Yeah, so I believe under the Federal Vacancy Reform Act, not 100% certain on this, but I think there can only be two nominee withdrawals to keep in an acting. Interesting. Yeah, so the first one, of course, was Jonathan McKernan, who was nominated back in May 2025, and then now the second one is is Levinbach. Um, of course, the the Senate banking has no intentions of holding a nomination hearing for that nomination. And so I think it if if the Bureau is still funded and and has stuff going on in kind of late spring 2026, early summer, they could there could be a potential new uh new nominee, but um that's that is that is very far in the future for Edna. Very far. Very far.
SPEAKER_02:All right. I almost feel silly asking about this one because I feel like we just went through this process of talking about it a lot, but here we are, January 30th is right around the corner. You know, what is going on with a potential government shutdown, the likelihood, et cetera, et cetera, et cetera. I mean, what's what's well give give us an update on any possible shutdown that could happen in January?
SPEAKER_03:Yeah, so since the continuing resolution that ended the longest shutdown in in US history, which took place in uh November, there really has not been much of or any progress on fiscal year 26 appropriations in Congress. There have been kind of talks in the Senate of getting kind of a package of five of the 12 required appropriations bills to get through. As of now, it's really been all talk. Nothing has really happened. This the House and Senate also remain very far apart on their kind of top line spending numbers. And so just looking at the calendar, we're pretty much done with 2025. In January, the House and Senate will only both be in session when they're Both chambers are there for two weeks, and then the House will be in, and then the Senate will just be in. And so there's there are very few kind of legislative days ahead before this January 30th deadline. And so we we're probably looking at another continuing resolution. And honestly, probably a lot of the same sort of dynamics will be at play um between potential shutdown coming up and also the one that happened from September 30th all the way to mid-November. And just one caveat that's a little bit different that might be a little bit different this time. Along with the continuing resolution that passed in November, three of the 12 fiscal year 26 appropriations bills also were signed into law. And so those cover like the agricultural, agriculture department, veterans affairs, um, and a few others. And so that accounts for roughly 10 to 11 percent of federal funding. And so that will that would remain in place if if there is a shutdown, as well as SNAP would be fully funded. So, you know, that was a big issue in during the shutdown uh in in October, November, that that would be off the table um if if there were to be a shutdown in in February.
SPEAKER_02:Interesting. All right, so I think that does bring up a good you know transition to uh you know the final topic, you know, in addition to potential, you know, early 2026 shutdown. Again, I I stress the word potential. What else kind of can you hint at uh when when we look at the year ahead for 2026? Um give us some insight as to what we can expect.
SPEAKER_03:Yeah, so things will look a little bit different there. Of course, the midterms are coming up in November 2026, primaries are gonna start to begin in uh winter and and spring. So kind of political partisan dynamics might change a little bit as you know, just governing will get tougher with the election coming up. And just also on the calendar for all of October, there's not gonna be half-sort for Senate in session. Um, and so it just makes things a little bit tougher. And so just looking through that context, some things we're we're watching, you know, GSC reform, GSC privatization is of course a really, really big topic. Um the administration was kind of weighing an IPO, Fanny and Freddie, uh, of some small portion of their stock, which didn't happen in 2025, but that is something that could, you know, certainly could happen next year. And also the the House Financial Services Committee is expected to you know begin efforts looking at GSE reform um in the first quarter of this year. So that's certainly something to keep an eye on. And one other thing I thought I'd mention is um AI. Of course, everyone is talking about artificial intelligence right now. Uh President Trump in early December released an executive order seeking to limit state regulation of AI, arguing that we need a single framework. We can't deal with 50 different states regulating AI. And so it'll be interesting to see, you know, if it withstands potential legal challenges, if Congress will seek to legislate on this issue to make kind of the executive order permanent. And uh just conversation about AI in general is really likely to heat up. It's become it was a topic in the 2025 off-year elections on data centers, energy policy, potential restrictions on AI. And I think that's just going to continue to become more and more of an issue as we as we go forward.
SPEAKER_02:Yeah, I'm I'm glad you mentioned that. It's because you know, it's most certainly on the minds of a lot of our members, you know, the direction of AI, you know, another fascinating topic. You know, AI really evolves faster than you know the politicians can sit down to write the opening paragraph to any potential bill. And you know, it would be good to get some direction, you know, especially from a lending standpoint, as to you know, how we can approach this. But but also, I mean, we we I think for the sake of our members, you know, we we continue to suggest that they adopt AI um as a way to make things more efficient, not replace but improve efficiency. Um and so this is a good example of something that is as far reaching, impacts a lot of different industries um that you know a lot of our our members are really keeping, I don't want to say close eye, but they're definitely paying attention to. Now, you know, as we also, you know, you mentioned you know in 2026 midterm elections. I mean, at that point in time, do you feel like we get a good sense of uh the new direction of the of the House and Senate? Um, yeah, obviously midterm, and obviously we'll we'll have you know the towards the end of the year elections, but do you have at that point in time, do you see any type of change? But also, I guess the second part of that is you know, by the midterms, we we should get a good sense of who the Democratic nominee is for the next presidential election, right? Or who might be considered in the running, right?
SPEAKER_03:Yeah, yeah, I think directly kind of after the midterms, it'll the 2028 election will pretty much begin in earnest, regardless of of what happens in the midterms. Um there's also that kind of lame duck window when the 119th Congress will be turning into the 120th Congress, where there can be some bipartisan deal making and and you know the opportunity for things to to go through. But um, yeah, I think pretty much directly directly after the midterms, we will we will enter the 2028 race, which will be uh quite a time.
SPEAKER_02:Yeah, that that that one's gonna be very interesting. Uh I will say that. Um but anyways, Joel, thank you very much for your time today. Truly do appreciate it. Enjoyed the conversation. Um as always appreciate everything that you and the rest of the Brownstein team does for Acima and our members. So again, thank you very much. Thanks so much, Peter. Of course. And to close out, thank you again to Lone Vision for sponsoring today's episode. And to all of you, we know your time is valuable. Thank you for tuning in to the latest episode of Acuma's On Point Podcast. We hope you enjoyed it. Until next time, be well, my friends.
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