NHC mourns the passing of Mike Gill

NHC is incredibly saddened by the passing of Mike Gill, Senior Vice President, Capital Markets at the Housing Policy Council (HPC) and friend to many of us in Washington, DC. Mike previously served with the U.S. Commodity Futures Trading Commission under Presidents Obama and Trump, as well as three terms as an appointee to the DC Board of Elections. Remembered by friends and former colleagues as a down-to-earth, fair-natured person, Mike dedicated his time to pro bono work representing undocumented minors in the court system.

“It’s a tragic loss that we cannot even imagine. Our prayers are with his family and all his friends, of which there are many,” said David Dworkin, NHC President and CEO.

HPC President Ed DeMarco recognized Mike’s passing in a statement.

“We admired Mike personally and professionally; he was an outstanding lawyer, public servant, colleague, and community member, giving his time and talent in service to his country, his city, his church, and his community. More than that, Mike was a devoted husband and father, who adored his wife and children,” said DeMarco. “We also voice here our frustration and anger at the continued stream of violence that is damaging our community and subjecting countless families like Mike’s to unbearable loss. This cycle of violence must be stopped. HPC will miss Mike’s presence in our lives.”

Our deepest sympathies are with Mike’s family and our friends at HPC.

Banking industry groups sue regulators over CRA

A group of seven banking industry trade associations, led by the American Bankers Association (ABA), the U.S. Chamber of Commerce, and the Independent Community Bankers of America, filed a lawsuit against the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency for allegedly exceeding their statutory authority through the recently updated Community Reinvestment Act (CRA). The CRA’s original intent, when enacted in 1977, was to address redlining concerns and its impact on disinvestment in minority communities. At the time, multiple housing and racial equity organizations supported the final CRA rule. 

Last week, National Community Reinvestment Coalition President and CEO Jesse Van Tol issued a statement criticizing the suit. “This is a short-sighted move by a relatively small but well-resourced group of banks inside the trades who want a do-over even though regulators made compromises that reflect portions of the feedback they got from both bankers and activists, and which left neither group entirely happy,” said Van Tol. 

“We strongly support and appreciate the goals of the Community Reinvestment Act, but in this exceedingly complex rulemaking, the agencies have created a CRA evaluation framework that unlawfully exceeds what Congress authorized and fails to recognize banks’ demonstrated commitment to fully serving their communities,” said ABA President and CEO Rob Nichols in a press release. “Even more troubling, the Final Rules risk undermining the very goals of CRA by creating disincentives for banks to offer certain products or lend in geographies outside of their branch network. Given federal regulators’ failure to respond to public comments and fix significant flaws in this rulemaking, we were left with no choice but to reluctantly file this lawsuit.”

NHC wrote a comprehensive letter to the regulators during the comment period regarding the changes and specifically supported efforts to adjust the rule in response to the rise of online banking. NHC is supportive of the final rule after the changes.

“The final rule is the product of years of work to bring CRA into the 21st century,” said David Dworkin, President and CEO of NHC. “This regulation is the result of more than a decade of consultations with community and banking groups and years of work by regulators to get it right. They got it right.” Dworkin continued, “While not everyone is going to like everything in the final rule, it succeeds in significantly improving the status quo, and leaves room for ongoing clarification and adjustment over a 24-month implementation period.”

Bipartisan legislation would address predatory trigger leads

U.S. Reps. John Rose (R-Tenn.) and Ritchie Torres (D-N.Y.) introduced bipartisan legislation addressing unwanted trigger leads. The Homebuyers Privacy Protection Act would allow consumers to opt into sharing their information with various entities when applying for a mortgage rather than automatically sending their credit reports to lenders. Currently, consumer reports are often immediately shared once a lender pulls a consumer’s credit, leading to frequent and sometimes predatory calls from lenders that consumers find aggressive or outright intrusive. The bill would prohibit reporting agencies from providing a trigger lead unless a consumer opts explicitly into hearing from competing agencies.

“Trigger leads exploit consumers' financial inquiries, turning them into commodities sold without consent. We must empower homebuyers, not bombard them with predatory calls," said Torres. "This bipartisan legislation takes a crucial step in safeguarding consumer privacy and choice in the mortgage process."

The Mortgage Bankers Association released a statement in support of the reform. “MBA continues to be a fierce proponent for legislative reforms that stop the abusive use of mortgage trigger leads while preserving their value in appropriately limited circumstances during a real estate transaction,” the release stated. “This updated House companion bill harmonizes with the MBA-supported trigger leads bill in the Senate – introduced in December 2023 – and furthers the momentum for legislative action on this issue.”

Freddie Mac offers $2,500 credit for downpayment, closing costs   

Freddie Mac announced it will now offer a $2,500 credit for low-income homebuyers earning 50% of the area median income or less for downpayment and closing costs. The credit goes into effect on March 1 and will be available across Freddie Mac’s Home Possible and HFA Advantage mortgage products. The initiative intends to expand the possibility of homeownership to very low-income families who qualify for Freddie Mac loans. The announcement comes a week after Fannie Mae issued a Lender Letter instituting a temporary $2,500 credit on its HomeReady mortgage.

HUD awards nearly $20 million for Native communities

HUD allocated nearly $20 million to 11 communities through the Indian Community Development Block Grant (ICDBG) program. Communities can use these funds on infrastructure, community buildings, housing rehabilitation, land acquisition, and economic development, focusing on supporting American Indian and Alaskan Native families in designated areas. In June 2023, HUD initially made $75 million available to Tribes through ICDBG for community development, with additional awards pending completion. 



“This critical funding will help Tribal Nations meet the needs of their communities and build towards their futures,” said HUD Secretary Marcia Fudge. The Department underscores its commitment to ensuring the delivery of ICDBG funds to Tribal communities. “We continue to meet emerging needs in Indian Country with this funding, and there is no better investment than supporting Tribes to develop innovative solutions for complex challenges,” said Richard Monocchio, HUD Principal Deputy Assistant Secretary for Public and Indian Housing.