On the Hill is NAMB's bi-weekly read on what's happening in Washington and why it matters to mortgage brokers.
Each issue cuts through the noise to bring you the federal policy, legislation, and regulatory moves shaping your business, along with the context and action items you need to stay ahead.
Brought to you by the National Association of Mortgage Brokers, the voice of the broker community since 1973. |
Mortgage rates broke 7% for the first time this year, FHA opened the door to the new appraisal format while Fannie and Freddie gave lenders more time to adopt it, and the CFPB's next director cleared committee. One piece of good news too: the October 1 shutdown was averted. Here's what brokers need to know. |
Lead Story: Mortgage Rates Break 7%, the Highest of 2026 |
In the aftermath of the Fed's September 16 rate hike, mortgage rates climbed sharply. Freddie Mac's 30-year fixed averaged 7.03% as of September 24, up from 6.95% the week before and well above the 6.30% of a year ago. It is the highest level of 2026.
The move tracked a surge in the 10-year Treasury, which pushed toward 5.1%, around a 19-year high, on sticky inflation, bond-market worries, and the Fed signaling that more hikes may be coming. Daily rate trackers had pricing even higher, in the 7.1% to 7.2% range by late September.
The takeaway for brokers: affordability just got materially harder heading into the fall. Reset client expectations, revisit float-versus-lock conversations, and keep a conventional backup approval in play for borrowers who qualify both ways.
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FHA opens an Optional Broad Production Period for UAD 3.6
FHA announced (FHA INFO 2026-23) that lenders may now voluntarily submit FHA appraisals in the modernized Uniform Appraisal Dataset 3.6 format and the redesigned Uniform Residential Appraisal Report through FHA's Electronic Appraisal Delivery portal. The move puts FHA into broad production on an optional basis, aligning it with the GSE broad production period that has run since January 26, 2026, where a single dynamic report replaces the legacy forms such as the 1004 and 1073.
Use remains optional for FHA business, and FHA has not set a mandatory date, though the Fannie Mae and Freddie Mac mandate for conventional loans takes effect November 2, 2026. This is the natural next step in the transition NAMB has been preparing members for. Now is the time to confirm your appraisal vendors and software are UAD 3.6 ready so the switch does not slow a closing.
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At Fannie Mae and Freddie Mac
GSEs grant a temporary exception to the November 2 UAD 3.6 mandate
On September 30, in coordination with the FHFA, Fannie Mae and Freddie Mac announced a one-time temporary policy exception for lenders that cannot complete their UAD 3.6 implementation by the November 2, 2026 mandate (Fannie Mae Lender Letter LL-2026-08). Importantly, the mandate itself is not changing. Lenders that are ready by November 2 remain compliant. Those that are not must request an exception from each GSE, which is not automatic.
Approved lenders may continue submitting legacy UAD 2.6 appraisal reports through May 19, 2027. There is a catch worth flagging: beginning March 1, 2027, UAD 2.6 reports submitted under an exception lose certain appraisal representation-and-warranty relief, which adds risk, so the GSEs are urging lenders to finish implementation before then. Mandatory UAD 3.6 use for all new submissions begins May 20, 2027, with the legacy format fully retired after June 27, 2027.
For brokers: this is real relief for lenders still mid-transition, but it is conditional and must be requested. Confirm where your wholesale and correspondent partners stand, since their readiness determines which appraisal format your loans require.
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Johnson's nomination advances out of committee
On September 17, the Senate Banking Committee voted 13 to 11 along party lines to advance Brian Johnson's nomination as CFPB director to the full Senate, where he was placed on the Executive Calendar. As of late September, leadership had not scheduled a floor vote, and the Senate's pre-election recess begins around October 5, so the window is tight.
Mark Paoletta remains acting director in the meantime, and the Bureau's paused workforce reduction stays frozen, tied to Senate action on the nomination. For brokers, LO compensation and RESPA servicing reform remain the rulemakings to watch under whoever leads the agency.
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On Funding
No shutdown: government funded through December 11
The feared October 1 lapse was averted. Congress passed a continuing resolution in early September, signed into law by the President, that funds the federal government through December 11, 2026. FHA, VA, and USDA loan processing continues normally for now, and the next funding cliff to watch is December 11, not September 30.
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- 30-year fixed: 7.03% (Freddie Mac PMMS, Sept 24), up from 6.95% a week earlier and 6.30% a year ago. The highest level of 2026.
- 15-year fixed: about 6.42% (Freddie Mac, Sept 24).
- 10-year Treasury: near 5.1%, roughly a 19-year high.
- CFPB: committee advanced Johnson 13-11; government funded through December 11.
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What your association is focused on:
- A seat with state regulators: NAMB Chief of Staff Valerie Saunders was appointed as a Member at Large to the Conference of State Bank Supervisors (CSBS) Nonbank Industry Advisory Council for a three-year term, giving the broker community a direct voice with the state regulators who oversee our industry.
- UAD 3.6 readiness: NAMB continues to equip members for the appraisal transition with UAD 3.6 resources, now that FHA has joined the GSEs in broad production.
- Veterans' lending: NAMB's call to action on H.R. 9237 remains live. Section 104 would raise VA home loan fees on other veterans to pay for benefits, and NAMB is urging members to weigh in at namb.org/call-to-action.
- Ongoing: LO comp reform, LLPA reduction, credit report and credit scoring cost relief, flood insurance improvements, and expanded affordable housing access remain NAMB's 2026 priorities in Washington.
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- By Oct 5: whether the full Senate takes up Brian Johnson's CFPB nomination before its pre-election recess.
- Nov 2, 2026: the GSE UAD 3.6 mandate takes effect. Lenders not ready must request a temporary exception to keep using UAD 2.6 through May 19, 2027. FHA's own mandatory date is still to come.
- March 1, 2027: UAD 2.6 reports submitted under an exception begin losing appraisal representation-and-warranty relief, so lenders are urged to finish implementation before this date.
- May 20, 2027: mandatory UAD 3.6 use begins for all new appraisal submissions.
- Pending: FHFA's decision on certain LLPAs, which Pulte has said is coming.
- Now: H.R. 9237 and the VA home loan fee fight. Complete your Call to Action at namb.org/call-to-action.
- Dec 11, 2026: the next federal funding deadline.
- Jan 4, 2027: the condo HOA reserve-funding increase from 10% to 15% is set to take effect, the next front in NAMB's delay campaign.
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