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. |
The Fed raised rates for the first time since 2023, veteran foreclosures took center stage on Capitol Hill, and the CFPB nomination reached a committee vote. Here's what brokers need to know. |
Lead Story: The Fed Raises Rates for the First Time Since 2023 |
A hawkish turn under a new chair. On September 16, the Federal Open Market Committee raised its benchmark rate by 25 basis points to a target range of 3.75% to 4%, the first increase since July 2023 and the first decision under new Chair Kevin Warsh. Updated projections showed a strong majority of officials, 16 of 18, expecting at least one more hike later this year.
Why it matters for brokers: the mortgage read-through is direct. The 30-year fixed had already climbed to about 7.19%, up roughly 38 basis points since Warsh's hawkish Jackson Hole remarks on August 28 and more than a full percentage point from a year ago. Persistent inflation, pushed along by the Iran conflict and energy prices, is the driver, and Treasury yields have surged with it.
The takeaway: the easing many hoped for this year is off the table for now. Set client expectations accordingly, and revisit any float-versus-lock conversations in your pipeline.
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Veteran Foreclosures Take Center Stage, With NAMB at the Table |
NAMB brought the broker voice to Capitol Hill. On September 16, the Democratic members of the House Veterans' Affairs Committee, led by Ranking Member Mark Takano, held a roundtable titled “The Veteran Foreclosure Crisis: Facing Challenges and Finding Solutions in the Second Trump Administration” in the Cannon House Office Building. NAMB board member Jeff Wilson was invited and participated, bringing the broker perspective to a discussion at the heart of NAMB's veteran-lending advocacy.
The issue: the roundtable focused on the gap left when the VA ended its Servicing Purchase (VASP) program in May 2025 and the slow standup of its replacement. The VA Partial Claim Program, authorized by PL 119-31, the VA Home Loan Program Reform Act, launched June 15, 2026, but servicers are not required to have it live until November 28, 2026. Members pressed on what happens to veterans forced to refinance into higher rates before the partial claim became available, the staffing and financial footing of the VA Loan Guaranty office, and the authorities PL 119-31 still lacks.
The stakes: more than 10,000 veterans have lost their homes since VASP ended, with tens of thousands more in the delinquency or foreclosure pipeline. This is the same veteran-lending fight behind NAMB's opposition to the VA home loan fee increases in H.R. 9237. |
Johnson's nomination reaches a committee vote
The Senate Banking Committee held an executive session on September 17 to vote on Brian Johnson's nomination as CFPB director. If the committee reports him out, the nomination heads to the full Senate, where the question becomes whether leadership schedules a floor vote before the Senate's October 5 pre-election recess. Mark Paoletta remains acting director in the meantime, and even if the Senate confirms Johnson, he would not take over until the appointment is completed and he is sworn in.
For brokers: this still sets the pace on LO compensation and RESPA servicing reform, both long-standing NAMB priorities.
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Still waiting on a confirmed director. Mark Paoletta has served as acting director since Russell Vought's authority expired August 1, and nominee Brian Johnson is still awaiting a Senate floor vote as Congress returns from recess.
The Bureau's paused 2026 workforce reduction, and the pace of LO compensation and RESPA servicing reform, all hinge on his confirmation, both long-standing NAMB priorities.
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- Fed funds target: 3.75% to 4.00%, after a 25 basis point hike on September 16, the first increase since 2023.
- 30-year fixed: about 7.19%, up roughly 38 basis points since the August 28 Jackson Hole speech and more than a full point from a year ago. (Freddie Mac PMMS)
- The dot plot: 16 of 18 Fed officials now project at least one more rate increase before year-end.
- What's driving it: elevated inflation tied to the Iran conflict and energy prices, and rising Treasury yields.
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What your association is focused on:
- September 16: NAMB board member Jeff Wilson represented the broker community at the House Veterans' Affairs Democratic roundtable on the veteran foreclosure crisis, reinforcing NAMB's message that veterans need a working safety net, not new costs.
- 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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- September 30: the federal funding deadline. A shutdown would slow FHA, VA, and USDA loan processing, bottleneck IRS and Social Security verifications, and could stall closings that require National Flood Insurance Program coverage. Build extra time into pipelines just in case.
- Before October 5: whether the full Senate takes up Brian Johnson's CFPB nomination ahead of its pre-election recess.
- Still 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.
- January 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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