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Committee Hearing Focuses on Housing Supply; No Housing Bills in NDAA

December 9, 2025 

On December 3, the House Financial Services Committee held a hearing focusing on housing affordability entitled Building Capacity: Reducing Government Roadblocks to Housing Supply.

Why it matters: Affordability remains a key issue for voters, and the House has been planning to advance its own housing agenda after the Senate passed the ROAD to Housing Act earlier this fall. 

• The hearing included over 40 housing bills, which sets the stage for further committee action later this month. 
• The National Defense Authorization Act (NDAA) was released over the weekend and does not include housing legislation. The House will likely take up a housing package earlier next year.

The big picture: The hearing underscored broad bipartisan agreement that the U.S. faces a significant housing shortage and that permitting and approval processes need to be accelerated to reduce delays and costs. 

• Republicans, such as Reps. Pete Sessions (R-TX) and Andy Barr (R-KY), focused heavily on deregulation, emphasizing the role of state and local zoning limits, red tape, and what they view as inflation-driven interest rate increases.
• Democrats, such as Reps. Nydia Velazquez (D-NY) and Brad Sherman (D-CA), highlighted the impact of tariffs, labor shortages tied to immigration policies, and fair-housing enforcement rollbacks on rising housing costs. 
• Members from both parties, including Reps. Ann Wagner (R-MO) and Bill Foster (D-IL), expressed strong support for allowing smaller lot sizes and increasing density through duplexes, triplexes, and other “missing middle” housing types, an idea that generated virtually no opposition. 
• There was also notable bipartisan alignment around modernizing manufactured housing, including removing the permanent chassis requirement and expanding access to financing for modular and factory-built homes. 
• Republicans frequently used their time to critique rent control, while Democrats largely criticized recent administration policies. To the good, the overall discussion reflected several areas of meaningful cross-party consensus on supply-oriented reforms.

Go deeper: In the multifamily space, Rep. Monica De La Cruz (R-TX) highlighted the Housing Affordability Act (H.R. 6132) aims to update the FHA multifamily insurance program and asked how these changes would leverage and incentivize private investment to expand the housing supply. 

• Witness Kevin Sears – Immediate Past President, National Association of Realtors – affirmed his organization's support for the bill, explaining the program's outdated limits currently block potential financing for projects and prohibit desperately needed construction. He asserted updating the program would unlock private investment and be a key component in resolving the housing crisis. 
• Julie Smith – Chief Administrative Officer, Bozzuto, on behalf of the National Multifamily Housing Council (NMHC) – concurred, emphasizing construction costs have risen so significantly over the past two decades that many projects no longer qualify under the existing loan limits of programs like 221(d)(4). She argued extending these limits is necessary and added expediting the application process and shortening waiting periods would also greatly improve the program's utilization.

GSE Conservatorship: A few members raised questions about potential action on Fannie Mae and Freddie Mac amid broader discussions of reprivatizing the agencies.

• Rep. Scott Fitzgerald (R-WI) discussed his legislation designed to end the conservatorships of the GSEs by transitioning them into utility-style entities. 
  • He asked how this utility model would strengthen stability in the secondary mortgage market and expand access to affordable homeownership. 
  • Mr. Sears affirmed his support for the utility model, but stipulated three conditions: the 30-year fixed-rate mortgage must be preserved as a bedrock financing option, the government guarantee must be maintained, and any revenue generated must be directed toward housing. He specifically recommended using these funds for public-private partnerships, noting such arrangements could attract ten times the amount of private investment for every federal dollar, potentially infusing trillions of dollars into the housing economy.
• Bill Foster (D-IL) inquired about the potential adoption of the Danish mortgage system as a solution to mortgage lock-in and a replacement for Fannie Mae and Freddie Mac. 
  • Nikitra Bailey – Executive Vice President, National Fair Housing Alliance – responded by emphasizing the success of the 30-year fixed-rate mortgage in the U.S., describing it as a hallmark product that has expanded homeownership and provided families with financial stability and predictable mortgage payments. 
  • She acknowledged the system has historically excluded many individuals, but she stressed the need to intentionally ensure this affordable product is accessible to all consumers, particularly those on whom the future health of the housing system will depend.

Please contact David McCarthy (dmccarthy@crefc.org) with questions.

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Tennessee Special Election Shows Swing to Dems 

December 9, 2025 

Tennessee’s 7th Congressional District held a special election on December 2, after longtime Rep. Mark Green (R) resigned in July to take a private-sector job. The race drew national attention and major outside spending from both parties.

• Matt Van Epps (R) won with about 54% of the vote, Aftyn Behn (D) finished with around 45%. The winning margin of roughly nine points was far narrower than recent Republican performance in the district.

By the Numbers: Both parties treated the contest as a barometer for 2026 momentum: Republicans saw the closer-than-expected margin as a turnout warning sign without President Trump on the ballot. Democrats touted it as evidence that cost-of-living messaging can make headway even in hard-red terrain.

• Republicans nominated Matt Van Epps, a military veteran and former state official backed heavily by President Donald Trump.
• Democrats nominated Aftyn Behn, a progressive state representative who framed the race around affordability, inflation pressures, and cost-of-living issues. 

The big picture: 

• TN-7 is a deep-red, traditionally safe Republican seat, so Democrats’ over-performance was the storyline. Compared to the 2024 results, the district shifted 13 points toward Democrats, driven by strong turnout in the Nashville-area counties even as Republicans dominated the rural portion of the district. 
• House math stays tight. Van Epps’ win preserves GOP control of the seat and helps maintain a narrow Republican House majority going into 2026. 
• Affordability politics are potent. Behn’s gains were powered by economic messaging—housing cost pressures, inflation, and household affordability—and growing voter dissatisfaction with the governing party.

What they’re saying: 

• Democrats are pointing to these results and recent Democratic victories in the off-year gubernatorial elections in Virginia and New Jersey, as well as other statewide races in Georgia and Pennsylvania, as evidence that their messaging is resonating with voters.
• President Trump’s 38 % average approval rating is also giving Democrats hope.

The bottom line: If Democrats can replicate this type of swing nationwide, that could put 30 seats in play that Republicans won by 13 points or less in 2024. However the 2026 midterms are still 11 months away. 

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New York City COPA Bill Amended

December 9, 2025 

The New York City Council has released an updated version of the Community Opportunity to Purchase Act (COPA) Int 0902-2024 that would mandate a time window to allow qualified nonprofits the right of first refusal on multifamily properties. 

Why it matters: As originally drafted, the broad scope of the legislation would have applied an additional waiting period and processes to every multifamily building in the city. The revised bill narrows the scope, but it could still have a negative impact. 

By the numbers: The bill originally applied to all NYC multifamily with three or more units. The Commissioner of Housing Preservation and Development would have regulatory and administrative responsibility for the program. 

The amended version made the following updates: 

• Multifamily Building Criteria: The waiting periods would only apply to 4+ unit multifamily properties that also are experiencing distress or have expiring affordability protections. The bill lists the specific distress criteria (foreclosure, fine, or safety related), but the regulator would have the power to expand the criteria. 
• Vacant Lots Included: The COPA timelines also would apply to vacant lots zoned for multifamily.
• Time Periods Adjusted: The time periods below can be extended by the commissioner. Overall, the minimum time could lengthen the sales timeline by at least six months. 
  • Owners must file a notice of intent to sell at least five days before listing. 
  • Nonprofits have 45 days to submit a statement of interest. 
  • Interested nonprofits have 90 days to submit a bona fide offer. 
  • The owner must act on the offer within 10 days. If accepted, the nonprofit has 30 days to execute a contract of sale. 
  • If rejected, the owner must still notify the interested nonprofit if another buyer puts in an offer and then gives the interested nonprofit 15 days to execute a right of first refusal.
• Penalty Increased: Noncompliant sales would be charged a penalty of 3% of the sales price. The fine was originally $30,000.

The big picture: While the changes narrowing the scope indicate that the bill was not necessarily on a glide path to enactment, the original legislation has nearly enough councilmembers as sponsors to override a mayoral veto. 

• The national conversation on housing affordability has also encouraged progressive advocates to work on advancing similar bills. 
• CREFC will continue to monitor developments and alert members on any developments.

Please contact David McCarthy (dmccarthy@crefc.org) with questions.

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CRE CLO Update

December 9, 2025

Implementation Update: Collateral Manager Data Report (CMDR)

Since its launch in late October, the CREFC CMDR has gained significant traction. Implementation is progressing smoothly, with several issuers—including Argentic, Bridge Investment Group, Invesco, and Limekiln/MF1—successfully rolling out the report across multiple transactions in Q4 2025 (covering data through September 30, 2025).

Adoption is set to accelerate in Q1 2026, with issuers such as Arbor, Blackstone, Benefit Street, LoanCore, Prime Finance, and TPG scheduled to release reports covering data through December 31, 2025.

Jointly developed by issuers and investors, CREFC estimates the CMDR report is now available for approximately 25% of all CRE CLOs by transaction balance. CREFC expects this standardized, Excel-based tool to cover a majority of outstanding transactions in the near future, significantly enhancing transparency and efficiency within the marketplace.

View the CMDR Template Here

Recap: CRE CLO Issuer/Investor Advisory Roundtable

On Wednesday, December 3, CREFC convened a roundtable dinner for CRE CLO issuers and investors. The event enjoyed robust attendance from industry leaders, including representatives from A10 Capital, Argentic, Citi, Ellington, Goldman Sachs, Greystone, J.P. Morgan, LoanCore, Lument, Prime Finance, Rialto Capital, TPG, and Webster Bank.

The discussion focused on the current state of the CRE CLO market and strategic opportunities to improve market mechanics and broaden both investor and issuer participation. CREFC is very grateful to all that attended this productive evening and look forward to further such events as we move forward.  

Upcoming Event: CRE CLO Investor Reporting Meeting

As part of the CRE Finance Council January Conference, CREFC will host a dedicated meeting to discuss ongoing enhancements to CRE CLO investor reporting. This session is open to all market participants.

When: Monday, January 12, 2026 | 1:00 PM – 2:00 PM

Where: Loews Miami Beach Hotel, 1601 Collins Avenue, Miami, FL

Register for the event here

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CREFC Submits Response to SEC ABS Concept Release 

December 9, 2025 

On December 1, CREFC submitted its response to the Securities and Exchange Commission's (SEC) Concept Release on RMBS Disclosures and Enhancements to ABS Registration.

Although the SEC’s primary focus in the Release was on the RMBS market, we appreciated the opportunity to comment on aspects of ABS registration and reporting regimes.

Most of our recommendations focused on reporting and disclosure requirements applicable to registered conduit CMBS:

• Restore automatic suspension of Section 15(d) reporting obligations for registered CMBS held of record by less than three hundred persons.
• Change the cadence of significant obligor financial disclosures to reduce undue reporting burden.
• Conform the reporting requirements on Schedule AL to existing disclosure requirements in Item 1111.
• Clarify the date of first use of a Registered ABS prospectus described in Rule 424(b).

We also suggested other regulatory improvements that better reflect current market realities:

• Reduce the five-business day waiting period under Rule 15Ga-2 relating to the filing of third-party due diligence reports prior to pricing.
• Revise Rule 17g-5 to remove the requirement that information provided to an NRSRO rating an Exchange Act ABS be posted to a website. (As noted in a previous CREFC Policy & Capital Markets Briefing, on November 12, we submitted to the SEC a 17g-5 Petition for Rulemaking.) 

CREFC welcomes the opportunity to engage with the SEC on its work to rationalize the ABS regulatory framework and better align it with today’s markets. We also note that the Concept Release is likely the opening phase of a longer rulemaking effort.

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Prudential Regulator Hearing Highlights Bank Capital Reform

December 9, 2025

On December 2, the House Financial Services Committee (HFSC) held a hearing titled, “Oversight of Prudential Regulators.” 

Committee members stressed the need to tailor prudential standards, index regulatory thresholds to inflation, and reevaluate capital and leverage requirements. Witnesses confirmed they are reviewing the entire capital framework and exploring efforts that promote indexing and simplification.

Witnesses included the following top financial regulators:

• Michelle Bowman – Vice Chair for Supervision, Board of Governors of the Federal Reserve System
• Jonathan Gould – Comptroller, Office of the Comptroller of the Currency (OCC)
• Kyle Hauptman – Chairman, National Credit Union Association (NCUA)
• Travis Hill – Acting Chairman, Federal Deposit Insurance Corporation (FDIC)

Bank capital requirements featured prominently during the hearing, with Vice Chair Bowman continuing to voice support for tailoring bank regulations based on institutional size, complexity, and risk. 

• In response to HFSC Chair French Hill’s query on whether Congress should statutorily mandate periodic reviews of bank asset-based regulatory thresholds, Bowman agreed that indexing is a critical component of the regulatory framework.
• Bowman also shared that the Fed is conducting a comprehensive review of its entire regulatory framework to determine if the established categories remain fit for purpose.

Basel III proposal

• HFSC members asked Bowman if the prior Basel proposal’s changes to the p-factor were excessive. The p-factor is a key component in measuring capital requirements for securitizations and the proposed changes were one of CREFC’s main concerns with the previous proposal.
• Bowman explained that the regulatory agencies are developing the new Basel proposal from a risk-focused, bottom-up perspective:
  

• She also affirmed that the banking agencies’ goal is to create a rule consistent with the 2017 Basel agreement, ensuring it does not go beyond the scope of the agreement unless it is to the benefit of U.S. institutions. She also noted that a capital neutral outcome is not necessarily the goal of the regulators.

What's next: CREFC is closely monitoring regulatory developments and looks forward to commenting on the forthcoming Basel III proposal.

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