» Spring 2025 Regulatory Priorities

Back To Compliance Digest

Spring 2025 Regulatory Priorities

September 6, 2025

The Trump Administration has released the Spring 2025 Unified Agenda, outlining regulatory priorities across federal agencies for the coming year. While the projected publication dates often shift, the Agenda provides valuable insight into near-term policy directions. For mortgage professionals, several developments from HUD, VA, and the CFPB warrant close attention.

1.Department of Housing and Urban Development

HUD’s upcoming rulemaking reflects an emphasis on modernizing housing standards and refining existing program requirements. The agency has indicated plans to revisit manufactured housing regulations, including proposals to update the definition of a chassis and allow multi-unit manufactured homes to qualify for FHA insurance. These changes could expand access to affordable housing options while also aligning HUD’s standards more closely with today’s market realities.

Another significant initiative involves downpayment assistance programs. HUD is preparing to move away from prior policy letters and instead adopt a formal rulemaking process. This shift will bring greater clarity and legal weight to the rules governing DPA programs, which have long been a point of contention between lenders and regulators. In addition, HUD is expected to streamline claims procedures, revise conveyance restrictions, and eliminate the current 90-day resale limitation, signaling an effort to reduce administrative burdens while maintaining program integrity.

2.Department of Veterans Affairs

The VA’s regulatory agenda is relatively limited compared to HUD and the CFPB, but there are still important developments to note. Notably, the Agenda does not reference the implementation of the newly authorized VA partial claim program, which many in the industry had anticipated seeing this year. That absence leaves some uncertainty about the timeline for rolling out this borrower relief option.

The most concrete action item from the VA is a final rule scheduled for December 2025 that will update loan guaranty reporting requirements and clarify defenses available to lenders in the event of a partial or total loss of guaranty. The rule is designed to modernize VA’s reporting standards and leverage industry-standard datasets, which should ultimately support more efficient operations and better alignment between the VA and mortgage lenders.

3.Consumer Financial Protection Bureau

The CFPB’s section of the Unified Agenda carries the most immediate implications for mortgage brokers and loan originators. The Bureau has placed Loan Originator Compensation (“LO Comp“) at the top of its priorities. Following clearance from the Office of Management and Budget in June, the CFPB is preparing to release an Advance Notice of Proposed Rulemaking (“ANPR“) that will solicit industry feedback on whether to rescind all or parts of the discretionary provisions of the current LO Comp rule.

This is a significant development because the ANPR will set the stage for a possible proposed rule that could reshape compensation practices across the mortgage industry. Stakeholders should be prepared to participate in the comment process, as the Bureau is specifically seeking insight into the practical impact of rescinding portions of the existing rule. Although the estimated publication date is July 2025, the clearance from OMB suggests the notice could be published sooner.

In addition to LO Comp, the CFPB is also focusing on mortgage servicing. The Bureau is reviewing discretionary RESPA servicing provisions and intends to finalize a streamlined servicing rule by December 2025. At the same time, the CFPB is considering rulemaking under the Equal Credit Opportunity Act to clarify compliance obligations for lenders. These initiatives reflect the Bureau’s broader effort to reduce compliance ambiguity while strengthening consumer protections.

4.Why This Matters for Mortgage Professionals

The Spring 2025 Unified Agenda underscores how regulatory changes on the horizon could directly impact mortgage operations, from origination and compensation structures to servicing practices and product eligibility. For mortgage professionals, the key will be staying proactive. Preparing for the CFPB’s LO Comp ANPR, monitoring HUD’s evolving approach to manufactured housing and downpayment assistance, and planning for VA’s updated reporting standards will help position companies to adapt smoothly as new rules take shape.

While the timing of regulatory actions is always subject to delay, the policy direction is clear: agencies are prioritizing modernization, affordability, and closer oversight of core mortgage processes. Firms that anticipate these shifts now will be best prepared to maintain compliance and stay competitive in an evolving landscape.