The Washington Report

On October 13, 2026, NAR submitted its comments to the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) on the recent proposed rulemaking on the Community Reinvestment Act (CRA). The new rulemaking proposes changes to the ways banks of all sizes are evaluated on their lending and community investment activity in the areas they serve, among other changes. NAR has a robust policy supporting the spirit of the CRA and has long advocated for modernizing the program to ensure that banks are providing robust capital to their communities, especially in times of great need.

The letter asks for greater alignment between the agencies enforcing the CRA, an analysis of the effects of the modified definitions of banking size and what it means for community investment, clear public reporting and transparency in how banks are complying, strong and consistent oversight, and suggestions for ways in which banks could receive CRA credit.

NAR looks forward to working with the regulators to ensure the CRA is strengthened and solidified for years to come.

Read the letter submitted to the OCC and FDIC

On October 14, the Federal Housing Administration (FHA) published guidance allowing build-to-rent (BTR) communities to qualify for FHA-insured multifamily financing. BTR communities are rental properties made up of detached single-family homes, duplexes, or triplexes, and can include both site-built and manufactured homes. Effective immediately, these properties will be treated under the same terms as traditional multifamily rental developments, subject to specific requirements.

FHA’s multifamily programs have historically focused on developments with buildings containing four or more units, such as garden-style or mid-rise apartments. HUD describes the new policy as a response to the January executive order Stopping Wall Street from Competing with Main Street Homebuyers, which directed HUD to create narrow exceptions for BTR properties that are planned, permitted, financed and constructed as rental communities.

BTR properties are now eligible under two programs:

• Section 221(d)(4) for construction of new BTR communities
• Section 223(f) for purchasing or refinancing recently constructed BTR communities

To qualify, a community must have at least five homes on a single, contiguous site operated as one professionally managed rental property, with no privately owned homes mixed in. Individual homes or lots cannot be sold separately during the life of the insured loan, and any homeowners association rules cannot interfere with HUD requirements or the owner's control of the property. The Fair Housing Act's multifamily accessibility design and construction requirements do not apply to the individual detached homes, duplexes or triplexes, although common areas and site amenities must still meet applicable accessibility requirements.

The administration released a new executive order aimed at Decreasing Housing Costs for the American People.  The order makes important changes to expand supply and shore up owner affordability over the long term.

The executive order directs:

• The Fannie Mae, Freddie Mac, and their regulator the FHFA to develop a program that would ensure the timely cancellation of mortgage insurance. Currently, homeowners must request the release of mortgage insurance when the mortgage is 78% or less of the property value.  This change would put more money in homeowners’ pockets.
• The creation of a task force make up of HUD, FHFA, USDA, Commerce, and the VA to explore methods to increase the cost and lower the cost of home construction with an emphasis on modern manufacturing processes.
• The FHFA to expand it current program to waive title insurance requirements and fees on certain refinances.
• The VA and USDA to reduce their rates on direct loans for home purchases, which could help stimulate home purchases

NAR will monitor and comment on these changes as more information is available and they are implemented.

The Department of the Treasury released a proposed rule on October 22 to implement the 21st Century ROAD to Housing Act’s restrictions on large institutional investors buying single-family homes. Beginning January 7, 2027, investors that control at least 350 single-family homes generally may not buy additional homes unless the purchase falls under one of the exceptions in the law.

The proposal explains how those exceptions would work. Build-to-rent purchases would be limited to newly built homes that have never been owner-occupied and are bought within 18 months of completion. Renovate-to-rent purchases would apply only to homes that fail key building code standards when purchased, and the investor would need to fix those problems and spend at least 15 percent of the purchase price, excluding land, on improvements. For programs that help renters become buyers, the proposal defines what counts as meaningful financial support toward a renter’s purchase, with a safe harbor of up to $5,000 for renters of five years or more. It also gives renters 30 days to make an offer before an investor can list or market the home to other buyers. The proposal also clarifies which investors are covered, including when a minority investor in a fund is considered passive. Foreclosure-related sales and sales between large investors of homes they already owned could continue.

Treasury describes this as the first of several rulemakings on the law. Comments are due 30 days after the proposal is published in the Federal Register, which is scheduled for October 23. NAR is reviewing the proposal and will share updates with members.

On October 7, 2026, NAR joined 11 other real estate, mortgage, banking, and credit union organizations on a coalition letter calling for the FHFA, FHA, USDA, and VA to:

• Standardize the reconsideration of value (ROV) process,
• Align federal programs with Fannie Mae and Freddie Mac,
• Improve consumer education, and 
• Coordinate any additional requirements.

Read the letter.

On October 23, 2026, NAR submitted a comment letter on the Appraiser Qualification Board's Third Exposure Draft of Proposed Changes to the Real Property Appraiser Qualification Criteria. 

In the letter, NAR commends the AQB for the continued modernization reflected in the Third Exposure Draft. The proposed changes align with several longstanding NAR policy objectives by expanding pathways into the profession, reducing unnecessary educational and experience barriers, emphasizing demonstrated competency, and providing additional safeguards for alternative qualification pathways.

Nevertheless, NAR encourages the AQB to take further steps to recognize relevant, verifiable parallel professional experience and educational equivalencies; retain mandatory fair housing and valuation bias continuing education; and ensure consistent, transparent evaluation standards across all qualification pathways.