Why It Matters

U.S. Mortgage Insurers faces a core challenge: housing affordability remains severely constrained by undersupply, limiting the pool of borrowers who can access mortgages—and mortgage insurance. While the industry achieved a victory with the permanent reinstatement of the mortgage insurance tax deduction in mid-2025, the broader crisis persists. Congress is now focused on expanding homeownership access through additional tax incentives, reforming FHA insurance requirements, and creating specialized programs for first responders, teachers, and DACA recipients. USMI’s strategy reflects this environment: maintaining focus on tax deductibility and GSE reform while deploying specialized external firms to navigate emerging issues like regulatory capital requirements and potential changes to Fannie Mae and Freddie Mac.

By the Numbers

U.S. Mortgage Insurers reported $130,000 in expenditures for its in-house lobbying operation in the last quarter of 2025. The organization has lobbied continuously since 2014 across 135 total disclosures, spending more than $5.3 million.

The in-house team, established in 2017, accounts for $3.03 million across 36 filings. USMI supplements internal capabilities with external firms targeting specific policy niches. Federal Policy Group LLC was its primary partner from 2014-2023, earning $990,000 for tax-focused work. Federal Hall Policy Advisors LLC received $370,000 from 2022-2025.

In 2025, USMI engaged new external partners Breakaway LLC ($32,500) and Rubin, Turnbull & Associates Inc. ($30,000), signaling continued investment in specialized expertise beyond core operations.

The Agenda

U.S. Mortgage Insurers focuses on issues central to the mortgage insurance industry’s business model:

• Tax deductibility of mortgage insurance premiums: USMI advocates for making the mortgage insurance tax deduction permanent and expanding income eligibility caps through bills including the Middle Class Mortgage Insurance Premium Act of 2025 (H.R.2760) and Mortgage Insurance Tax Deduction Act of 2025 (H.R.918).

• FHA mortgage insurance reform: The Mortgage Insurance Freedom Act (H.R.5508) would require the FHA to stop collecting annual premiums once loan-to-value ratios hit 78%. The Housing Financial Literacy Act of 2025 (H.R.6125) proposes reducing FHA premiums for first-time homebuyers completing HUD-certified counseling.

• Housing finance reform and GSEs: USMI lobbies on broader issues involving government-sponsored enterprises and credit risk sharing arrangements.

• Specialized homeownership programs: Including the HELPER Act of 2025 (S.978/H.R.2094) and Housing Stability for Dreamers Act (H.R.3472).

Broader Context

USMI’s Q4 2025 lobbying activity unfolds amid significant congressional momentum on housing affordability. Several bills directly affecting mortgage insurance are advancing, including proposals to expand tax deductibility and reform FHA requirements.

The legislative environment reflects bipartisan consensus that housing affordability represents a critical national challenge. Congressional committees held multiple hearings throughout 2025, examining regulatory barriers and modernizing federal programs to address the housing shortage.

A persistent housing supply shortage—with estimates suggesting 3 to 4 million additional homes needed—constrains overall mortgage volume. However, this crisis has spurred expanded homebuyer assistance programs, creating scenarios where mortgage insurance becomes essential for borrowers with limited down payment capacity.

Ongoing debates around Government-Sponsored Enterprise reform could fundamentally reshape the housing finance system, likely explaining USMI’s expanded use of specialized external lobbying firms in 2025.

Between The Lines

Congress is actively advancing multiple bills directly impacting mortgage insurance policy. Members including Rep. Vern Buchanan (R-FL-16) and Rep. Jimmy Panetta (D-CA-19) have publicly championed the mortgage insurance deduction expansion. Reps. Gregory W. Meeks (D-NY-5) and Pete Sessions (R-TX-17) jointly reintroduced the Mortgage Insurance Freedom Act.

The House Financial Services Committee held relevant hearings including Building Our Future: Increasing Housing Supply in America in March 2025 and Home 2.0: Modern Solutions to the Housing Shortage in July.

Competitive Landscape

USMI operates within a crowded advocacy space. Enact Holdings Inc. and Mortgage Guaranty Insurance Corp. (MGIC) are lobbying on identical legislative priorities. PennyMac Financial Services Inc. and the National Association of Hispanic Real Estate Professionals push similar priorities around FHA premium reduction and homeownership access.

This collective lobbying creates reinforcing pressure on lawmakers, with USMI’s 2025 engagement of new external firms signaling the industry continues consolidating advocacy efforts on shared objectives.

The Bottom Line

U.S. Mortgage Insurers spent $130,000 on in-house lobbying in the last quarter 2025, continuing advocacy that has exceeded $5.3 million since 2014. The organization’s priorities align with active congressional efforts on multiple bills, while competitors lobby on identical issues. USMI’s reliance on specialized external firms suggests preparation for longer-term structural changes in housing finance, particularly around government-sponsored enterprise reform.

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