The Washington Report
September 15, 2025
In This Issue:
Government-Sponsored Enterprises Reform
Worker Classification (independent contractor v. employee)
Government-Sponsored Enterprises Reform
NAR Staff Discuss GSE Reform with Treasury and FHFA
This week, NAR’s Executive Vice President and Chief Advocacy Officer Shannon McGahn and Ken Fears, Director of Conventional Finance and Valuation Policy, took part in two round tables on reform of Fannie Mae and Freddie Mac (the GSEs). The events took place at the US Treasury and Federal Housing Finance Agency.
The Trump Administration has signaled its intent to release the GSEs from their conservatorship, which has raised concern about the impact on mortgage rates and availability of mortgage credit. NAR’s team stressed the importance of the 30-year fixed rate mortgage as well as maintaining the availability of affordable mortgages in all markets, and at all times. They advocated transitioning the GSEs to private market utilities to ensure they continue to support the market as they have under conservatorship. NAR’s position and additional materials are available on the landing page for NAR’s Principles for Housing Finance Reform.
https://www.nar.realtor/fannie-mae-freddie-mac-gses/nar-principles-for-housing-finance-reform
Worker Classification (independent contractor v. employee)
Current Independent Contractor Rule Rescission
The U.S. Department of Labor (DOL) has recently announced through the Unified Regulatory Agenda that it will rescind the 2024 independent contractor final rule issued by the department. The current independent contractor rule is used to assess how a worker should be classified under the Fair Labor Standards Act (FLSA). The 2024 rule adopted a multi-factor totality of the circumstances test for assessing how workers should be classified under the FLSA. In May 2025, the DOL updated its independent contractor guidance, and advised that Wage and Hour staff should use previous agency guidance in reviewing enforcement actions.
The new independent contractor rule that the DOL will issue in the future will likely be more consistent with a deregulatory agenda and will likely deviate from the totality of the circumstances test and will likely adopt a more simplified test for assessing workers under the FLSA.
NAR will continue to provide updates regarding worker classification matters.