NAR said the order “highlights the importance of reviewing regulatory barriers.” The order comes amid President Trump’s increased focus on housing.
President Trump signed a new executive order aimed at “restoring mortgage competition” and expanding access to loans, a move that drew some praise from housing industry groups.
The order, signed Friday, blames “regulatory burdens” for rising mortgage costs, limiting “access for creditworthy borrowers” and weakening “community bank participation in lending.” According to the order, other problems in the lending sector include reduced competition among lenders, outdated valuation rules, and reduced available capital, among others.
In response, the order aims to eliminate “bureaucracy.” Specifically, the bill includes directing the Consumer Financial Protection Bureau (CFPB) to “make appropriate adjustments to mortgage rules to help small banks facilitate more affordable lending.” Other components of the order include:
Urges federal regulators to revise guidance to “focus on prudent underwriting practices rather than overly technical and process-oriented lending approaches.” Directs the CFPB to modernize reporting requirements. Modernizes valuation regulations. Promotes “modernizing digital mortgage lending by expanding electronic signatures, electronic notes, and remote online notarization.”
The order comes as President Trump increasingly puts housing at the center of his administration’s agenda. Among other things, he has repeatedly called for lower mortgage rates (an issue raised in Friday’s order) and attacked institutional investors. In response to President Trump’s criticism of institutional investors, the U.S. Senate recently added a provision to the latest housing bill that would prohibit institutional investors from purchasing certain single-family homes.
Additionally, President Trump signed a second order last week aimed at removing regulatory barriers for the homebuilding industry.
President Trump’s order on access to mortgage loans drew some praise from housing groups. David M. Dworkin, president and CEO of the National Housing Council, said in a statement that the organization “supports efforts to reduce unnecessary regulatory barriers that slow housing production, limit access to mortgage financing, and increase costs for American families.”
Dworkin added that President Trump’s order “highlights the importance of addressing both the supply and financing challenges that contribute to the nation’s home affordability crisis.”
The National Association of Realtors expressed cautious optimism in a statement, saying Trump’s order “underscores the importance of reviewing regulatory barriers that can increase costs for borrowers and limit lenders’ ability to serve local markets.”
“NAR looks forward to reviewing the proposal and working with the government, Congress, and regulators to ensure that efforts to expand access to credit are beneficial to consumers,” the statement added, “combined with policies that address the nation’s housing supply challenges. Together, these efforts will help more Americans achieve the dream of homeownership.”
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