Making Homeownership More Attainable
In an effort to make homeownership more accessible, President Trump has issued two executive orders aimed at reducing barriers to new home construction and easing mortgage lending requirements.
The first order, titled “Removing Regulatory Barriers to Affordable Home Construction,”, focuses on streamlining regulatory processes that have hindered new home construction and driven up housing costs. The order calls for reforms at both the federal and local levels to promote affordability and efficiency in the housing market.
Specifically, the order directs HUD Secretary Scott Turner and FHFA Director Bill Pulte to review and eliminate regulations that impede residential development. It also highlights the need to address issues such as permitting delays, green energy requirements, and restrictions on manufactured housing.
Facilitating Mortgage Access
The second order, titled “Promoting Access to Mortgage Credit,”, focuses on improving access to mortgage credit, particularly for smaller banks and creditworthy borrowers. The order calls for amendments to regulations such as Regulation Z and the Truth in Lending Act to support community banks and simplify the lending process.
In addition, the order urges regulators to consider revised capital regulations that would benefit all banks, including community banks. It also emphasizes the need for modernized appraisals using technology such as automated valuation models and artificial intelligence.
Industry Reactions
Industry leaders have responded positively to the executive orders, with organizations such as the Mortgage Bankers Association and the National Housing Conference praising the administration’s focus on affordability and access to credit. The Community Home Lenders of America and the Independent Community Bankers of America have also expressed support for the initiatives, citing the potential for positive impact on the housing market.
Overall, these executive orders represent a significant step towards addressing the challenges facing the housing market and making homeownership more achievable for Americans across the country.