The ROAD to Housing Act is now headed to the Senate floor for consideration. It has garnered support from key housing, real estate and mortgage trade groups, though several are pushing for changes to specific provisions.
“This bill is a welcome step in the right direction,” said Isaac Boltansky, head of public policy at Pennymac, in a statement. “It’s not a panacea, but it moves the ball forward on supply, affordability and program efficiency. With a few targeted fixes, especially relating to appraisals, it has real potential to become law and deliver meaningful improvements across the housing landscape.”
Kevin Sears, president of the National Association of REALTORS, praised the legislation for targeting a broad set of housing challenges.
“By focusing on expanding supply, reducing barriers to development, preserving existing housing, strengthening disaster recovery efforts, and creating pathways to homeownership, this critical legislation will help ensure that the American Dream of homeownership remains accessible to families across the economic spectrum,” Sears said in a letter.
Mortgage Bankers Association (MBA) president and CEO Bob Broeksmit also highlighted the bill’s focus on boosting housing stock and streamlining federal programs. However, he said the MBA is working with legislators to refine parts of the bill that raise industry concerns.
“We will continue to engage with Senators Scott and Warren to potentially refine and improve certain sections of the bill, including provisions dealing with lender liability, second appraisals and targeted reforms to the Rural Housing Service program,” Broeksmit said in a statement.
MBA flagged several sections for revision, including Section 705, which would amend the Truth in Lending Act (TILA) to require lenders to maintain processes for consumer-initiated reconsiderations of value (ROVs) when appraisals are disputed. MBA argues this would create significant new liability for lenders and effectively mandate a second appraisal at the lender’s expense.nclc
Meanwhile, Section 503 proposes technology upgrades and expanded lending flexibility under the USDA’s Rural Housing Service. MBA supports the general intent but wants clarification that loan assumption provisions apply only to new loans. It also seeks language allowing servicers to charge fees to cover transaction costs.
The National Consumer Law Center (NCLC) emphasized that the bill would make permanent a key federal program that supports long-term recovery for survivors of natural disasters. It would also allow rural, low-income homeowners with USDA Direct Loans to access loan term extensions and provide additional support for distressed borrowers with FHA, USDA, and VA loans by ensuring they can work with housing counselors.
The legislation also addresses the lack of access to small-dollar mortgage lending in underserved communities by directing federal agencies to review and assess lending practices.
“This bill offers tangible progress in making homeownership more attainable, more affordable, and more equitable, and in delivering a permanent long-term disaster relief program,” said Alys Cohen, director of federal housing advocacy at NCLC.
