The Trump administration moved swiftly to deliver its deregulatory agenda to the mortgage industry in the president’s first 100 days.
Some of those many changes could lead to lower housing costs, following President Trump’s
Additionally, the administration has
Trump’s
Read on for a walkthrough of the Trump administration’s changes affecting the industry at-large.
No more CFPB?
The Trump administration is defanging the financial regulator despite a federal judge’s efforts to slow the dismantling. U.S. District Court Judge Amy Berman Jackson has sided with the CFPB employees’ union so far, recently halting Acting Director Russell Vought’s
Amid the chaos, the bureau has
Borrower rules rolled back
The Federal Housing Administration in March
Consumers could also continue to receive unwelcome telemarketing correspondences, following the Federal Communications Commission
A new-look Consumer Financial Protection Bureau also halted several consumer protections, including
New lending restrictions on FHA and USDA loans
The government will no longer sponsor FHA or U.S. Department of Agriculture loans to non-citizens. HUD will stop offering FHA loans on May 25 for borrowers who are in the U.S. on work visas, have asylum status, or are
The USDA in March
The FHFA also ended Fannie Mae and Freddie Mac’s participation in special purpose credit programs, which allow creditors to consider race, ethnicity or geographic location when assessing credit eligibility. Pulte’s order however
Loss mitigation changes for VA loans
The Department of Veterans Affairs is ending its loss mitigation option for its borrowers, with new VA leadership suggesting the protection lacked congressional authority. The Veterans Affairs Servicing Purchase Program, or VASP, will expire May 1, and the government currently has no loss mit alternative for distressed veteran borrowers.
The FHA is also squeezing relief for delinquent borrowers, moving to end a temporary loan-modification program Sept. 30 and making permanent loss mitigation more scarce. Lenders so far have
Lender oversight evolves
Amid a flurry of actions, Federal Housing Finance Agency Director Bill Pulte
The CFPB in April also said it’s
While the moves should reduce strain on mortgage businesses, the FHFA is emphasizing its focus on bad actors. Pulte has hinted at ratcheting up the FHFA’s Suspended Counterparties program, a rare
Construction burdens ease via HUD and FHFA
Department of Housing and Urban Development Secretary Scott Turner has
The FHA in February
The FHFA also directed Fannie Mae to
What’s on the horizon
The Trump administration teased further changes to the mortgage industry that didn’t come to fruition by the new government’s 100th day.
Democrats on Capitol Hill in April sought clarity on
The FHFA hasn’t yet hinted at widely desired plans to free the government-sponsored enterprises from conservatorship. Pulte in frequent social media updates has rather shared messages pledging to make the GSEs “great again,” including