Summary
President **Trump** has signed two executive orders aimed at removing regulatory barriers to affordable housing construction and promoting access to mortgage credit. The orders direct federal agencies to reduce regulatory barriers related to environmental reviews, energy and water use requirements, and residential building codes. This move is part of **Trump**'s housing affordability agenda, which includes supporting the [[21st-century-road-to-housing-act|21st Century ROAD to Housing Act]] before Congress. The orders also seek to make it easier for Americans to purchase homes by reducing unnecessary costs and increasing lender participation in mortgage lending and servicing. However, some argue that these changes may undermine consumer protections and **Dodd-Frank** regulations. The impact of these orders will be closely watched by [[housing-and-urban-development|Housing and Urban Development]] (HUD) and other federal agencies. For more information on affordable housing, see [[affordable-housing|Affordable Housing]] and [[housing-credit-program|Housing Credit Program]]. The orders have been met with both support and criticism, with some arguing that they will increase housing affordability and others arguing that they will lead to a lack of oversight in the mortgage lending industry. The [[national-association-of-home-builders|National Association of Home Builders]] (NAHB) has expressed support for the orders, while the [[national-consumer-law-center|National Consumer Law Center]] has expressed concerns. As the situation develops, it will be important to monitor the impact of these orders on the housing market and the economy as a whole, including the potential effects on [[federal-housing-administration|Federal Housing Administration]] (FHA) loans and [[fannie-mae|Fannie Mae]] and [[freddie-mac|Freddie Mac]] mortgage programs.
Key Takeaways
- President Trump signed two executive orders to remove regulatory barriers to affordable housing construction and promote access to mortgage credit
- The orders direct federal agencies to reduce regulatory barriers related to environmental reviews, energy and water use requirements, and residential building codes
- The orders seek to make it easier for Americans to purchase homes by reducing unnecessary costs and increasing lender participation in mortgage lending and servicing
- The impact of the orders is yet to be seen and depends on the implementation and enforcement by federal agencies
- The orders raise concerns about consumer protections and the potential for a lack of oversight in the mortgage lending industry
Balanced Perspective
The executive orders signed by **Trump** aim to remove regulatory barriers to affordable housing construction and promote access to mortgage credit. While the intentions behind the orders are clear, the impact is yet to be seen. The orders direct federal agencies to reduce regulatory barriers, but it is unclear how effective these changes will be in increasing housing affordability. The orders also seek to make it easier for Americans to purchase homes, but some argue that this may come at the cost of consumer protections. As noted by the [[government-accountability-office|Government Accountability Office]] (GAO), the orders will require careful monitoring to ensure that they do not lead to a lack of oversight in the mortgage lending industry. The success of these orders will depend on the implementation and enforcement by federal agencies, including the [[consumer-financial-protection-bureau|Consumer Financial Protection Bureau]] (CFPB).
Optimistic View
The executive orders signed by **Trump** are a step in the right direction towards increasing housing affordability and access to mortgage credit. By reducing regulatory barriers, the orders will make it easier for Americans to purchase homes and for developers to build affordable housing. This move is expected to boost the economy and create jobs in the construction industry. As noted by the [[national-association-of-realtors|National Association of Realtors]] (NAR), the orders will help to address the nation's affordable housing crisis. With the support of the [[21st-century-road-to-housing-act|21st Century ROAD to Housing Act]], **Trump**'s housing affordability agenda is gaining momentum. The orders will also help to increase access to mortgage credit for low- and moderate-income borrowers, which will be beneficial for the overall economy.
Critical View
The executive orders signed by **Trump** are a misguided attempt to increase housing affordability and access to mortgage credit. By reducing regulatory barriers, the orders will undermine consumer protections and **Dodd-Frank** regulations, which were put in place to prevent another housing market crisis. The orders will also lead to a lack of oversight in the mortgage lending industry, which will put borrowers at risk. As noted by the [[center-for-responsible-lending|Center for Responsible Lending]] (CRL), the orders will disproportionately harm low- and moderate-income borrowers. Furthermore, the orders do not address the root causes of the affordable housing crisis, such as the lack of affordable housing supply and the rising costs of construction. The orders are a short-sighted solution that will have long-term negative consequences for the economy and the housing market.
Source
Originally reported by ncsha.org