"Proposals involving penalty-free 401(k) withdrawals and restrictions on institutional homebuyers would require congressional action, industry experts say. In particular, a ban on large investors purchasing single-family homes would likely fall outside the budget reconciliation process, meaning it would need 60 votes in the Senate a high bar that makes passage unlikely in the near term. Still, trade groups broadly welcome the administration's focus on affordability at a time when mortgage rates remain above 6%, while stressing the need for additional detail and complementary policies."
"MBA welcomes the Trump administration's focus on making homeownership and rental housing more affordable and attainable for more Americans, said Bob Broeksmit, president and CEO of the Mortgage Bankers Association (MBA), in a statement. We look forward to learning more about the Administration's forthcoming proposals and have offered targeted recommendations to reduce housing costs."
"Among those recommendations, MBA continues to advocate for a reduction in Federal Housing Administration (FHA) mortgage insurance premiums a position also supported by the National Association of Mortgage Brokers (NAMB). NAMB has additionally called for ending FHA's life-of-loan mortgage insurance rule, which would allow borrowers to cancel premiums once their loan balance reaches 78% of the home's value. MBA has also urged policymakers to reduce GSE loan-level price adjustments for middle-income borrowers and for rate-and-term refinances, as well as to eliminate the tri-merge credit report requirement for lower-risk GSE-backed loans."
Some proposed housing measures require congressional action and face significant legislative hurdles, especially a ban on large investors buying single-family homes that would likely need 60 Senate votes. Trade groups generally welcome an affordability focus amid mortgage rates above 6% while urging more detail and complementary policies. The Mortgage Bankers Association and the National Association of Mortgage Brokers recommend reducing FHA mortgage insurance premiums and ending life-of-loan mortgage insurance so borrowers can cancel premiums once loan balances reach 78% of value. Additional proposals include lowering GSE loan-level price adjustments, removing tri-merge credit requirements for lower-risk loans, reforming originator compensation rules, improving construction loan options, and expanding condominium and multifamily lending through updated GSE and FHA policies.
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