Trump executive orders target housing supply and mortgage credit

Article from HousingWire 3/18/26

President Donald Trump has announced two executive orders aimed at increasing the US housing supply and consumer access to mortgage credit, with the first order directing federal agencies such as the US Department of Housing and Urban Development (HUD) and the Federal Housing Finance Agency (FHFA) to review and revise regulations related to the permitting and construction of new homes.
The first order, “Removing Regulatory Barriers to Affordable Home Construction,” seeks to eliminate or reform rules that impede new residential development and affordability, including scrutinizing environmental protection laws that may be leading to increased homeownership costs and higher property tax and insurance burdens.
The order calls for HUD Secretary Scott Turner and FHFA Director Bill Pulte to work together to boost housing affordability through the creation of regulatory best practices at the state and local levels, including developing a series of practices related to streamlined permitting processes and scaled-back green energy construction requirements within 60 days.
The second order, “Promoting Access to Mortgage Credit,” aims to address the decline in mortgage lending by banks since the housing crisis of the 2000s by directing the Consumer Financial Protection Bureau (CFPB) to amend Regulation Z and the Truth in Lending Act to support smaller banks, potentially including a broader safe harbor for portfolio loans.

The order also directs the CFPB to consider replacing TRID timing rules to speed up the loan closing process, exempting small-balance mortgages from caps on Qualified Mortgage (QM) points and fees, and updating “reasonable compliance” standards for banks related to Ability-to-Repay and QM underwriting requirements.
Additionally, the order directs the Federal Reserve, the Federal Deposit Insurance Corp (FDIC), and other regulators to consider revised capital regulations that would tailor risk weights for all banks, including community banks, which could apply to portfolio mortgages, servicing rights, and warehouse lines of credit, in an effort to expand access to mortgage credit for creditworthy borrowers.

The Trump administration has issued executive orders targeting the housing supply and mortgage credit, with one section focusing on modernizing appraisals through the use of automated valuation models and artificial intelligence, as well as simplifying the appraiser qualification process and reducing appraisal requirements for certain loans.
The orders also aim to align appraisal standards for Federal Housing Administration (FHA) and U.S. Department of Veterans Affairs (VA) mortgages, which is expected to increase access to credit and reduce costs for consumers.

The Mortgage Bankers Association (MBA) has expressed support for the administration’s efforts to address costly mortgage regulations, with President and CEO Bob Broeksmit stating that the benefits of these changes should be available to every consumer, regardless of the lender they choose.
David M. Dworkin, president and CEO of the National Housing Conference (NHC), has also praised the orders, noting that they highlight the importance of addressing both the supply and financing challenges that contribute to the nation’s housing affordability crisis.
The Community Home Lenders of America (CHLA) has offered more cautious comments, stating that only time will tell whether the executive orders will translate into transformative action by federal agencies, but acknowledging that they represent a step in the right direction.
Rebecca Romero Rainey, president and CEO of the Independent Community Bankers of America (ICBA), has expressed support for the president’s actions, stating that directing federal regulators to advance pro-growth regulatory reforms will help community banks support housing affordability in local communities nationwide.
The ICBA is also seeking reforms to Consumer Financial Protection Bureau mortgage requirements, Home Mortgage Disclosure Act reporting rules, capital and liquidity standards, and other regulations to provide community banks with regulatory relief that will support mortgage lending.

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