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What the Confirmation Hearings and Legislative Priorities Mean for Mortgage Professionals

What the Confirmation Hearings and Legislative Priorities Mean for Mortgage Professionals January 18, 2025

With Inauguration Day on Monday, the new administration is poised to bring significant changes to housing policy and regulatory priorities. Confirmation hearings for the HUD and Treasury Secretary nominees have already highlighted themes of affordability, regulatory reform, and financial inclusivity. The nomination of a new FHFA Director and the Senate Banking Committee Chair’s legislative agenda further underscore the focus on reshaping housing and financial policies under the new administration.

1.HUD Secretary Nominee Scott Turner

At the confirmation hearing for HUD Secretary nominee Scott Turner, discussions centered around affordable housing and regulatory reform. Turner emphasized his commitment to reducing HUD’s regulatory burden to make it easier for builders and developers to create affordable housing. He pledged to review all HUD programs and regulations, aiming to streamline processes for developers. Turner also voiced a strong commitment to enforcing fair lending laws and highlighted the importance of transparency in housing-related data, such as crime rates.

One of the notable moments in the hearing was Turner’s acknowledgment that HUD is not fulfilling its mission, calling for a reset in its operations. He also emphasized the need for HUD staff to return to in-office work, signaling a shift in agency culture. For mortgage professionals, these changes could lead to a more flexible and development-friendly regulatory environment, but the exact impact remains to be seen.

2.Treasury Secretary Nominee Scott Bessent

Treasury Secretary nominee Scott Bessent focused largely on economic policies during his confirmation hearing, such as renewing the 2017 tax cuts and defending tariffs as valuable tools for negotiation. Surprisingly, there was no mention of the conservatorship of Fannie Mae and Freddie Mac, despite pre-hearing speculation about the topic.

Bessent did briefly touch on housing, noting that America faces a significant affordability crisis and housing shortage, which are critical challenges for working families. While his comments were broad, they underscore the importance of policies that address these systemic issues. For mortgage professionals, any shifts in Treasury policy could indirectly impact housing affordability and borrower financial opportunities.

3.FHFA Nominee Bill Pulte

President-elect Trump has nominated Bill Pulte, a self-described “Twitter philanthropist” and grandson of the founder of the PulteGroup, to lead the Federal Housing Finance Agency (“FHFA“). Although Pulte lacks traditional mortgage finance policy experience, he is known for his commitment to affordable housing and community development. Analysts expect Pulte to follow the Trump Administration’s housing policy direction, which will likely be crafted by the National Economic Council and Treasury.

Pulte’s nomination suggests a focus on affordability and innovative solutions, but his limited policy experience raises questions about how he will navigate the complexities of overseeing Fannie Mae and Freddie Mac. Mortgage professionals should watch closely for policy changes that could impact the secondary mortgage market.

4.Senate Banking Committee Priorities

Senator Tim Scott, the new Chairman of the Senate Banking Committee, outlined his legislative priorities this week. His agenda focuses on financial inclusivity, affordable housing, and community resilience. Scott aims to reduce regulatory burdens introduced during the Biden Administration and reintroduce his “Road to Housing Act,” which includes provisions to support low-balance loan originations under $70,000. These provisions may provide new opportunities for loan originators working with underserved borrowers.

Scott also plans to review how overregulation contributes to housing costs and delays, potentially opening the door for policies that make it easier to develop affordable housing. For mortgage professionals, these priorities signal a legislative push toward creating more opportunities for first-time homebuyers and underserved communities.

5.What It Means for Mortgage Professionals

The confirmation hearings and legislative priorities reveal a clear focus on affordability and reducing regulatory burdens, themes that could shape the mortgage industry significantly. Mortgage professionals should prepare for potential changes in HUD programs, Treasury policies, and FHFA leadership that may affect housing availability and lending practices. Additionally, Senator Scott’s legislative agenda could introduce new flexibility in loan originator compensation and promote lending to underserved borrowers.

Staying informed and proactive in adapting to these potential changes will be crucial for mortgage brokers and loan originators aiming to thrive in a shifting regulatory landscape.

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