Trump issues executive order to help community banks promote housing affordability
ICBA commended the Trump administration for issuing an executive order directing regulatory reforms that will help community banks promote housing affordability.
Directing Reg Relief: Noting that statutory and regulatory changes have increased the compliance costs of mortgage origination—contributing to a decline in bank participation in mortgage lending—the executive order directs federal regulators to consider regulatory relief for banks with less than $100 billion in assets.
Key Policies: Among its provisions, the executive order directs agencies to consider reforms to:
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Consumer Financial Protection Bureau ability-to-repay and qualified mortgage rules.
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Home Mortgage Disclosure Act data collection and disclosure standards.
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Capital regulations and Federal Home Loan Bank access.
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Supervisory expectations related to community bank construction lending.
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Appraisal regulations, guidance, and qualification requirements.
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Wet‑signature requirements for disclosures, applications, and closing documents.
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Supervisory expectations to support portfolio mortgage servicing as a core community banking function.
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Enforcement actions for violations of consumer financial laws.
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Duplicative or unnecessary licensing requirements for mortgage loan officers.
ICBA View: In a news release, ICBA President and CEO Rebeca Romero Rainey:
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Commended the Trump administration for advancing regulatory relief that will help community banks support housing affordability in local communities.
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Urged Congress to ensure pending housing legislation includes community bank regulatory relief provisions contained in the bipartisan House bill that passed 390-9 last month.