The regulatory tide is never still in the mortgage world—and the legacy of Trump-era housing policies continues to ripple across the lending industry in unexpected ways. From changes in federal agency leadership to shifts in enforcement priorities, lenders are still navigating the consequences of these decisions, often without a clear map.
So, what should you be watching right now?
FHA and GSE Policy Shifts: A Continuing Balancing Act
One of the most significant impacts of the Trump administration’s housing policy lies in the push for shrinking the federal government’s footprint in the housing market. This included efforts to privatize Fannie Mae and Freddie Mac, scale back the Federal Housing Administration (FHA), and revise underwriting standards for government-backed loans.
While full privatization stalled, the regulatory groundwork laid during that period continues to influence today’s policy landscape. For lenders, that means a cautious approach to GSE guideline changes and a need to stay nimble as both Fannie and Freddie revise risk-based pricing frameworks and revisit loan eligibility standards.
Rollbacks in Fair Lending Oversight
Another key legacy is the regulatory rollback on fair lending enforcement. The Trump-era CFPB placed less emphasis on disparate impact analysis and scaled back investigations. However, under the Biden administration, we’ve seen a renewed commitment to fair lending compliance—placing lenders who grew comfortable under the old regime in a vulnerable position.
Today’s environment demands heightened vigilance. Lenders must now reevaluate policies and algorithms, especially those powered by AI, to ensure there’s no unintentional bias—a growing area of scrutiny for regulators.
Environmental Rules and Housing Affordability
Beyond the agencies directly tied to mortgage lending, broader policies also left a mark. The previous administration’s rollback of environmental regulations may have temporarily eased land development constraints. However, with reversals now in play, especially around water rights and building standards, developers and lenders may soon face renewed challenges in project approvals and appraisal processes.
Housing affordability continues to be a flashpoint. While the Trump administration attempted to reduce regulatory burdens to boost housing supply, the net impact remains debatable—particularly in the wake of supply chain disruptions and escalating construction costs.
What Lenders Should Be Doing Now
Understanding how these regulatory legacies are playing out is not just a matter of compliance—it’s a strategic imperative.
a) Revisit your compliance frameworks to ensure alignment with revived enforcement efforts from the CFPB and HUD.
b) Keep close tabs on GSE updates, particularly around loan-level pricing adjustments and appraisal guidelines.
c) Evaluate technology use in underwriting and servicing, especially tools driven by algorithms and AI, for fair lending compliance.
d) Anticipate environmental and zoning-related regulatory swings that could impact development pipelines and financing options.
In short, the past isn’t finished shaping the present. Proactive monitoring and thoughtful policy reviews can help lending institutions steer through shifting sands and stay one step ahead of risk.
Source: https://www.housingwire.com/articles/updated-list-of-all-trumps-actions-that-impact-housing/