The Mortgage Bankers Association welcomed Senate approval of the amended package
A sweeping bipartisan housing package is one step closer to becoming law after the Senate approved the 21st Century ROAD to Housing Act, legislation that supporters say could help expand housing supply, improve affordability, and widen access to mortgage credit.
The measure, which passed with overwhelming bipartisan support, now moves to the House of Representatives, where lawmakers are expected to take it up quickly. If enacted, it would represent the most significant federal housing legislation since the years following the global financial crisis.
For mortgage brokers, the bill's significance extends beyond its headline provision targeting large institutional investors. Industry participants are paying close attention to measures designed to increase housing inventory, modernize federal housing programs, and expand financing opportunities for prospective borrowers.
The legislation arrives as affordability remains one of the most pressing challenges facing the housing market.
Supply-focused approach
A central goal of the legislation is to encourage housing production. Lawmakers included provisions intended to reduce development barriers, support local housing initiatives, and encourage communities to add new inventory.
Among the notable changes is the elimination of an outdated manufactured housing requirement commonly known as the "chassis rule." Housing experts have argued that removing the mandate could lower construction costs for manufactured homes and improve affordability for buyers seeking lower-cost housing options.
The bill also expands federal programs that reward municipalities for increasing housing production, a strategy many housing policy experts view as a meaningful step toward addressing long-standing inventory shortages.
Industry observers have consistently argued that affordability cannot be solved without increasing the number of available homes.
“We need some help on the supply side,” Kyle Concannon, VP of product and wholesale at Constructive Capital, previously told Mortgage Professional America.
“Like a 50-year mortgage, I’m not thrilled about that. Another thing announced recently: buying mortgage bonds and mortgage securities. That's all the demand side. There's already plenty of demand. People want to own a home, or they want to own a rental. They want the American dream.”
Investor restrictions draw attention
One of the legislation's highest-profile provisions would prohibit large institutional investors that already own more than 350 single-family homes from acquiring additional properties.
Supporters argue the restriction could help reduce competition between large investors and owner-occupant buyers in certain markets.
However, some housing economists question whether the provision will materially improve affordability. Researchers note that institutional investors represent only a small share of the nation's overall housing stock, suggesting broader supply constraints remain the primary driver of elevated housing costs.
Sharon Wilson Géno, president of the National Multifamily Housing Council, cautioned against expecting dramatic market changes from a single legislative package.
"There is no one magical thing in this bill that is going to suddenly unlock the housing markets and allow us to create the housing that America needs," Géno said.
Still, she noted that the legislation demonstrates growing bipartisan recognition that housing affordability and housing supply have become major concerns for voters and policymakers alike.
Mortgage industry backs reforms
The Mortgage Bankers Association welcomed Senate approval of the amended package and highlighted several provisions viewed as beneficial to lenders, borrowers, and housing providers.
"MBA applauds Senate Banking Committee Chair Tim Scott, Ranking Member Elizabeth Warren, House Financial Services Committee Chair French Hill, Ranking Member Maxine Waters, the Trump administration, and the bipartisan group of lawmakers whose commitment to finding common ground and advancing practical solutions led to a bicameral agreement and Senate passage of this consequential housing package," said Bob Broeksmit, CMB, MBA's president and chief executive officer.
According to Broeksmit, the legislation would increase HUD multifamily loan limits for the first time since 2003 while also reducing development barriers and expanding access to affordable mortgage financing.
"The legislation preserves many of the hard-fought policy priorities that MBA has advocated for throughout this debate and will increase HUD's multifamily loan limits for the first time since 2003, reduce barriers to development and increase housing supply, modernize federal housing programs, and expand access to affordable mortgage credit," he said.
Broeksmit added that the association is urging lawmakers to move quickly.
"We welcome the House leadership's plans to consider the bill this week and urge swift passage so it can be sent to President Trump for signature as soon as possible. Enactment of these reforms would expand housing opportunities, lower costs, help more Americans achieve and sustain homeownership, and support a healthier, more affordable rental housing market for families across the country."
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