What's in store for the mortgage industry as a new president takes office?

Donald Trump will cap an extraordinary political comeback this morning when he takes the oath of office to commence his second presidency, an administration whose policies could bring about big changes in the housing and mortgage sectors.
Trump’s plans for blanket tariffs on Canadian and Mexican goods crossing the border and the possibility of mass deportations have grabbed the most headlines – but the new president is also expected to pursue consequential moves on the housing front including the end of conservatorship of Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) who’ve been under federal control since 2008.
Tasked with advancing that goal will be Bill Pulte, Trump’s nominee to lead the Federal Housing Finance Agency (FHFA), which oversees Fannie and Freddie.
The feasibility of pushing the GSEs back into majority private-sector ownership has been hotly debated throughout the mortgage industry in recent weeks – but there’s plenty of scope to improve the performance of both entities whether or not they remain under government control, according to United Wholesale Mortgage (UWM) chief executive officer Mat Ishbia (pictured top).
He told Mortgage Professional America that Trump tapping Pulte, a private equity executive whose grandfather founded the renowned homebuilder PulteGroup, marked a positive sign for the mortgage industry’s prospects under the new Trump administration.
“Whether it’s privatized or stays the way it is, I think the most important thing is starting to create innovation and doing things to help consumers,” Ishbia said, “so I think someone from the industry that understands the building world but also the mortgage side will be able to help the most with that. I think it’s really exciting.”
That means getting Fannie and Freddie fully aligned with the mortgage industry’s mission, he added: making a home affordable for all. “Not just for the low end or the high end, but for everybody.” Finding ways to improve the outlook for consumers on appraisal and credit report costs would mark a “home run” for the new administration, according to Ishbia.
As Donald Trump prepares to assume the presidency next week, he walks into an economy that may not require the bold reforms he once promised, according to a report from Reuters.https://t.co/FtFPz7LmeF
— Mortgage Professional America Magazine (@MPAMagazineUS) January 15, 2025
New HUD head says department is ‘failing at its most basic mission’
Trump’s new cabinet will also include Scott Turner, the former NFL player who’s been lined up to lead the Department of Housing and Urban Development (HUD).
Turner’s confirmation hearing last week included a sharp critique of the department he’s set to helm, which has recently acknowledged an 18.1% increase in homelessness across the US and 770,000 people classed as homeless last year.
The department, Turner said, “is failing at its most basic mission. And that has to come to an end.” He pledged to make renting units to voucher-holders easier for landlords, and also said he would uphold fair housing laws and campaign to keep the HUD budget steady even if Trump threatens cuts.
“I do commit to having those conversations with the president and with Congress as it pertains to being an ambassador and a voice for HUD,” Turner said, “and to maximize the budget that we are given.”
How will the housing and mortgage markets fare under Trump 2.0?
Trump’s November election victory followed a months-long battle with Joe Biden and then Kamala Harris marked by acrimony and division. But while certain of the incoming president’s policy proposals have stirred fears of inflationary pressure – and mortgage rates have crept steadily higher since his win – Ishbia sounded a positive tone for the housing and mortgage markets’ prospects in the years ahead.
“I think overall, the Trump administration is good for housing, and very good for consumers. I think it’s going to be a good thing across the board,” he said. “Obviously there are a lot of unknowns at this point, but President Trump’s obviously a business-focused person who also understands the private sector and at the same time, I think he cares about getting consumers access to liquidity and access to housing.
“I think it’s going to be good things, and I’m hoping it works out great. We’re excited about the new opportunities for 2025 and beyond in the market.”
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