Promoting Access to Mortgage Credit
The order directs multiple federal financial regulators to consider a broad set of regulatory reforms aimed at reducing compliance costs for community and smaller banks in the mortgage market, with the goal of expanding credit access for rural and low-to-moderate income borrowers.
It does not itself change any regulation — all substantive reforms depend on future agency rulemaking — but it sets a policy framework covering origination rules, capital requirements, appraisal standards, digital mortgage processes, and enforcement priorities.
What this order does
What it orders
The order directs several federal financial regulators to consider, as appropriate and consistent with applicable law, a wide range of reforms to reduce regulatory burdens on community banks (generally under $30 billion in assets) and smaller banks (under $100 billion). Targeted areas include: reforming Qualified Mortgage and Ability-to-Repay rules under Regulation Z; modernizing HMDA data collection thresholds; revising capital and liquidity frameworks; updating appraisal standards to allow AI-based tools and desktop appraisals; digitizing mortgage closing processes; simplifying mortgage servicing rules; limiting civil monetary penalties to willful violations; and eliminating duplicative licensing requirements for mortgage loan officers.
The order itself changes no regulation and creates no new legal rights or obligations for lenders or borrowers. Every substantive reform requires the relevant agency to undertake its own rulemaking or guidance revision. The sole concrete output with a firm deadline is a report from the FHFA Director on housing finance market efficiency within 120 days.
Who it affects
Community banks and smaller banks engaged in mortgage origination, servicing, or construction lending; federal financial regulators directed to consider rulemaking; homebuyers — particularly rural households and low-to-moderate income borrowers — who may be affected if the contemplated rule changes ultimately expand or contract credit availability.
Why it matters
If agencies follow through with the contemplated rulemakings, community banks could face lower compliance costs and re-engage in mortgage lending, potentially broadening credit access for underserved borrowers. No immediate change to mortgage rules, rates, or lender obligations occurs from this order alone.
What must happen and when
How the order is supposed to work
The order functions as a coordinated policy directive across eight topic areas, each addressed to a specific set of regulators using "shall consider, as appropriate and consistent with applicable law" language. That phrasing preserves each agency's independent legal authority; none is required to adopt any specific rule. The FHFA Director must produce a housing finance efficiency report within 120 days — the only binding deliverable. All other reforms require the agencies to initiate notice-and-comment rulemaking under the Administrative Procedure Act before taking effect.
Actions and deadlines
- FHFA Director submits a report on national housing finance market efficiency and identifies recommendations for regulatory or legislative changes
- CFPB considers proposing amendments to Regulation Z to tailor ATR, QM, TILA, RESPA, and TRID requirements for smaller banks
- CFPB considers proposing amendments to Regulation C to raise the HMDA asset-threshold exemption and exclude inquiries from reporting scope
- Relevant regulators consider revising capital regulations to tailor mortgage risk weights for community and smaller banks
- Relevant regulators consider modernizing appraisal regulations to expand use of AI tools, desktop appraisals, and simplified qualification requirements
- Relevant regulators consider promulgating a policy limiting civil monetary penalties to willful, knowing, or reckless violations of consumer financial laws