Promoting Access to Mortgage Credit
Order Reduces Mortgage Rules to Expand Community Bank Lending
What it does
Agencies must consider and propose regulatory changes to reduce mortgage compliance burdens and tailor rules for community and smaller banks.
Real-world impact
- Eases underwriting and paperwork requirements for community and smaller banks.
- Promotes digital closings and removes wet-signature rules to speed loan closings.
- Seeks changes to capital, liquidity, and appraisal rules to boost mortgage supply.
Topics
Summary
This order directs federal financial regulators to reduce mortgage rules and paperwork to expand access to home loans. It asks agencies to modernize underwriting, disclosure, appraisal, and closing rules, promote digital signatures, and adjust capital and liquidity standards for banks.
The order focuses on community banks and "smaller banks" (under $100 billion) and aims to improve loan availability for rural, low- and moderate-income households, lower mortgage costs, and speed processing by removing burdens the text says have reduced bank participation in mortgage lending.
Questions, answered
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- “What agencies are affected by this order?”
- “How does this order change existing policy?”
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