Oklahoma Bankers Association We make bankers better!
| On Friday afternoon, President Trump signed a new executive ordered titled “Promoting Access to Mortgage Credit.”
The order directs the Consumer Financial Protection Bureau and other financial regulators to consider a variety of changes aimed at making compliance easier for smaller, community banks. It also calls for agencies to revise existing policies to support community bank lending for construction, expand adaptation of digital technology in mortgages and update appraisal standards, among other changes. A fact sheet that accompanied the order explained in more detail its more specific goals. After the order was issued, Scott Turner, secretary of the U.S. Department of Housing and Urban Development, announced in a press release that in accordance with the executive orders, HUD “will terminate regulatory barriers, reform programs, and incentivize states and localities to change burdensome rules that hinder residential development, housing affordability, and availability of home loans.” HUD claimed in the press release that regulatory costs account for nearly $94,000 of the final price of a new single-family home, and green energy mandates in building codes can add more than $30,000 to the cost of construction. It is interesting to note that the executive order appears to focus regulatory relief primarily on community banks without specifically referencing credit unions. The OBA will continue to monitor any actions and fallout that result from the president’s executive order. |