A trio of financial services industry trade groups – the Mortgage Bankers Association, America’s Credit Unions and the Independent Community Bankers of America – are lobbying the Trump administration to consider three actions that they claim could lower borrowing costs for homebuyers that will not require congressional input.
In a letter to Kevin Hassett, director of the White House’s National Economic Council, the trade groups are seeking the end of the tri-merge credit reporting requirement and allowing a single-file framework. They also call for “responsibly reducing mortgage insurance premiums” while reducing loan level price adjustments across the grid and eliminating these adjustments for rate/term refinances.
“Appreciating home prices, rising monthly escrow payments for property taxes and insurance, supply issues and higher interest rates continue to strain household incomes, particularly for first-time homebuyers,” the letter stated. “We share the Administration’s view that addressing these challenges requires coordinated action across federal agencies to reduce costs for borrowers and sustain responsible access to affordable homeownership.”
The trade groups added, “The mortgage market is increasingly governed by overlapping, highly complex regulations that have driven up mortgage costs, making it significantly more expensive to originate and service a mortgage,” the letter stated. “While near-term affordability is critical, policymakers should not overlook the opportunity for broader regulatory modernization that would reduce costs structurally and sustainably.”
