Impact of President Trump’s Executive Order On Housing
President Trump signed two executive orders focused on making housing more affordable.
President Trump: “We want America to be a nation of OWNERS, not renters. The first executive order is about bringing more Community Banks back into the mortgage business. Two decades ago, over 5,000 community banks were offering mortgages. Today, that number has been slashed by more than 50%—largely because of burdensome, unnecessary regulations that radical liberals imposed on community lenders for the benefit of their donors on Wall Street and frankly, for the benefits of themselves. The result was less competition and higher mortgage rates for hardworking Americans like you.
That is why, under my order, we will eliminate the thicket of unnecessary rules and restrictions that crippled Community Banks. When more local banks start offering mortgages again, fees will go down, costs will fall, and homebuyers will be able to get a mortgage under more affordable terms.”
Trump continued, “The second Executive Order I am signing today will help lower Construction costs for building new homes, so that homebuilders can offer Americans more affordable options. As part of the Green New Scam, the Biden administration and many state and local governments added endless ridiculous regulations that raised construction costs substantially. Under the Trump Administration, we want to make it possible for every American to live that American Dream in a beautiful home.”
Peter Gwaltney, the President and CEO of the North Carolina Bankers Association, praised the actions saying, “Today’s Executive Order Promoting Access to Mortgage Credit is a significant step in the right direction for homebuyers, banks, and the U.S. economy. Following the passage and implementation of the Dodd-Frank Act, banks of all sizes in North Carolina and across the nation exited the mortgage business, citing increased financial and regulatory risk, as well as higher compliance costs. As a result, banks now originate only about 25% of all mortgage loans. My hope is that President Trump's Executive Order will help reverse this trend by creating an economic and regulatory environment in which banks can profitably offer affordable mortgage products and services in their communities.”
Bottom Line: Both of these Executive Orders will reduce the regulatory barriers that drive up mortgage costs and unreasonable environmental restrictions, both of these work drive up the costs of housing. North Carolinians continue to face increased housing, as Americans flock to the Tar Heel State to escape liberal areas, driving up the costs of housing. Additionally, Charlotte is a major financial hub that will growth with the elimination of unnecessary regulations.
