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Mortgage groups call the ROAD to Housing Act a step toward affordability
Industry officials said the law bundles FHA small-dollar mortgage work, appraisal and title barriers, and rural housing reforms, with outcomes depending on implementation.
Mortgage industry trade groups on HousingWire characterized the newly enacted 21st Century ROAD to Housing Act as a “consequential” but incremental package aimed at easing housing affordability challenges. They said the bill brings together more than 60 housing provisions in a bipartisan effort, while stopping short of calling any single element a cure-all.
Mortgage Bankers Association legislative leader Bill Killmer said the measures are positive because they address multiple frictions at once, including small-dollar mortgage efforts, appraisal and title barriers, rural housing reforms, housing counseling, and increased awareness of the VA home loan program. He added that individually the provisions are not “silver bullets,” but together they could “move the needle” and encourage additional dialogue.
NAMB president Kimber White agreed the act provides a framework for future housing work, but warned that implementation will determine impact. She said it is the first major housing bill passed in 40 years and urged continued follow through on the bill’s components.
Mortgage industry watchers highlighted an FHA small-dollar mortgage pilot designed to encourage lenders to originate lower-balance loans, particularly in rural and lower-cost markets. Frank Cassidy of Walker & Dunlop said the long-standing obstacle has been lender economics, noting that the origination effort can be similar for a $50,000 loan as it is for a $500,000 loan, even though loan sizes differ.
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