What’s in Store for the Mortgage Industry Post-Election

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Filed under: Market Comentary

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There will be numerous mortgage and housing related issues that President-elect Donald Trump will face once he takes office in January.

According to National Mortgage News, the following is a synopsis of some of these important issues that will impact the mortgage industry.

The  new Republican administration will open some new jobs for a lot of the housing-related positions in the federal government. One of these includes the Department of Housing and Urban Development secretary. Another will be the Federal Housing Administration commissioner. In addition, there will be openings for the Ginnie Mae president and the Federal Housing Finance Agency director.

Another issue will focus on the government sponsored enterprises (GSE). The GSE is currently in its eighth year of “conservatorship” under the Federal Housing Finance Agency. Talks of reform have stalled and the question is if the new administration and Congress will release Fannie Mae and Freddie Mac from their obligations to the U.S. Treasury Department.

In addition, since the election is now over, will there be a rate hike as early as the Fed’s December meeting? The Federal Reserve hasn’t done this since it raised the federal funds rate in more than nine years last December.

Yet another issue focuses on if the Mortgage Interest Deduction (MID) is safe. The housing industry has completely defended the mortgage interest tax deduction as an essential tool for promoting home ownership. However, the Mortgage Bankers Association has recently mentioned the possibility to “re-examine” the deduction. With that said, if Congress can find consensus on tax reform, it might include changes or possibly simply eliminate the MID.

Finally, since a federal court’s ruling said that the structure of the Consumer Financial Protection Bureau (CFPB) is unconstitutional, a case focusing on the mortgage industry might be going to the Supreme Court.

Up to now, Republicans in the Senate have blocked Merrick Garland, President Obama’s nominee to succeed Justice Antonin Scalia on the Supreme Court. This will most likely continue, which will provide an opportunity for the new Trump administration to offer its own nominee.

If you have any questions about the mortgage industry or how it could affect you, please feel free to contact me.

Source: http://www.nationalmortgagenews.com/gallery/5-mortgage-questions-facing-president-trump-and-the-new-congress-1090464-1.html

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