Leading U.S. financial services trade organizations, including America’s Credit Unions, the Independent Community Bankers of America (ICBA), and the Mortgage Bankers Association (MBA) are urging the Trump Administration to implement near-term administrative actions aimed at reducing mortgage costs and increasing homeownership access.
In a letter sent to Kevin Hassett, director of the National Economic Council (NEC), America’s Credit Unions, ICBA, and the MBA outlined three targeted reforms that could be enacted without congressional approval:
- The growing strain on household incomes from rising home prices
- Higher interest rates
- Increased monthly escrow payments for property taxes and insurance
The trade groups noted that first-time homebuyers are particularly affected by these affordability pressures.
Among the recommended measures, the organizations called for ending the tri-merge credit reporting requirement for GSE-backed loans, allowing lenders to use a single credit report. They argued that this would streamline mortgage origination, foster competition in credit reporting, and reduce costs for both borrowers and lenders.
The letter also urged the Trump Administration to consider lowering Federal Housing Administration (FHA) mortgage insurance premiums (MIP), noting that the FHA’s Mutual Mortgage Insurance Fund holds reserves nearly six times the statutory minimum. Reducing or eliminating life-of-loan MIP requirements, they said, could provide immediate financial relief to borrowers while expanding access to homeownership.
Finally, the groups recommended reducing Loan Level Price Adjustments (LLPAs) across the grid, and eliminating LLPAs for rate-and-term refinances for borrowers with strong payment histories. This measure, they said, would complement MIP reductions and help ensure a balanced market between GSE and FHA lending.
The letter concluded by emphasizing the need for broader regulatory modernization to address the structural cost of mortgage lending, while commending the Administration’s efforts to improve housing affordability. The organizations committed to continued engagement with federal policymakers to advance these reforms and support responsible homeownership.
