President Trump has directed bank regulators to loosen restrictions that made it difficult for community banks to offer mortgage loans, expanding his push to improve home affordability ahead of the midterms.
In a separate action, Mr. Trump ordered agencies to find ways to eliminate red tape that stymies the construction of new single-family homes.
The two executive orders signed Friday escalated Mr. Trump’s efforts to help Americans angry about the soaring price of home ownership. Rising mortgage rates and home prices have sidelined many buyers and sellers, while other costs, such as home insurance, have also increased sharply.
The median home price increased in February to a record $398,000, a 3.8% increase from February 2025, according to data from the National Association of Realtors. That price is five times the average income, though the traditional rule of thumb is that a house should cost three times a household’s income.
Mortgage rates have risen above 6%, roughly double the level that they were a few years ago, and the Iran conflict has raised fears of inflation and increased energy prices.
Mr. Trump’s order directed the Consumer Financial Protection Bureau to change its mortgage guidelines so that smaller banks could issue more mortgage loans. The CFPB will overhaul the requirements under the Home Mortgage Disclosure Act to make it easier for Americans to obtain a mortgage.
The rule changes would impact community banks, which are defined as financial institutions with less than $30 billion in assets. The administration’s thinking is that allowing smaller banks to increase the number of loans they issue will create competition to provide home loans, thus reducing the cost of a mortgage.
In his order, Mr. Trump said the rules and regulations governing community banks have “resulted in reduced access to credit for some creditworthy borrowers, including rural households and low- and moderate-income households.”
The other order would create incentives to state and local governments to speed up permitting times for new housing construction by reducing “green” building codes, including the elimination of Biden-era efficiency mandates. It is also aimed at reducing design and building mandates, so builders can employ more efficient construction methods.
Under the directive, the departments of Commerce, Housing and Urban Development and Transportation, along with the Federal Housing Finance Agency, are tasked with eliminating regulations and updating rules that reduce residential development.
“Layers of unnecessary regulatory barriers, slow permitting processes and onerous mandates at all levels of government have delayed construction, restricted development and driven up the costs of new housing. These constraints have made housing less affordable for many Americans,” the order states.
The directives are the latest efforts by Mr. Trump to tackle home prices.
Earlier this year, he directed Fannie Mae and Freddie Mac to buy $200 billion worth of mortgage bonds. He also signed an executive order banning institutional investors from purchasing single-family homes.
The Senate and House recently passed separate legislation with numerous proposals to address housing affordability, though it’s unclear if either of these bills will make it to Mr. Trump’s desk. House members have already voiced opposition to the Senate bill.
• Jeff Mordock can be reached at jmordock@washingtontimes.com.
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