MBA Leads Joint Trades Letter Offering Actions to Lower Costs for Mortgage Borrowers
The Mortgage Bankers Association, America’s Credit Unions and the Independent Community Bankers of America sent a letter Jan. 21 to the White House’s National Economic Council urging the consideration of three near-term administration actions that could directly lower costs for borrowers seeking home mortgages.
These actions can all be taken without Congressional action.
“Appreciating home prices, rising monthly escrow payments for property taxes and insurance, supply issues and higher interest rates continue to strain household incomes, particularly for first-time homebuyers,” the letter stated. “We share the Administration’s view that addressing these challenges requires coordinated action across federal agencies to reduce costs for borrowers and sustain responsible access to affordable homeownership.”
The three actions are:
• Ending the tri-merge credit reporting requirement and allowing a single-file framework.
• Responsibly reducing mortgage insurance premiums.
• Reducing loan level price adjustments across the grid and eliminate LLPAs for rate/term refinances.
“The mortgage market is increasingly governed by overlapping, highly complex regulations that have driven up mortgage costs, making it significantly more expensive to originate and service a mortgage,” the letter stated. “While near-term affordability is critical, policymakers should not overlook the opportunity for broader regulatory modernization that would reduce costs structurally and sustainably.”
