Agencies would consider easing rules for mortgage lenders

The CFPB and other financial regulators shall consider changes that could reduce compliance burdens for smaller banks. The proposals would cover mortgage origination, refinancing, servicing, loan disclosures, borrower-ability reviews, mortgage data reporting and enforcement. Any action must be appropriate and consistent with existing law. The order suggests, but does not itself adopt, changes such as broader protections for some portfolio loans, simpler closing rules, revised fee limits and correction-first treatment for good-faith technical errors. The order gives no deadline for these possible rule changes.

Federal financial and housing regulators shall consider changes to mortgage risk rules, housing-finance liquidity, construction lending and property appraisals. Possible changes would include mortgage risk weights, longer-term Federal Home Loan Bank advances, targeted housing liquidity programs, construction-loan guidance, alternative appraisals and fewer appraisals for some lower-risk loans. Any action must fit existing law and the agencies' legal authority. The order permits agencies to consider changes but does not itself create a new lending program, change capital requirements or remove appraisal requirements. The agencies receive no general deadline for these considerations.

The FHFA director shall submit a housing-finance market report to the President's economic policy and budget officials. The report must identify recommendations for regulatory or legislative changes needed to address housing-finance regulatory or oversight gaps. The report is a study and recommendation, not an immediate change to mortgage law or lending programs. Implementation remains subject to existing law and available appropriations, and the order creates no enforceable right or benefit. The report is due within 120 days of March 13, 2026.