Trump loosens restrictions on community banks to give more people access to home mortgages
President Trump ordered banking regulators to ease restrictions that made it difficult for community banks to offer mortgages, expanding his efforts to improve housing affordability before the midterms.
In a separate action, Mr. Trump ordered agencies to find ways to eliminate red tape that hinders the construction of new single-family homes.
The two executive orders signed Friday intensified Mr. Trump’s efforts to help Americans angry about soaring homeownership prices. Rising mortgage rates and home prices have sidelined many buyers and sellers, while other costs, like home insurance, have also risen sharply.
The median home price rose in February to a record $398,000, an increase of 3.8% from February 2025, according to data from the National Association of Realtors. This price is five times the average income, although the general rule is that a house costs three times a household’s income.
Mortgage rates have risen above 6%, about double what they were a few years ago, and the Iranian conflict has sparked fears of inflation and rising energy prices.
Mr. Trump’s order directed the Consumer Financial Protection Bureau to change its mortgage guidelines so that smaller banks could make more mortgage loans. The CFPB will revise the requirements of the Home Mortgage Disclosure Act to make it easier for Americans to obtain a mortgage loan.
The rule changes would impact community banks, defined as financial institutions with less than $30 billion in assets. The administration believes that allowing smaller banks to increase the number of loans they make will create competition for making home loans, thereby reducing the cost of a mortgage loan.
In his order, Mr. Trump said the rules and regulations governing community banks have “resulted in reduced access to credit for certain creditworthy borrowers, including rural and low- and moderate-income households.”
The other order would direct state and local governments to speed up permitting timelines for new housing construction by rolling back “green” building codes, including eliminating Biden-era efficiency mandates. It also aims to reduce design and construction requirements, so builders can use more efficient construction methods.
Under this directive, the Departments of Commerce, Housing, Urban Development and Transportation, as well as the Federal Housing Finance Agency, are responsible for 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 combat housing prices.
Earlier this year, he ordered Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds. He also signed an executive order banning institutional investors from purchasing single-family homes.
The Senate and House recently passed separate bills containing numerous proposals to improve housing affordability, although it is unclear whether either bill will reach Mr. Trump’s desk. House members have already expressed opposition to the Senate bill.
