WASHINGTON— President Donald Trump has signed an executive order directing federal regulators to overhaul a wide range of mortgage lending rules, and while the White House’s public messaging repeatedly emphasizes “banks” and “community banks,” America’s Credit Unions is stressing that credit unions are clearly intended to benefit from the relief, as well.
In a statement, America’s Credit Unions President/CEO Scott Simpson said the group sees the order as a meaningful opening for long-sought mortgage reforms.
“America’s Credit Unions welcomes the Administration’s actions to expand responsible access to mortgage credit and reduce unnecessary regulatory burdens that make it harder for community-based lenders to serve their members,” Simpson said. “Throughout their history, credit unions have led our nation in providing affordable, flexible mortgage loans for working Americans. This Executive Order will reduce regulatory obstacles to credit unions helping more Americans achieve the dream of homeownership.
“Importantly, this effort includes federal regulators such as the National Credit Union Administration, ensuring credit unions are part of the broader conversation about modernizing mortgage rules,” continued Simpson. “America’s Credit Unions has asked repeatedly for many of the commonsense reforms in this Executive Order. For example, America’s Credit Unions specifically urged policymakers several times to revisit Home Mortgage Disclosure Act reporting requirements, as increasingly complex HMDA reporting rules were driving up compliance costs for community lenders without improving outcomes for borrowers. This is exactly the type of targeted regulatory relief credit unions have been calling for.
“Credit unions remain committed to responsible lending and transparency while helping more families achieve homeownership,” concluded Simpson. “We look forward to working with the Administration, Congress, and regulators to ensure these reforms.”
In comments to CUToday.info, James Akin, head of regulatory advocacy at America’s Credit Unions, said ACU views the order as a broad deregulatory push aimed at rolling back mortgage-related burdens layered on after the financial crisis and said the inclusion of the NCUA in the operative text makes it clear, in the trade group’s view, that credit unions are covered despite not being named in the White House fact sheet.
“What we see here is an executive order focused on reducing many of the regulatory burdens and hurdles that were put in place after the financial crisis,” Akin said. “I do think the White House’s messaging is focused on small banks and community banks. The term ‘bank’ is used a lot in the executive order. That’s not new for us. … But I think it is pretty clear to us, from every section throughout the executive order, that credit unions are included, because the NCUA is specifically directed to take actions to provide regulatory relief.”
Akin said ACU is “confident” the relief applies to credit unions despite the fact the words “credit unions” do not appear in the White House materials. “In every instance where the order applies to banks, it applies to credit unions,” he said, noting that where the CFPB is directed to act, the underlying mortgage rules generally apply to both banks and credit unions.
He added ACU has already been in contact with White House and National Economic Council officials and noted that several provisions align with reforms ACU has been pressing for, including changes related to HMDA thresholds and mortgage capital treatment.
The executive order directs the Consumer Financial Protection Bureau to tailor mortgage rules for smaller lenders, including modernizing documentation requirements and revisiting Home Mortgage Disclosure Act reporting requirements to reduce compliance costs and address borrower-privacy concerns. It also instructs federal banking regulators to shift supervisory expectations toward prudent underwriting rather than what the Administration described as overly technical, process-driven examinations.
Beyond compliance relief, the order reaches into broader mortgage finance policy. The White House said regulators are being told to consider changes to capital and liquidity rules, expand access to longer-dated Federal Home Loan Bank advances tied to residential mortgage assets, and develop targeted FHLB liquidity programs focused on entry-level housing, owner-occupied purchase loans and smaller residential builders. Regulators are also directed to modernize appraisal rules, including broader use of alternative valuation models and fewer appraisal requirements for lower-risk transactions.
The order also pushes digital mortgage modernization, including wider use of electronic signatures, e-notes and remote online notarization, and asks regulators to consider supervisory changes that would support portfolio mortgage servicing as a core community-lender function. The Administration said the broader goal is to reverse more than a decade of post-crisis regulatory layering that it argues has pushed smaller lenders out of mortgage markets and reduced competition, especially in rural, low- and moderate-income and first-time homebuyer segments.
Akin acknowledged that the White House’s top-line language centers on “banks,” but said that is a familiar issue for credit unions in Washington and does not change ACU’s reading of the operative directives. He also downplayed concerns raised in some credit union circles that a community bank critic may have influenced the drafting, as America’s Credit Unions was very much part of policy conversations that are reflected in the executive order, Akin noted.