President Trump's Administration Rolls Back Biden-Era FHFA Initiatives, Shifts Focus to Operational Efficiency in Mortgage Market
The Federal Housing Finance Agency (FHFA), under President Trump's administration, has initiated several rollbacks of Biden-era policies, signaling a shift in its operational focus. According to Eric Chaffee, the John C. Hutchins Professor of Law for Case Western Reserve University, the Trump administration has expressed concerns regarding the previous administration's efforts in diversity, inclusion, equity, and climate change. These changes include allowing condos to purchase actual cash value roof insurance, withdrawing from the Network of Central Banks and Supervisors for Greening the Financial System, and adjusting housing goals for Fannie Mae and Freddie Mac to reduce target percentages for low- and very-low-income homebuyers. Additionally, the FHFA has changed credit score requirements, allowing for lower scores and the use of VantageScore, and has permitted cryptocurrency as a qualifying asset for mortgages. Doug Perry, strategic financing advisor at Real Estate Bees, notes a shift towards operatio...