Executive Order on Promoting Access to Mortgage Credit

On March 13, 2026, President Donald Trump issued an executive order directing federal financial regulators to review and potentially modernize mortgage regulations with the goal of expanding access to mortgage credit and reducing regulatory burden for community-based lenders.

The order focuses heavily on regulatory changes adopted after the Dodd‑Frank Wall Street Reform and Consumer Protection Act, which the Administration believes increased compliance costs and contributed to reduced participation in mortgage lending by smaller financial institutions.

Importantly, the order itself does not change any existing mortgage rules today. Instead, it directs federal regulators to consider issuing proposed rulemakings and updated supervisory guidance.

Key Areas That Could Affect Credit Unions

Ability-to-Repay (ATR) and Qualified Mortgage (QM) Reform
The order directs the Consumer Financial Protection Bureau (CFPB) to consider changes to mortgage underwriting rules, including:

• Expanding QM safe harbor treatment for portfolio loans.
• Simplifying compliance expectations under Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) rules.
• Revising the TILA-RESPA Integrated Disclosure (TRID) framework to reduce closing delays.
• Potentially exempting small-balance mortgages from certain QM points-and-fees caps.

Supervisory Approach
Federal regulators, including the National Credit Union Administration (NCUA), are encouraged to shift examiner focus from technical compliance toward whether lenders maintain sound underwriting policies and appropriately evaluate a borrower’s ability to repay.

The order also encourages regulators to adopt a “correction-first” approach for good-faith technical errors.

HMDA Reporting Relief
The CFPB is directed to consider changes to Home Mortgage Disclosure Act (HMDA) reporting requirements, including:

• Raising asset thresholds for HMDA reporting exemptions.
• Excluding mortgage inquiries from reportable data.
• Reducing operational and technology burdens associated with reporting.

Capital, Liquidity, and Housing Finance
The order directs the NCUA and other regulators to evaluate whether capital and liquidity rules appropriately reflect mortgage risks, including possible adjustments related to:

• Portfolio mortgages.
• Mortgage servicing rights.
• Warehouse lending.

It also explores expanding credit union access to Federal Home Loan Bank (FHLB) liquidity programs specifically for entry-level housing and small residential builders.

Construction Lending
Regulators are asked to consider removing 1-4 family construction lending from commercial real estate concentration guidance to encourage more housing development.

Appraisal Modernization
The order encourages modernization of appraisal rules, including:

• Expanded use of desktop and hybrid appraisals.
• Greater use of automated and AI-based valuation tools.
• Reduced appraisal requirements for lower-risk transactions.

Digital Mortgage Processes
Federal housing agencies are directed to promote digital mortgage standards, including:

• Expanded use of e-signatures and e-notes.
• Remote online notarization.
• Reduced reliance on wet signatures.

Mortgage Servicing Relief
Regulators are asked to consider simplified servicing requirements and potential exemptions from certain complex servicing rules for smaller lenders.

What Happens Next

The executive order primarily directs agencies—including the CFPB, NCUA, Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and others—to evaluate potential regulatory changes and issue proposed rules where appropriate.

In addition, housing regulators must produce a report within 120 days assessing potential reforms to improve the efficiency of U.S. housing finance markets.

Bottom Line for Credit Unions

• No regulatory changes take effect immediately.
• Most reforms would require formal notice-and-comment rulemaking before implementation.
• The Administration is signaling a policy shift toward reducing mortgage regulatory burden and encouraging community-based lenders to expand mortgage lending.

California’s Credit Unions and Nevada’s Credit Unions will continue to monitor developments and engage with federal regulators as potential rulemakings emerge, keeping credit unions informed and advocating for reforms that support responsible mortgage lending by credit unions.