Housing and mortgage industry leaders say there is room for housing policy to move in Congress even as Washington, D.C., divides power between a Democratic-controlled House and Senate and a Republican-led White House.
Democrats captured both chambers on Tuesday night, but any housing bills under the new leadership will need support from President Donald Trump and enough Republican votes to clear the Senate.
“Voters made it clear that affordability is a central concern, and housing is the biggest line item in most family budgets,” said Isaac Boltansky, head of public policy at Pennymac. “The ROAD to Housing Act laid a solid foundation, and we believe lawmakers on both sides of the aisle should work on a ROAD to Housing 2.0 package that builds on it and helps more families buy and keep a home.”
Asked what should be included in a 2.0 package, Boltansky cited the lock-in effect created by capital gains taxes, which can discourage homeowners from selling, and the Neighborhood Homes Investment Act as a “good starting point.”
The Mortgage Bankers Association (MBA) said in a statement that housing remains a bipartisan issue and it will “work with new and returning lawmakers as well as the Trump administration to advance common sense proposals to lower costs.”
The trade group in October released a policy road map to reduce closing costs, expand credit access and lower rental housing financing costs. Its proposals include easing tri-merge credit report use, aligning loan-level price adjustments (LLPAs) and lowering the annual mortgage insurance premium for Federal Housing Administration (FHA) loans.
‘Every election brings opportunity’
Scott Norman, CEO of the Texas Mortgage Bankers Association, told HousingWire that the election shifts power but also creates opportunity for policy changes.
“It was a surprising night, but every election brings opportunity,” Norman said. “In Austin and in Washington, a gavel is something you borrow, and last night voters took a few back. That’s the system working as designed. No chairmanship belongs to the person holding it, and no majority is permanent. In much of the world, a change in power signals a crisis. Here, it simply means new leadership and a fresh look at policy.”
The American Land Title Association (ALTA) said that as policymakers continue addressing housing affordability challenges, consumer protection must remain part of the conversation.
“Fraud is unaffordable, and increasingly sophisticated schemes are putting American homeowners and their property rights at risk,” ALTA said.
‘A mandate to focus on pocketbook issues’
Jake Krimmel, senior economist at Realtor.com, said many Democratic campaigns emphasized economic issues, but the impact of the elections on the broader economy and mortgage rates is still unclear.
“Democrats have a clear mandate to focus on pocketbook issues, but whether they can translate that into a legislative agenda that delivers on that mandate remains to be seen,” Krimmel said.
Krimmel pointed to the conflict in the Middle East as a key variable. He said uncertainty remains around how the election outcome will affect the Iran war, which has been a source of inflation pressure. Democrats have been vocal critics of the conflict, and a resolution that improves oil supply would likely ease inflation and “potentially provide relief for mortgage rates.”
“Wanting the conflict to end, and finding terms that work for all involved are two different things,” Krimmel said.
On fiscal policy, Boltansky said another debt ceiling confrontation is likely in 2027: “Any focus on addressing the country’s harrowing fiscal trajectory would be welcome for the bond market, which obviously has a direct impact on rates,” he said.
‘No overnight rewrite of the rules’
While Congress can set agendas and control oversight, executive branch leadership will still drive most regulatory implementation for housing and mortgage markets.
Tim Rood, founder and CEO of Washington, D.C.-based advisory and technology firm Impact Capitol, said in his newsletter that Democratic majorities can control the agendas for the House financial services and Senate banking committees, investigate agencies, shape spending negotiations and withhold Senate confirmation of nominees when the new Congress convenes in January.
But he pointed out that Trump retains executive authority and leadership at agencies “does not change automatically with Congress.”
Rood said that for mortgage executives, the new alignment means more hearings, tougher confirmations and a more contested implementation calendar, “not an overnight rewrite of the rules.”
“The real fight will be over which existing policies can still be executed, funded and defended,” he said.
One closely watched appointment is Brian Johnson’s nomination to lead the Consumer Financial Protection Bureau (CFPB). An attorney told HousingWire the confirmation is now at risk as Democrats may demand additional representation across financial agencies as part of broader negotiations.
The same attorney said one of the industry’s top regulatory priorities — changes to the loan originator compensation rule — remains unresolved.
“There are things that both sides of the aisle could help, like increase the availability of credit to borrowers by allowing lenders to claw back compensation in certain situations or compete. Maybe something will happen that is coordinated, but I think it’s kind of open in the air at the moment,” the attorney said.
Editor’s note: Sarah Wheeler contributed reporting to this story.
