In early September, I provided an election update to the Dallas Mortgage Bankers Association. We discussed the potential outcomes of the election and how those outcomes may impact the housing finance industry.
Nothing is a given this election year. The race for the White House and to control the House of Representatives is very tight. Both will likely come down to a handful of states and congressional races. Meanwhile, the Senate—which is currently controlled by a narrow majority of Democrats—is likely to flip to Republicans.
What does this mean? It is unlikely that one party controls the White House, the House of Representatives, and the Senate. It is even more unlikely that any one party controls all three and has 60 votes (the number of votes needed to clear procedural hurdles to consider most legislation) in the Senate. As such, it is unlikely any legislation passes without strong bipartisan support.
How will this impact housing finance policy? I believe the legislative stalemate will force either administration to address issues through the regulatory or administrative process. Both campaigns have focused on housing affordability as a major issue but do not have many specific proposals outlining how they would increase housing supply. A second term for former President Trump would likely lead to his administration releasing Fannie Mae and Freddie Mac from conservatorship—which would have a significant impact on the housing finance industry.
BMG is a proud supporter of the Mortgage Bankers Association and Texas Mortgage Bankers Association. I encourage anyone reading this to attend future MBA and TMBA advocacy conferences and to communicate with elected officials through MBA’s Mortgage Action Alliance and TMBA’s Advocacy Army.
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