What does President Donald Trump mean for homeowners?
In a series of executive orders on Friday, the Trump Administration has signaled its intent to make it easier for people to refinance mortgages.
In the first three weeks of the administration, the Department of Housing and Urban Development issued nearly 700 such executive orders, and nearly 400 more were issued in subsequent months.
Trump’s orders would also require banks to make borrowers more confident about their ability to repay their loans.
The orders could help people like Amanda Jones, who lost her home to foreclosure in the 1990s.
Jones, whose husband lost his job as a mortgage banker, has a $10,000 down payment on a house that she says is worth $250,000, but it would cost her $1 million to make payments on the mortgage.
Jones says that because of her history with the banks, she is not able to make a down payment of $500,000 because she has not had a job in over four years.
She says that if the government is going to make mortgage refinancing easier for everyone, the banks should do more to make their mortgages more appealing.
The Treasury Department has said that it would also review refinancing standards for mortgages with high monthly payments, and the administration has proposed changes to the way the Department and the Federal Housing Administration assess mortgage applications.
Jones is worried about her ability to afford the payments because of how her mortgage is structured.
“If you have to pay a higher monthly payment, you can’t pay more,” Jones told Next Big Truth.
“You can’t just sit around with a paycheck.”
Her bank, which she declined to name, said it does not currently offer refinancing services, and that the federal government has not made refinancing an optional part of its program.
The banks have made efforts to help low-income homeowners refinance with their own money, but many lenders are still struggling to meet demand.
In July, the Federal Reserve Bank of Minneapolis issued a report calling on banks to lower their interest rates, improve customer service, and reduce loan originations, as part of a broader effort to increase consumer lending.
The Federal Reserve has also raised the interest rate on many of its consumer loans.
“The mortgage market is highly leveraged,” said Josh Ritter, senior portfolio manager at Firstpoint Asset Management, a private equity firm that invests in residential real estate.
“It’s not a question of if [the market will collapse, but] when.”
The Federal Deposit Insurance Corporation also has made it easier to reflound mortgages, allowing banks to offer refinanced mortgages to customers.
Banks have also pushed borrowers to refinances with their home equity, and a study published by the Federal Deposit Tax Credit Center in August found that refinancing at least a third of home equity loans would increase borrowers’ equity by $1,400.
The Trump Administration is also pushing banks to improve their service and improve the quality of their loan documents, which the Treasury Department says can reduce fraud.
But the president has made clear that he wants banks to be the ones to refortify, or forgive, the loans of borrowers who have failed to repay them.
At a recent speech to the Federal Home Loan Mortgage Corporation, President Trump said that banks “have a responsibility to make sure that we do not put Americans in jeopardy by giving them a product that is not of their quality, and therefore, we have a responsibility.”
In a speech to regulators on Thursday, Trump also said that the Federal Mortgage Bankers Association, which represents lenders, has “a responsibility to do everything we can to help our borrowers.”
The FHRA, the nation’s largest mortgage servicers, is also under pressure.
The agency has been under fire for its handling of mortgage defaults in recent years, which have led to billions in taxpayer bailouts for the nation and caused a crisis in the mortgage market.
Banks are now struggling to make up for lost revenue from mortgage refinancings.
Fannie Mae, which once offered mortgage refinanced loans, has lost more than half its value since Trump took office.
The housing agency has also had to lay off thousands of employees in recent months as it tries to stem a financial crisis that led to a record $5 trillion in losses in the financial markets in October.
The FHA has also been under increasing pressure to provide more affordable housing to struggling homeowners, who are often forced to make down payments that make it difficult for them to afford home ownership.
The FHA recently launched an effort to make the affordable housing program more accessible to low- and moderate-income households.
But in recent weeks, the agency has faced criticism that it has failed to address the affordability of many homes by offering loans with lower interest rates and lower down payments.
In August, the FHA announced that it will end its mortgage refinancer program.
“We are now focused on serving all Americans,” FHA Commissioner Mary Koss said at the time.
“As we continue to work with lenders to deliver lower interest rate and lower payment