LATEST NEWS ON TRUMP TRANSITION TEAM & HOUSING AGENCIES – January 9
Tim Rood
Founder & CEO Impact Capitol
January 9, 2025
Reshaping America’s Housing Landscape: Trump’s Second Term Housing Leadership
As President-elect Donald Trump prepares to return to the White House in January 2025, the real estate and housing industry is bracing for potentially seismic shifts in policy and leadership. This comprehensive analysis delves into the latest developments, rumors, and potential implications for key housing agencies and policies, offering a glimpse into the future of American housing under a second Trump administration.
Key Takeaways:
- Scott Turner nominated as HUD Secretary, signaling a potential shift towards market-driven housing solutions[^1]
- Jonathan McKernan emerges as a frontrunner for FHFA Director, with Mark Calabria also expressing openness to returning[^2][^3]
- Craig Phillips joins Freddie Mac as head of regulatory and conservatorship affairs, potentially influencing GSE policy[^9]
- Dana Wade’s multifaceted role suggests significant influence across multiple housing-related agencies
- Speculation surrounds CFPB leadership, with potential for fundamental restructuring of the agency
Industry leaders express cautious optimism about regulatory relief, while consumer advocates voice concerns about affordable housing and consumer protections
The New Guard: Key Appointments Shaping Housing Policy
HUD Leadership: Scott Turner Takes the Helm
President-elect Donald Trump has nominated Scott Turner to serve as the next Secretary of the U.S. Department of Housing and Urban Development (HUD). Turner, a former NFL player and Texas state representative, previously served as the executive director of the White House Opportunity and Revitalization Council during Trump’s first term[^1]. This nomination signals a potential shift in HUD’s approach, possibly emphasizing public-private partnerships and market-driven solutions to housing challenges.
Turner’s background in the Opportunity Zone program suggests he may prioritize initiatives that leverage private investment in underserved communities. However, his past legislative record in Texas has raised concerns among affordable housing advocates. As a state legislator, Turner voted against several programs analogous to federal housing assistance initiatives[^6].
Bob Broeksmit, President and CEO of the Mortgage Bankers Association (MBA), congratulated Turner, emphasizing the importance of addressing the nation’s housing affordability crisis[^5]. However, some civil rights organizations and affordable housing groups have expressed reservations about Turner’s commitment to federal housing assistance programs.
FHFA Leadership: A Potential Return to Familiar Faces
The leadership of the Federal Housing Finance Agency (FHFA) is poised for a significant shift, with Jonathan McKernan emerging as a frontrunner for the Director position. McKernan, currently a board member of the Federal Deposit Insurance Corp. (FDIC), could potentially be appointed through the Federal Vacancies Reform Act, allowing for swift implementation of Trump’s housing finance priorities[^2][^4].
Adding intrigue to the FHFA leadership speculation is Mark Calabria’s expressed openness to returning to a role in housing finance. Calabria, who served as FHFA Director during Trump’s first term, was a key architect of efforts to end the conservatorship of Fannie Mae and Freddie Mac. His potential return could signal a renewed push for GSE reform and privatization[^3].
CFPB and GSE Leadership: New Developments and Shifting Dynamics
The future of the Consumer Financial Protection Bureau (CFPB) under the second Trump administration remains uncertain, with several names circulated as potential replacements for current Director Rohit Chopra. However, recent developments have added new complexity to the speculation.
Craig Phillips, previously considered a potential candidate for CFPB leadership, has taken on a significant role in the housing finance sector. Freddie Mac has hired Phillips as executive vice president and head of regulatory and conservatorship affairs, effective January 2, 2025[^9]. This move positions Phillips at the heart of GSE policy just as the Trump administration prepares to take office.
Phillips brings a wealth of experience to Freddie Mac, having served as counselor to the secretary at the U.S. Department of the Treasury from 2017 to 2019. During his time at Treasury, he played a key role in developing housing finance reform plans and other regulatory initiatives[^9]. His new role at Freddie Mac involves overseeing the company’s regulatory and conservatorship affairs, capital policy, and compliance with fair lending requirements.
Other names still in the mix for CFPB leadership include Todd Zywicki, Brian Johnson, and Mark Calabria. The selection of any of these candidates would likely signal a significant shift in the CFPB’s approach, potentially moving away from the aggressive enforcement actions and expansive rulemaking that characterized the bureau under Democratic leadership[^4].
More dramatically, there are indications that the Trump administration may seek to fundamentally restructure or even dismantle the CFPB. This aligns with broader conservative critiques of the agency, including those expressed by Elon Musk, who has been tapped to lead a new “Department of Government Efficiency” in the Trump administration[^7].
Dana Wade: A Multifaceted Influence on Housing Policy
Dana Wade emerges as a potentially pivotal figure in shaping housing policy across multiple agencies. Wade, who served as FHA Commissioner during Trump’s first term, has recently taken on the role of senior adviser to the Republican majority on the House Financial Services Committee[^8].
Unverified reports suggest Wade may have accepted a position as the Vice President of Federal Programs at the Peter G. Peterson Foundation and may be playing a role in the transition of housing agency leadership for the incoming Trump administration. If these reports prove accurate, Wade’s involvement could have far-reaching implications for the future direction of key housing agencies such as HUD, FHFA, and the FHA.
Wade’s potential influence extends across several key areas:
- FHA Reform: Potential restructuring of FHA programs, including the reverse mortgage program
- Technology and Modernization: Increased investment in modernizing housing finance infrastructure
- Fiscal Policy Integration: Housing policy proposals that tie into broader economic and fiscal policy goals
- Regulatory Approach: Advocacy for a more streamlined regulatory environment
Closing Out The Biden Administration
As the Biden administration enters its final months, several key actions are expected across housing-related agencies:
1. FHFA:
– Finalization of the Enterprise Regulatory Capital Framework (ERCF) adjustments
– Potential expansion of First-Time Homebuyer mortgage products
– Continued focus on affordable housing goals and Duty to Serve programs
2. CFPB:
– Completion of the Section 1071 small business lending data collection rule
– Potential finalization of the credit card late fee rule
– Continued aggressive enforcement actions against financial institutions
3. HUD/FHA:
– Possible expansion of down payment assistance programs
– Finalization of updates to the FHA’s defect taxonomy
– Continued efforts to address racial homeownership gaps
4. GSEs (Fannie Mae and Freddie Mac):
– Potential adjustments to pricing frameworks to support affordability
– Continued focus on climate risk assessments in mortgage underwriting
– Possible expansion of programs targeting underserved communities
These final actions may create a complex policy landscape for the incoming Trump team to navigate, potentially setting up early conflicts in housing and finance policy.
Trump Administration Priorities for Housing and Mortgage Agencies
Based on campaign promises, previous policy positions, and early signals from the transition team, the following priorities are expected to shape the Trump administration’s approach to housing and mortgage policy:
1. FHFA:
– Renewed push for GSE reform and potential end to conservatorship
– Reevaluation of capital requirements for Fannie Mae and Freddie Mac
– Potential rollback of some affordable housing initiatives
– Exploration of increased private sector involvement in the secondary mortgage market
2. HUD/FHA:
– Focus on market-driven solutions to affordable housing challenges
– Potential restructuring of FHA programs, including the reverse mortgage program
– Emphasis on reducing regulatory burdens for developers and lenders
– Reevaluation of fair housing enforcement practices
3. CFPB:
– Potential restructuring or dismantling of the agency
– Rollback of regulations implemented during the Biden administration
– Shift towards less aggressive enforcement actions
– Exploration of alternative structures for consumer financial protection
4. GSEs:
– Push for increased private capital in the mortgage market
– Reevaluation of affordable housing goals and Duty to Serve programs
– Potential changes to credit risk transfer programs
– Leveraging Craig Phillips’ expertise at Freddie Mac to inform and potentially accelerate GSE reform efforts
These priorities reflect a broader philosophy of reducing government intervention in the housing market, emphasizing private sector solutions, and scaling back regulations seen as burdensome to industry.
## Implications for Housing and Finance Policy
The appointments and potential changes in leadership signal a significant shift in housing and finance policy under the second Trump administration. Key implications include:
1. Regulatory Landscape: A broad push for deregulation could lead to a more favorable environment for lenders and developers, but may raise concerns about consumer protections and systemic risk.
2. GSE Reform: With Craig Phillips now in a key position at Freddie Mac, efforts to end the conservatorship of Fannie Mae and Freddie Mac could gain new momentum.
3. Affordable Housing: The emphasis on market-driven solutions may challenge traditional affordable housing initiatives, potentially impacting low-income renters and first-time homebuyers.
4. FHA Programs: Potential restructuring of FHA programs could affect seniors’ housing options and lenders’ participation in government-backed lending.
5. Consumer Protection: The potential dismantling or restructuring of the CFPB could lead to a fragmented approach to consumer financial protection.
6. Technology and Innovation: Increased focus on modernization in housing finance could lead to more efficient processes for lenders and borrowers.
7. Market Dynamics: The combination of regulatory changes, GSE reform, and shifts in government programs could lead to significant changes in mortgage product offerings, pricing, and availability.
As the industry adapts to these changes, stakeholders will need to navigate a period of regulatory uncertainty and potential market volatility. The success of the Trump administration’s housing policies will ultimately be judged by their impact on homeownership rates, housing affordability, market stability, and the overall health of the housing finance system.
[^1]: Trump names Scott Turner the new HUD secretary
[^2]: Trump’s presidency signals new regulatory era for mortgages
[^3]: Why GSE reform might look different in a second Trump term
[^4]: Trump could bypass Democratic picks for FDIC Board
[^5]: MBA Statement on the Nomination of Scott Turner as HUD Secretary
[^6]: Trump’s pick to lead HUD has opposed aid programs for the poor
[^7]: Elon Musk Homes In On New Government Target: The CFPB
[^8]: Former FHA commissioner Dana Wade returns to politics
[^9]: Freddie Mac hires Craig Phillips to handle regulatory and conservatorship affairs
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