Promoting Access to Mortgage Credit

[Federal Register Volume 91, Number 52 (Wednesday, March 18, 2026)]

[Presidential Documents]

[Pages 13203-13206]

From the Federal Register Online via the Government Publishing Office [www.gpo.gov]

[FR Doc No: 2026-05384]

Presidential Documents

Federal Register / Vol. 91, No. 52 / Wednesday, March 18, 2026 /

Presidential Documents

[[Page 13203]]

Executive Order 14393 of March 13, 2026

Promoting Access to Mortgage Credit

By the authority vested in me as President by the

Constitution and the laws of the United States of

America, it is hereby ordered:

Section 1. Purpose. Every American seeking to buy a

home should have access to a mortgage from a reliable

lender, at a rate commensurate with his or her

creditworthiness. Over the past two decades, however,

statutory and regulatory changes--including rules

adopted under the Dodd-Frank Act, Public Law 111-203,

and subsequent rulemakings--have increased the

compliance costs of mortgage origination and servicing

and distorted the structure of the mortgage market.

These burdens have contributed to a significant decline

in bank participation in mortgage lending. Community

banks, generally institutions with fewer than $30

billion in assets, have been especially affected. The

regulatory and rule changes have undermined community

banks' businesses, concentrated credit and liquidity

risk outside the banking system, and resulted in

reduced access to credit for some creditworthy

borrowers, including rural households and low- and

moderate-income households

compliance costs of mortgage origination and servicing

and distorted the structure of the mortgage market.

These burdens have contributed to a significant decline

in bank participation in mortgage lending. Community

banks, generally institutions with fewer than $30

billion in assets, have been especially affected. The

regulatory and rule changes have undermined community

banks' businesses, concentrated credit and liquidity

risk outside the banking system, and resulted in

reduced access to credit for some creditworthy

borrowers, including rural households and low- and

moderate-income households. My Administration will

reduce these regulatory burdens to ensure that these

creditworthy borrowers can access the capital required

to purchase a home.

It is the policy of the United States to improve the

availability and affordability of mortgage credit;

tailor rules for community banks and ``smaller banks''

(banks with assets fewer than $100 billion); reduce the

regulatory burden on community banks and otherwise

facilitate community bank engagement in mortgage

activity; foster innovation, growth, and consumer

choice in the mortgage market; modernize origination

and closing standards to reduce lending costs; remove

regulatory distortions to the structure of the mortgage

market and to ensure capital and liquidity frameworks

subject similar credit and liquidity risks to similar

regulation across the system; promote competition among

mortgage lenders of all charter types to drive down

mortgage rates; and strengthen housing-finance

tortions to the structure of the mortgage

market and to ensure capital and liquidity frameworks

subject similar credit and liquidity risks to similar

regulation across the system; promote competition among

mortgage lenders of all charter types to drive down

mortgage rates; and strengthen housing-finance

liquidity.

Sec. 2. Origination and Ability-to-Repay (ATR)/

Qualified Mortgage (QM) Reform. (a) The Consumer

Financial Protection Bureau (CFPB) shall consider, as

appropriate and consistent with applicable law:

(i) proposing amendments to Regulation Z that tailor the following

requirements for smaller banks: ATR and QM requirements (including

potentially a broader QM safe harbor for portfolio loans) and the

requirements of the Truth in Lending Act, Public Law 90-321 (TILA), Real

Estate Settlement Procedure Act, Public Law 93-533 (RESPA), and TILA-RESPA

Integrated Disclosure (TRID) rules;

(ii) replacing TRID timing rules with a materiality-based standard that

preserves consumer clarity and reduces closing delays;

(iii) exempting small-mortgage loans from caps on QM points and fees or, as

appropriate, modifying such caps to support affordability;

(iv) updating regulations regarding banks' reasonable compliance with ATR

and QM underwriting requirements by removing unnecessarily burdensome

elements;

(v) modernizing the right to rescission for mortgage lending, for example,

by enabling increased secure electronic and digital forms and processes;

[[Page 13204]]

(vi) streamlining the requirements applicable to rate-and-term refinancing

under Regulation X mortgage servicing rules; and

(vii) exempting rate-and-term refinancing (including cash-out refinancing)

from rescission rights.

ements;

(v) modernizing the right to rescission for mortgage lending, for example,

by enabling increased secure electronic and digital forms and processes;

[[Page 13204]]

(vi) streamlining the requirements applicable to rate-and-term refinancing

under Regulation X mortgage servicing rules; and

(vii) exempting rate-and-term refinancing (including cash-out refinancing)

from rescission rights.

(b) The Vice Chairman for Supervision of the Board

of Governors of the Federal Reserve System (Federal

Reserve), the Director of the CFPB, the Chairman of the

National Credit Union Administration (NCUA) Board, the

Chairperson of the Board of Directors of the Federal

Deposit Insurance Corporation (FDIC), and the

Comptroller of the Currency shall consider, as

appropriate and consistent with applicable law,

revising supervisory guidance to ensure that:

(i) examiners evaluate mortgage lending based on the effectiveness of the

lender's policies regarding a consumer's ability to repay and prudent

underwriting, rather than the existing focus on process and technical

compliance; and

(ii) good-faith, technical compliance errors are subject to correction-

first supervisory treatment, with enforcement reserved for borrower harm or

repeated misconduct.

Sec. 3. Modernization of Home Mortgage Disclosure Act

(HMDA) Data Collection and Disclosure

pay and prudent

underwriting, rather than the existing focus on process and technical

compliance; and

(ii) good-faith, technical compliance errors are subject to correction-

first supervisory treatment, with enforcement reserved for borrower harm or

repeated misconduct.

Sec. 3. Modernization of Home Mortgage Disclosure Act

(HMDA) Data Collection and Disclosure. (a) The CFPB

shall consider, as appropriate and consistent with

applicable law, proposing amendments to Regulation C to

raise the asset threshold for exemption from HMDA data

collection and reporting requirements for smaller

banks, to exclude inquiries from the scope of HMDA, and

to ensure that disclosures protect privacy and reduce

burdens, including insufficiently tailored, expensive,

and complex software and training needed for reporting

financial institutions.

Sec. 4. Capital and Liquidity Alignment. (a) The Vice

Chairman for Supervision of the Federal Reserve, the

Chairman of the NCUA Board, the Chairperson of the

Board of Directors of the FDIC, the Comptroller of the

Currency, and the Director of the Federal Housing

Finance Agency (FHFA) shall consider, as appropriate

and consistent with applicable law:

Chairman for Supervision of the Federal Reserve, the

Chairman of the NCUA Board, the Chairperson of the

Board of Directors of the FDIC, the Comptroller of the

Currency, and the Director of the Federal Housing

Finance Agency (FHFA) shall consider, as appropriate

and consistent with applicable law:

(i) revising capital regulations, consistent with appropriate risk-

management requirements, to tailor risk weights for all banks, including

community banks and other smaller banks, for portfolio mortgages, servicing

rights, and warehouse lines of credit to the material credit risk of the

exposure;

(ii) modernizing collateral valuation and transfer systems between the

Federal Reserve and Federal Home Loan Banks (FHLBs);

(iii) expanding access to longer-dated FHLB advances tied to residential

mortgage assets;

(iv) creating targeted FHLB liquidity programs for entry-level housing,

owner-occupied purchase loans, and small residential builders;

(v) accelerating collateral boarding and valuation processes through

standardized data and digital documentation; and

(vi) refocusing the FHLBs' Affordable Housing Program on faster-cycle

execution and greater financial leverage for small-scale and owner-occupied

housing projects.

(b) The Director of the FHFA and the Vice Chairman

for Supervision of the Federal Reserve shall consider,

as appropriate and consistent with applicable law,

authorizing FHLBs' intermediate access to the Federal

Reserve's discount window for FHLBs' member depository

institutions under standardized collateral,

operational, and risk-management protocols.

for Supervision of the Federal Reserve shall consider,

as appropriate and consistent with applicable law,

authorizing FHLBs' intermediate access to the Federal

Reserve's discount window for FHLBs' member depository

institutions under standardized collateral,

operational, and risk-management protocols.

(c) Within 120 days of the date of this order, the

Director of the FHFA, in consultation with the heads of

other relevant executive departments and agencies,

shall submit a report to the Assistant to the President

for Economic Policy and the Director of the Office of

Management and Budget on the efficiency of national

housing finance markets. The report shall identify

[[Page 13205]]

recommendations for regulatory or legislative changes

necessary to address any regulatory or oversight gaps.

Sec. 5. Construction and Housing Supply. (a) The Vice

Chairman for Supervision of the Federal Reserve, the

Director of the CFPB, the Chairman of the NCUA Board,

the Chairperson of the Board of Directors of the FDIC,

and the Comptroller of the Currency, shall consider, as

appropriate and consistent with applicable law,

revising supervisory guidance both to exclude one-to

four-family residential development and construction

lending from commercial real estate concentration

guidance and to ensure supervisory expectations support

responsible construction lending by community banks.

appropriate and consistent with applicable law,

revising supervisory guidance both to exclude one-to

four-family residential development and construction

lending from commercial real estate concentration

guidance and to ensure supervisory expectations support

responsible construction lending by community banks.

Sec. 6. Appraisal Modernization. (a) The Vice Chairman

for Supervision of the Federal Reserve, the Director of

the CFPB, the Chairman of the NCUA Board, the

Chairperson of Board of Directors of the FDIC, the

Comptroller of the Currency, and the Director of the

FHFA shall consider, as appropriate and consistent with

applicable law and their statutory authorities:

(i) modernizing appraisal regulations and guidance to expand the use of

alternative valuation models, desktop and hybrid appraisals, and artificial

intelligence valuation tools;

(ii) simplifying appraiser qualification requirements; and

(iii) reducing appraisal requirements for low-risk transactions, including

low loan-to-value refinancing and small-balance loans; and setting clear

appraisal timelines.

(b) The Secretary of Housing and Urban Development

(HUD) and the Secretary of Veterans Affairs (VA) shall

consider, as appropriate and consistent with applicable

law:

ucing appraisal requirements for low-risk transactions, including

low loan-to-value refinancing and small-balance loans; and setting clear

appraisal timelines.

(b) The Secretary of Housing and Urban Development

(HUD) and the Secretary of Veterans Affairs (VA) shall

consider, as appropriate and consistent with applicable

law:

(i) aligning appraisal standards between the Federal Housing Administration

and VA Home Loan Program where risk is comparable;

(ii) clarifying the distinction in an appraisal inspection between safety

and habitability concerns that necessitate pre-closing repairs versus

cosmetic concerns; and

(iii) expanding post-closing repair flexibility.

Sec. 7. Digital Mortgage Modernization. (a) The

Secretary of Agriculture, the Secretary of HUD, the

Secretary of VA, and the Director of the FHFA shall

consider, as appropriate and consistent with applicable

law:

(i) eliminating unnecessary wet-signature requirements for disclosures,

applications, closing documents, and similar documents;

(ii) standardizing acceptance of electronic signatures, e-notes, and remote

online notarization; and

(iii) promoting digital mortgage standards.

Sec. 8. Servicing and Supervisory Certainty. (a) The

Secretary of HUD, the Vice Chairman for Supervision of

the Federal Reserve, the Director of the CFPB, the

Chairman of the NCUA Board, the Chairperson of the

Board of Directors of the FDIC, and the Comptroller of

the Currency shall consider, as appropriate and

consistent with applicable law:

a) The

Secretary of HUD, the Vice Chairman for Supervision of

the Federal Reserve, the Director of the CFPB, the

Chairman of the NCUA Board, the Chairperson of the

Board of Directors of the FDIC, and the Comptroller of

the Currency shall consider, as appropriate and

consistent with applicable law:

(i) aligning supervisory expectations to support portfolio mortgage

servicing as a core community banking function; extending cure-first

standards to good-faith servicing errors; simplifying loss mitigation

requirements; and issuing a proposed rule providing exemptions from complex

mortgage services for smaller banks; and

(ii) ensuring that supervisory evaluations of performing, prudently

underwritten portfolio loans do not focus on technical defects or rely on

evolving supervisory interpretations.

Sec. 9. Enforcement. (a) The Vice Chairman for

Supervision of the Federal Reserve, the Director of the

CFPB, the Chairman of the NCUA Board, the Chairperson

of the Board of Directors of the FDIC, and the

Comptroller of the Currency shall consider, as

appropriate and consistent with applicable law,

promulgating a policy against enforcement actions for

violations of consumer financial laws that:

[[Page 13206]]

CFPB, the Chairman of the NCUA Board, the Chairperson

of the Board of Directors of the FDIC, and the

Comptroller of the Currency shall consider, as

appropriate and consistent with applicable law,

promulgating a policy against enforcement actions for

violations of consumer financial laws that:

[[Page 13206]]

(i) discourages imposing civil monetary penalties, except where the

underlying violations are willful, knowing, or reckless;

(ii) considers good corporate conduct, including a bank's correction of

good-faith, technical compliance errors; and

(iii) allows institutions a reasonable opportunity for self-identification

and remediation of appropriate compliance matters.

Sec. 10. Duplicative or Unnecessary Licensing

Requirements. The Vice Chairman for Supervision of the

Federal Reserve, the Director of the CFPB, the Chairman

of the NCUA Board, the Chairperson of the Board of

Directors of the FDIC, and the Comptroller of the

Currency shall consider, as appropriate and consistent

with applicable law, eliminating duplicative or

unnecessary requirements regarding licensing or

registration for mortgage loan officers of any smaller

bank.

Sec. 11. General Provisions. (a) Nothing in this order

shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or

the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget

relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with

applicable law and subject to the availability of

appropriations.

uthority granted by law to an executive department or agency, or

the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget

relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with

applicable law and subject to the availability of

appropriations.

(c) This order is not intended to, and does not,

create any right or benefit, substantive or procedural,

enforceable at law or in equity by any party against

the United States, its departments, agencies, or

entities, its officers, employees, or agents, or any

other person.

(d) The costs for publication of this order shall

be borne by the Department of the Treasury.

(Presidential Sig.)

THE WHITE HOUSE,

March 13, 2026.

[FR Doc. 2026-05384

Filed 3-17-26; 11:15 am]

Billing code 4810-25-P