Big banks push for simpler mortgage rules as housing market slows

Big banks are urging the Trump medication to simplify regulations relating to owe indebtedness origination, servicing, and securitization successful the anticipation that these reforms whitethorn little costs and boost lending enactment successful the struggling US lodging market.

"In presumption of mortgages, reducing unnecessary regulations would alteration homeownership costs," JPMorgan Chase (JPM) CEO Jamie Dimon wrote successful his yearly shareholder letter.

"Streamlining indebtedness origination and servicing standards, reducing superior requirements and simplifying securitization rules would trim the outgo of mortgages without making them riskier. These elemental reforms could little the outgo of mortgages by 70–80 ground points."

This propulsion for betterment comes arsenic JPMorgan's owe measurement fell to $11.2 cardinal successful the archetypal 4th ending March 31, down from $14.2 cardinal successful the 4th fourth of 2024. Meanwhile, location lending from the bank's retail transmission fell to $9.4 cardinal from $12.1 cardinal successful the 4th fourth of 2024.

Other banks person besides struck a akin code during caller league calls pursuing quarterly earnings.

Bank of America (BAC) CEO Brian Moynihan told investors during the company’s archetypal 4th net telephone this week that helium is hopeful for alteration arsenic caller policymakers instrumentality office.

"It’s critically important that we get this rebalance," Moynihan said. "Sometimes the regularisation gets successful the mode of that.” At Bank of America, location lending held dependable astatine $254 cardinal successful the archetypal quarter, unchanged from the erstwhile quarter.

Wells Fargo (WFC) CEO Charles Scharf echoed Dimon’s sentiment, telling analysts past week that the slope supports the administration’s deregulatory push. Scharf said the projected changes would let "more loans, instrumentality much deposits, and supply much liquidity to the markets portion preserving robust regulatory oversight."

Wells Fargo’s owe measurement fell to $4.4 cardinal successful the archetypal 4th ending March 31, down from $5.9 cardinal the erstwhile quarter, further underscoring the broader slowdown successful lodging financing activity.

Data from the National Association of Realtors showed pending location sales, a guardant looking indicator of location income based connected declaration signings, grew 2% successful February. However, pending transactions are down 3.6% twelvemonth implicit year, underscoring the ongoing challenges successful the lodging market.

The mean complaint connected a 30-year fixed owe stood astatine 6.92% arsenic of past week, not acold from the highest levels seen implicit the past respective years.

Read more: Best low- and no-down-payment owe lenders of 2025