On March 13, 2026, President Trump signed an Executive Order titled "Promoting Access to Mortgage Credit" that directs federal regulators to modernize compliance requirements for mortgage lenders. The order acknowledges that current reporting and underwriting rules impose significant operational burdens while calling for a shift toward more effective, less process-heavy oversight.
For lenders who have struggled with the complexity of current compliance frameworks, this represents a potentially significant regulatory shift. Here's what you need to know.
The Consumer Financial Protection Bureau (CFPB) has been directed to modernize Home Mortgage Disclosure Act (HMDA) reporting requirements. The order specifically recognizes that HMDA data collection and reporting impose substantial operational and cost burdens on mortgage lenders, particularly smaller institutions.
The goal is to reduce compliance burdens while still protecting borrower privacy. However, key questions remain unanswered—including how the CFPB will handle reportable pre-approvals versus general inquiries, and whether the agency has sufficient regulatory authority to modify HMDA thresholds without Congressional action.
The Executive Order directs the CFPB to propose amendments to regulations under the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA). Potential changes include:
These proposed changes suggest a move away from rigid, process-oriented compliance toward standards that evaluate whether lenders have effective policies in place to assess ability-to-repay and maintain prudent underwriting.
Perhaps most significant for day-to-day operations, bank regulators are directed to apply a "correction-first" treatment for good-faith technical compliance errors. Under this approach, enforcement actions would be reserved for cases involving actual borrower harm or repeated misconduct.
Civil monetary penalties would be reserved for willful, knowing, or reckless violations, while giving institutions reasonable opportunity for self-identification and remediation of compliance issues. This represents a marked shift from the current enforcement environment, where technical violations can trigger significant penalties even without evidence of consumer harm.
The order also directs HUD, VA, FHFA, and USDA to modernize digital mortgage processes by eliminating unnecessary wet-signature requirements and standardizing electronic signatures, e-notes, and remote online notarization. For lenders who have invested in digital infrastructure, this could finally level the playing field and accelerate adoption industry-wide.
While the Executive Order sets the direction, actual regulatory changes will take time. The CFPB and other agencies must propose specific amendments, accept public comments, and finalize new rules—a process that typically takes months or longer.
In the meantime, lenders should:
The mortgage compliance landscape appears poised for significant change. Whether these reforms deliver on their promise of reducing burden while maintaining consumer protections will depend on how regulators translate this high-level directive into concrete rule amendments.