Mortgage Bankers Release Plan to Lower Borrowing Costs for Homebuyers

A wide range of reforms is available to make housing more affordable, without requiring Congress to act, the Mortgage Bankers Association has said.During MBA's annual convention in Chicago, the trade group released a wide-ranging roadmap to improving housing affordability, including reforms to credit scoring to lower the costs of a mortgage, new rules around loan programs, and new financing mechanisms to build affordable housing.MBA leaders touted significant progress in legislative advancements, including the comprehensive 21st Century Road to Housing Act, a housing reform bill. They also touted advances for manufactured housing and off-site construction, seen as a cheaper method of building homes.But with Americans urgently concerned about affordability, MBA said there are more levers to pull. “The goal is straightforward: strip away unnecessary costs and complexity that ultimately show up in a higher mortgage rate, excessive closing costs, or a higher rent,” said Owen Lee, MBA's 2027 Chairman.Rather than wait for rare Congressional consensus, MBA highlighted rules that don't require new laws. For instance, replacing Fannie Mae and Freddie Mac's current tri-merge credit reporting...