Mortgage policy faces tight runway in split Washington

Housing and mortgage industry leaders say there is room for housing policy to move in Congress even as Washington, D.C., divides power between a Democratic-controlled House and Senate and a Republican-led White House.Democrats captured both chambers on Tuesday night, but any housing bills under the new leadership will need support from President Donald Trump and enough Republican votes to clear the Senate. “Voters made it clear that affordability is a central concern, and housing is the biggest line item in most family budgets,” said Isaac Boltansky, head of public policy at Pennymac. “The ROAD to Housing Act laid a solid foundation, and we believe lawmakers on both sides of the aisle should work on a ROAD to Housing 2.0 package that builds on it and helps more families buy and keep a home.” Asked what should be included in a 2.0 package, Boltansky cited the lock-in effect created by capital gains taxes, which can discourage homeowners from selling, and the Neighborhood Homes Investment Act as a “good starting point.” The Mortgage Bankers Association (MBA) said in a statement that housing remains a bipartisan issue and it will “work with new and returning lawmakers as well as the T...