Overview
- FHFA Director Bill Pulte said on X that the administration is working on a 50-year home loan after President Trump posted a graphic contrasting a 30-year product with a 50-year option.
- The White House has not provided implementation details, and under Dodd‑Frank’s Qualified Mortgage rule, standard government‑backed loans cannot exceed 30 years without regulatory or legislative changes.
- Analysts note longer terms would trim monthly payments but raise lifetime interest costs, slow equity build‑up and could push prices higher, increasing risks to borrowers and the financial system.
- If Fannie Mae or Freddie Mac were to buy such loans, the GSEs would need new securitization structures and investor demand is uncertain, complicating any rollout.
- Reaction was swift and divided, with criticism from some Republicans including Reps. Marjorie Taylor Greene and Thomas Massie, as affordability pressures persist with elevated rates and higher mortgage burdens.