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Trump Defends 50-Year Mortgage Idea as FHFA Says It Is Working on Concept

The floated idea lacks details, requiring significant regulatory and industry changes.

Overview

  • President Trump told Fox News the longer loan would simply lower monthly payments, calling it “not even a big deal” that “might help a little bit.”
  • FHFA Director Bill Pulte posted that the agency is working on a 50-year mortgage and exploring assumable or portable loans, while the White House offered support but provided no specifics.
  • CBS reported some White House officials were unhappy the idea surfaced without full vetting, even as economic aides discussed longer terms in broader affordability talks.
  • Housing economists warn monthly savings would be modest while total interest costs would soar and equity would build far more slowly, with potential for higher rates and greater negative-equity risk.
  • Dodd-Frank qualified-mortgage rules cap terms at 30 years, suggesting legislation or regulatory changes plus lender and investor buy-in would be needed before any new product could launch.