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Trump’s 50-Year Mortgage Idea Draws Pushback as FHFA Says It Is Studying the Option

Legal constraints under Dodd-Frank raise doubts about a rollout.

Overview

  • Trump floated the longer-term loan over the weekend, and FHFA Director Bill Pulte said the agency is “working on” the concept and called it a “complete game changer.”
  • Trump defended the idea on Fox News, calling it “not even a big deal” that could lower monthly payments by stretching them over more years.
  • CBS News reported some officials were unhappy the idea was publicized before full vetting, reflecting internal confusion over timing and the president’s level of commitment.
  • Analyses show potential monthly savings of a few hundred dollars but sharply higher lifetime interest and slower equity building, with examples estimating interest costs 80% higher or more than a 30-year loan.
  • The Dodd-Frank framework caps qualified-mortgage terms at 30 years, potentially requiring new rules or legislation, while economists and several Republicans argue the core problem is limited housing supply rather than loan terms.