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White House Explores 50-Year Home Loans as FHFA Says Plan Is in the Works

Dodd-Frank limits qualified mortgages to 30 years, leaving the timeline uncertain and prompting warnings about higher lifetime interest.

Overview

  • FHFA Director Bill Pulte said the agency is working on a 50-year mortgage concept, but no policy design, rollout details or official White House release has been provided.
  • Analysts note that current qualified‑mortgage rules born from Dodd‑Frank prohibit 40‑ and 50‑year terms, suggesting regulatory changes and possibly congressional action would be required.
  • Housing economists say extending terms would trim monthly payments yet substantially increase total interest paid and slow equity buildup, with potential default and interest‑rate risks.
  • Experts caution that without boosting housing supply, greater borrowing capacity could push prices higher and offset any monthly‑payment relief for first‑time buyers.
  • Reaction has been mixed, including opposition from Rep. Marjorie Taylor Greene, while questions persist over lender participation, investor appetite and whether non‑QM versions would carry higher rates.