2026-05384Presidential DocumentWallet

Executive Order Boosts Rural Mortgage Access by Cutting Red Tape

Published Date: 3/18/2026

Presidential Document

Summary

This new order makes it easier for community and smaller banks to offer home loans by cutting red tape and updating rules. It helps more people, especially in rural and low-income areas, get fair mortgage rates and better access to credit. These changes start rolling out soon and aim to lower costs and boost competition in the mortgage market.

Analyzed Economic Effects

13 provisions identified: 10 benefits, 1 costs, 2 mixed.

Expand Mortgage Access for Creditworthy Borrowers

The order directs agencies to reduce regulatory burdens so more creditworthy borrowers — including rural households and low- and moderate-income households — can get mortgages at rates tied to their credit. The order calls out community banks (generally under $30 billion in assets) and “smaller banks” (under $100 billion) as targets for tailored rules to improve availability and affordability.

Tailored ATR/QM Rules for Smaller Banks

The Consumer Financial Protection Bureau (CFPB) is directed to consider amendments to Regulation Z to tailor Ability-to-Repay (ATR) and Qualified Mortgage (QM) requirements for smaller banks, including possibly broader QM safe harbors for portfolio loans. This is aimed at reducing compliance burdens on banks with fewer than $100 billion in assets.

Replace TRID Timing With Materiality Standard

The CFPB is asked to consider replacing Truth in Lending / RESPA Integrated Disclosure (TRID) timing rules with a materiality-based standard to preserve consumer clarity and reduce closing delays. The goal is to cut timing-related delays at closing.

Modify QM Points and Fees Caps for Small Loans

The CFPB is directed to consider exempting small-mortgage loans from caps on Qualified Mortgage (QM) points and fees or to modify those caps to support affordability. This seeks to make small loans more affordable and workable for lenders to offer.

Exempt Refinance From Rescission Rights

The order directs consideration of exempting rate-and-term refinancing, including cash-out refinancing, from rescission rights under mortgage rules.

Targeted FHLB Liquidity Programs for Entry-Level Housing

The order directs consideration of creating targeted Federal Home Loan Bank (FHLB) liquidity programs for entry-level housing, owner-occupied purchase loans, and small residential builders, and expanding access to longer-dated FHLB advances tied to residential mortgage assets.

Appraisal Rules Modernized to Speed Low‑Risk Loans

Agencies are to consider expanding use of alternative valuation models, desktop and hybrid appraisals, and AI tools; simplifying appraiser qualifications; and reducing appraisal requirements for low-risk transactions, including low loan-to-value refinancing and small-balance loans.

Digital Mortgage Standards and E-Signatures

The order asks agencies to consider eliminating wet-signature requirements, standardizing acceptance of electronic signatures, e-notes, and remote online notarization, and promoting digital mortgage standards to modernize mortgage origination and closing.

Servicing Certainty, Cure‑First Treatment, and Simplified Loss Mitigation

Supervisors are directed to align expectations to support portfolio mortgage servicing by community banks, extend cure-first standards to good-faith servicing errors, simplify loss mitigation requirements, and consider exemptions from complex mortgage servicing rules for smaller banks.

Modernize Right-to-Rescission With Digital Tools

The order directs agencies to modernize the right to rescission in mortgage lending by enabling secure electronic and digital forms and processes, which could speed transactions and allow digital rescission handling.

Raise HMDA Reporting Thresholds for Smaller Banks

The CFPB is directed to consider raising the asset threshold for exemption from Home Mortgage Disclosure Act (HMDA) reporting for smaller banks and to exclude inquiries from HMDA scope to reduce reporting burdens and privacy risks for smaller institutions.

Enforcement Policy Favoring Correction-First Approach

The order directs regulators to consider a policy discouraging civil monetary penalties except for willful, knowing, or reckless violations; to consider good corporate conduct and correction of good-faith, technical errors; and to allow institutions reasonable opportunity for self-identification and remediation.

Eliminate Unnecessary Licensing for Loan Officers

Regulators are asked to consider eliminating duplicative or unnecessary licensing or registration requirements for mortgage loan officers of smaller banks to reduce compliance costs and licensing burdens for those institutions.

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Key Dates

Effective Date
Published Date
3/13/2026
3/18/2026

Department and Agencies

Department
Independent Agency
Agency
Executive Office of the President
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