Earlier this week, Federal Housing Finance Agency (FHFA) Director Bill Pulte met with President Trump to propose the creation of a 50-year mortgage to boost housing affordability. However, White House officials are reportedly “furious” with the idea, according to Politico.
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“Anything that goes before POTUS needs to be vetted,” said a person present at the meeting. “And a lot of times with Pulte they’re not. He just goes straight up to POTUS.”
Pulte’s 50-Year Mortgage Plan Sparks Criticism
Sources familiar with the situation warned that 50-year mortgages could raise housing prices in the long run. It would also result in a slower buildup of ownership equity due to larger interest payments at the beginning of the mortgage. National Association of Realtors chief economist Lawrence Yun added that longer-dated mortgages wouldn’t “address the true cause of today’s affordability challenges.”
Pulte’s proposition resulted in outrage from several business leaders and lawmakers. One source added that “it’s safe to assume that his days are numbered” in a reference to Pulte. Pulte has a close relationship with Trump, although senior administration officials are allegedly growing frustrated with the FHFA head.
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