Mortgage Research Network Podcast

Welcome to the Mortgage Research Network Podcast. Just a note that this podcast audio is AI-generated but based on content that was produced by people. And your hosts, Tim and Craig, are real. Without further ado, let's get into today's topic.

I'm your host, Tim Lucas, editor of MortgageResearch.com and a former mortgage professional, and with me is Craig Berry, a mortgage originator with 25 years experience. Today we're talking about Trump's potential national housing emergency declaration. The Treasury Secretary Scott Bessent just dropped this bombshell, very non-chalantly, I might add, that could reshape how millions of Americans access housing.

Well that's quite the statement from Secretary Bessent. The timing really makes you wonder what they're seeing behind the scenes that's got them considering such drastic measures.

You know what's fascinating about this? Under the 1976 National Emergencies Act, presidents have access to pretty extraordinary powers and can bypass Congress. It's like having this massive toolkit that's rarely been used for housing issues before.

But those powers aren't unlimited, right? The courts have shown they're willing to step in when emergency actions go too far.

Exactly. and that's what makes this whole situation so complex. We're seeing millions of Americans spending more than they should on housing, both rent and mortgages.

So what specific solutions are they actually considering?

Well, Bessent was short on details, so the White House hasn't clarified what they might do under a housing emergency declaration. But there are speculations of what might be done. That could include removing tariffs on building materials such as Canadian lumber. Then there's the possibility of reducing mortgage rates, though that's WAY more complicated than it sounds. There's talk of streamlining zoning laws at a federal level, although that sounds very complex as well.

From what I understand, Project 2025 basically puts the brakes on any federal intervention in local zoning, right?

Oh man, that's EXACTLY the contradiction we're dealing with. The Administration just can't go down some roads. They're identifying these potential solutions but then immediately hitting walls, either political, practical, or both. Like that idea about selling federal land for housing? Sounds great until you realize most of it's in Alaska and other areas where there's barely any housing demand.

You know what's particularly interesting about this whole situation? The labor shortage angle.

Right. we've got this massive need for construction workers, but current immigration policies are making it more difficult for builders to maintain the workforce they had in the past. And here's where it gets really tricky. how do you carve out exceptions for construction workers without other industries demanding the same treatment?

The closing costs issue seems like another dead end too.

Exactly. everyone wants to reduce them, bu look at the components like lenders, title companies, insurers, appraisers. there's no evidence of price gouging. Without government subsidies or some potentially risky deregulation, meaningful cuts just aren't realistic.

Well that brings us back to the fundamental question. can emergency powers really address what's essentially a long-term structural problem?

That's the million-dollar question, isn't it? Emergency powers might help with immediate issues like tariffs or certain regulations, but the bigger problems like the supply-demand imbalance, labor shortages, zoning restrictions - those require long-term, comprehensive solutions.

Looking ahead, what should people be watching for?

I would watch for any clarification or statement from the President or White House on what might be implemented under a national housing emergency. This somewhat off-hand statement by Bessent has media outlets going crazy, but there's really not enough detail given yet. The White House, hopefully, will come out with a follow-up statement soon.

That's about all the time we have for this topic, but we go into even more detail on the site. To learn more, go to Mortgage research.com and type national housing emergency in the search bar. We'll see you next time on the Mortgage Research Network Podcast.