Housing Affordability Takes Center Stage

ALTA AND TITLE INDUSTRY PROFESSIONALS are closely watching developments in federal housing policy as the White House unveiled an executive order on housing affordability. Reinforcing the administration’s focus on housing, the topic was part of President Donald Trump’s speech during his address at the World Economic Forum (WEF), which was held Jan. 19-23 in Davos, Switzerland. “Homes are built for people, not for corporations,” President Trump said. “It’s just not fair to the public. They are not able to buy a house.”

On Jan. 20, a day before the forum, President Trump issued an executive order aimed at curbing large institutional investors from buying up single-family homes. The order, titled “Stopping Wall Street from Competing with Main Street Homebuyers,” directs federal agencies to take steps that would prioritize individual owner-occupants over large institutional investors in the acquisition of single-family homes.

The executive order, which Trump mentioned during his Davos speech, underscores the administration’s view that homeownership has become increasingly out of reach for prospective buyers due to high inflation, elevated interest rates and rising home prices. It singles out large institutional investors for buying up single-family homes, arguing that their vast financial resources give them an unfair advantage over firsttime and middle-class homebuyers.

In the order’s opening section, the White House states, “Hardworking young families cannot effectively compete for starter homes with Wall Street firms and their vast resources. Neighborhoods and communities once controlled by middle-class American families are now run by faraway corporate interests.”

The order tasks several federal departments and agencies with issuing guidance and reviewing existing rules within specified timeframes:

• Within 30 days, the Treasury Secretary must develop definitions of “large institutional investor” and “single-family home” to guide implementation.
• Within 60 days, agencies including HUD, the Department of Agriculture, the Department of Veterans Affairs, the General Services Administration and the Federal Housing Finance Agency must issue guidance to limit federal programs from facilitating sales, insurance, guarantees, securitization or other support for institutional purchases that could otherwise go to individual owner-occupants.
• The order also calls on the Attorney General and the Federal Trade Commission Chairman to review large-scale acquisitions of single-family homes for potential anti-competitive effects and to prioritize enforcement actions where appropriate.
• The HUD Secretary is directed to require greater ownership disclosures for single-family rentals participating in federal housing assistance programs to identify any involvement of institutional investors.

Additionally, the White House will prepare legislative recommendations to codify the policy so that large institutional investors do not acquire single-family homes that could otherwise be purchased by families.

In an accompanying fact sheet, the White House framed the order as part of a broader agenda to make homeownership more accessible for families and to counteract what it describes as Wall Street’s increasing role in the housing market. The fact sheet states that institutional buyers have reduced the supply of homes available to owner-occupants and emphasizes federal housing programs should “put American families first.”

Importantly, the executive order does not outright ban institutional investors from purchasing single-family homes. Instead, it instructs federal entities to restrict federal support and facilitation for these purchases where legally permissible and to scrutinize investor behavior for anti-competitive effects.

ALTA will be monitoring as agencies issue guidance and define the key terms that will determine the reach and effect of this policy.

Additional Housing Affordability Proposals

In addition to the executive order, the administration is considering a suite of housing measures intended to help first-time buyers and address affordability, a critical objective. These include proposals such as:

• Potential changes to mortgage products, including ideas like assumable or “portable” mortgages that could make it easier for buyers to take existing low-rate loans with them when purchasing a new home.
• Expanding the uses of retirement savings vehicles (such as 401(k) or 529 withdrawals) for down payments without penalties.
• Fannie Mae and Freddie Mac purchasing $200 billion in mortgage-backed securities (MBS).
• Extending the depreciation tax deduction to homeowners.

Davos: A High-profile Stage for Housing Policy

President Trump’s appearance at the WEF—a gathering of global political and business leaders—provided another platform to articulate his administration’s housing agenda on the world stage. Participation in Davos underscored the importance the White House places on economic policy and housing as part of its broader strategy.

Some of the proposals being discussed, while politically popular in some quarters, have been met with questions regarding their likelihood of materially expanding housing supply or affordability. For instance, according to analysts:

• Institutional investors of single-family homes own a relatively small share of the total U.S. housing stock (estimated near 1% nationally), meaning a ban on their purchasing additional properties is unlikely to dramatically increase home availability or lower prices.
• Experts caution that restrictions on investor home-buying could have mixed effects on housing supply and rental markets, potentially complicating affordability outcomes in some regions.

“For the title industry, these developments may be associated with changes in transaction activity, regional pricing trends and refinancing levels, all of which are relevant to volume forecasting and business forecasting,” said ALTA CEO Morton.

Title Insurance and Market-risk Considerations

Title professionals should also consider how possible affordability actions intersect with broader housing finance structures, including the roles of Fannie Mae and Freddie Mac and mortgage liquidity, Morton added.

Any federal policy that alters lending practices, mortgage eligibility or investment participation can ripple through real estate closings and title risk. For example:

• Continued use of unregulated alternatives to title insurance, including through the FHFA’s Title Acceptance Pilot and attorney opinion letters (AOLs).
• Changes in mortgage product availability could create new workflows or compliance needs for title and settlement agents.
• Policies affecting investor participation might shift buyer demographics or transaction types, altering title search complexity or title insurance demand.
• Executive actions that influence interest rates or borrowing costs—even modestly—can affect refinance volumes and new purchase closings.

Because the specifics of the executive order are still in flux, title professionals are encouraged to track policy releases closely and prepare for a range of scenarios.