President Donald Trump signed two executive orders on Thursday (local time) aimed at reviving the American dream of homeownership. These orders are designed to ease bureaucratic regulations that have made it difficult and costly for millions of Americans to obtain mortgages.

The measures target several provisions related to the 2010 Dodd-Frank Act, which the White House claims have pushed smaller community banks out of the mortgage business and stifled competition.

Enacted in 2010 in response to the 2007-2008 financial crisis, the Dodd-Frank Wall Street Reform and Consumer Protection Act was intended to ensure financial market stability but has been the subject of considerable debate and has undergone multiple amendments.

The Trump administration stated that first-time homebuyers, rural households, and low- and middle-income Americans have been most affected by these regulations.

Essentially, the orders direct regulators to streamline the mortgage process, focus less on paperwork, and concentrate more on whether borrowers can actually afford the loans.

They instruct the Consumer Financial Protection Bureau to ease regulations on smaller lenders, emphasize sound, common-sense lending, and reduce complex reporting requirements.

These changes are expected to lower the cost of borrowing.

The executive orders aim to reduce lending costs and speed up processing. They encourage the expanded use of digital tools, such as electronic signatures and online notarization, to help speed up the completion of transactions.

They also call for streamlining underwriting rules, particularly for lower-risk loans, to reduce delays and costs.

Another key element is expanding lenders' access to funding through the Federal Home Loan Bank System. This will make it easier to provide affordable mortgages, including for first-time homebuyers and those purchasing lower-priced homes.

The executive orders are part of President Trump's broader efforts to address housing affordability, including limiting single-family home purchases by large investors and lowering mortgage rates with federal support.

By Sung Ku Hong, Editor-in-Chief, NNP / Special Correspondent NNP info@newsandpost.com