DS News

44 THE STATE OF HOUSING AFTER 500 DAYS e Trump administration recently celebrated 500 days in office. How has the landscape of the housing industry changed during that time? In this piece, DS News will walk you through the key legislation and nominations that have impacted the industry since January 2017. e Big Picture e tax reform bill, perhaps the administration's key piece of legislation passed in these 500 days, was signed into law in December 2017. While the bill had major implications for many industries, several key provisions impacted the housing industry. From downsized mortgage interest- rate reduction and limits on property tax deductions to tax-break stays for homesellers, the $1.4 trillion tax-cut bill impacted homeowners, buyers, and sellers. While the fall in unemployment is part of a larger revival in jobs predating the current administration, the latest numbers from the Bureau of Labor Statistics indicated that the unemployment rate had fallen to 3.8 percent by the end of April. For the housing industry, which continues its struggle with the supply side, the latest job numbers also meant an increase in construction labor. e latest jobs report indicated that jobs in construction had risen by 286,000 over the past 12 months. When looking at the quality of life and housing across the country, the Organization for Economic Cooperation's Better Life Index indicated that the U.S. ranked among the top countries in housing, income, and wealth, roughly at the same rank as when President Trump was sworn into office. A Look at Legislation In May, the Dodd-Frank Reform bill— known officially as the Economic Growth, Regulatory Relief, and Consumer Protection Act—was signed into law by President Trump. e bill seeks to evolve and streamline regulations put in place by the 2010 Dodd- Frank Act and was passed by the House of Representatives on May 22 by a vote of 258-159. "is is a moment years in the making, and I thank my colleagues in the Senate and the House of Representatives for their partnership and contributions to this effort over the years," said Sen. Mike Crapo (R-Idaho), Chairman of the Senate Banking Committee. "is step toward right-sizing regulation will allow local banks and credit unions to focus more on lending, in turn propelling economic growth and creating jobs on Main Street and in our communities. is is an important moment for small financial institutions, small businesses, and families across America." While the Dodd-Frank reform bill was still being discussed, the House of Representatives passed a new bill in April that would streamline the Volcker Rule. Implemented as part of the larger Dodd-Frank Wall Street Reform and Consumer Protection Act, the Volcker Rule limits the types of speculative investments banks can participate in as a way to prevent some of the factors that contributed to the 2008 financial crisis. is new House bill, passed with a vote of 300-104, would make the Federal Reserve the sole regulator for Volcker Rule compliance. At the time, some proponents of the Volcker Rule called for the bill to be rolled into the larger Dodd- Frank reform bill. However, the bill remains a separate piece of legislation and moved forward recently after the SEC voted on the overhaul. e SEC was the last of the five financial agencies required to sign off on the changes. According to Bloomberg, the changes are being viewed as a significant win for banks that have "long argued the original rule was overly complex and costly to comply with." e Names in the Game In the 500 days since the administration took office, many of President Trump's nominees have been appointed to key positions. From the Fed Chairman to the most recent appointment of the head of the Federal Housing Administration (FHA) (a position that had been vacant for the past four years), the nominations and appointments made by this administration are set to have a far- reaching effect on the housing industry. Most recently, in May, Brian Montgomery, who had been nominated by the President for the position of Assistant Secretary for Housing-Federal Housing Commissioner, U.S. Department of Housing and Urban

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