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Show Notes
Today on Real Estate Backstage, we discuss Donald Trump’s nominees for the Department of Housing and Urban Development (HUD) and the Federal Housing Finance Agency (FHFA) … a record-breaking number of executive orders were signed on inauguration day … Trump demands lower interest rates in an address to the World Economic Forum … and the New Mexico MLS now requires floor plans on all listings.
Scott Turner’s Senate Hearing
According to RISMedia:
“On Thurs., Jan. 16, the Senate Committee on Banking, Housing and Urban Affairs held a confirmation hearing for Scott Turner, Trump’s nominee to lead the Department of Housing and Urban Development (HUD).
Turner previously served as executive director of the White House Opportunity and Revitalization Council from 2019 to 2021 during the first Trump administration. In this role, he helped oversee “Opportunity Zones,” or low-income areas designated to give tax benefits to investors so as to spur economic investment within those areas. Opportunity Zones were first established by the 2017 Tax Cuts and Jobs Act and, as of August 2024, the Zones have seen median home price growth. Since 2023, Turner has served as the “chief visionary officer” of JPI, a multi-family housing developer.
Ahead of the hearing, on Tues., Jan. 14, the Mortgage Bankers Association (MBA) sent a letter to the Senate committee expressing support for Turner’s nomination and encouraging his swift confirmation. The letter was co-signed by several other real estate trade groups, including the National Association of REALTORS® (NAR).
‘With the U.S. in the midst of a housing affordability crisis,’ read the MBA’s letter, ‘HUD is poised to play a crucial role in addressing our nation’s housing shortage and ensuring all Americans have access to safe, decent and affordable homes. Mr. Turner understands the value of strengthening public-private partnerships and collaborating with stakeholders to expand the supply of housing. Equally important, he is passionate about the need to target investment to traditionally underserved communities.’
The current unaffordability of housing in the U.S. was a dominant topic during the hearing, as senators questioned Turner about his commitment to upholding or revising existing HUD programs so as to best respond to current problems.
Turner largely declined to give specific commitment on programs, often returning to the idea that he would “take inventory” of HUD’s existing policy upon being confirmed and work to adjust the department’s strategy from there. During his questioning by Senator Mike Rounds (R-SD), Turner said he will ask the questions, ‘Is this (policy) helping the mission of HUD or is it not? Is it helping to build more affordable housing or not?’
In later questioning from Senator Bill Hagerty (R-TN), Turner said his goals in leading HUD will be “efficiency, transparency and accountability.”
(Source: RISMedia.com)
Bill Pulte Nominated to Lead the Federal Housing Finance Agency
According to Inman:
“In what’s viewed as a potential step toward privatizing Fannie Mae and Freddie Mac, President-Elect Donald Trump has nominated private equity CEO and philanthropist Bill Pulte as head of the mortgage giants’ federal regulator.
Federal Housing Finance Agency Director Sandra Thompson, who has led the FHFA since June 2021, plans to step down Jan. 19. Bill Pulte … [is] the grandson of homebuilder PulteGroup’s founder William J. Pulte. Although no longer affiliated with the company, in 2016 Pulte helped his grandfather oust PulteGroup Chairman and Chief Executive Officer Richard Dugas and served on the company’s board of directors until May 2020.”
(Source: Inman.com)
Trump’s Executive Orders
Shortly after the inauguration, Trump began signing a flurry of executive orders, covering everything from taking action to close the southern border, end DEI initiatives within the Federal government, rename the Gulf of Mexico to the Gulf of America, and address the affordability crisis in the U.S. housing market.
Here’s a piece of one of Trump’s executive orders:
“I hereby order the heads of all executive departments and agencies to deliver emergency price relief, consistent with applicable law, to the American people and increase the prosperity of the American worker. This shall include pursuing appropriate actions to: lower the cost of housing and expand housing supply; eliminate unnecessary administrative expenses and rent-seeking practices that increase healthcare costs; eliminate counterproductive requirements that raise the costs of home appliances; create employment opportunities for American workers, including drawing discouraged workers into the labor force; and eliminate harmful, coercive ‘climate’ policies that increase the costs of food and fuel … Moreover, many Americans are unable to purchase homes due to historically high prices, in part due to regulatory requirements that alone account for 25 percent of the cost of constructing a new home according to recent analysis. In sum, unprecedented regulatory oppression from the Biden Administration is estimated to have imposed almost $50,000 in costs on the average American household, whereas my first-term agenda reduced regulatory costs by almost $11,000 per household. It is critical to restore purchasing power to the American family and improve our quality of life.”
(Source: HousingWire.com)
Trump Demands Lower Interest Rates
According to Reuters:
“U.S. President Donald Trump demanded OPEC lower oil prices and the world drop interest rates in a speech to global business and political leaders and warned them they will face tariffs if they make their products anywhere but the U.S. ‘I’ll demand that interest rates drop immediately. And likewise, they should be dropping all over the world,’ Trump said via video to the World Economic Forum in Davos, Switzerland, on Thursday. ‘I’m also going to ask Saudi Arabia and OPEC to bring down the cost of oil.’”
(Source: reuters.com)
According to Mortgage News Daily:
“Bonds lost ground this morning despite slightly higher Jobless Claims. There are no obvious cases for causality apart from markets generally bracing for the impact of impending fiscal changes. Some feel that tariffs will increase inflation. Others feel that separate policies will increase growth (or decrease revenue). None of the above is good for rates. Notably, Trump said he would ‘demand’ lower interest rates in his Davos speech today and 2yr Treasury yields actually dropped enough to notice, but not by enough to suggest the market is reading much into it.“
(Source: MortgageNewsDaily.com)
New Mexico MLS to Require Floor Plans on all Listings
According to Real Estate News:
“A small Southwestern MLS may turn out to be a trailblazer. The New Mexico MLS (NMMLS) announced this week that floor plans will soon be required for all residential, rental and multifamily listings on its platform. NMMLS, based in Santa Fe, is the first MLS to mandate the inclusion of floor plans. Why now? Because buyers increasingly want them. In its annual trends report, Zillow reported that 86% of buyers in 2024 said they were more likely to view a home if the listing included a floor plan, up from 79% in 2020, when the survey first asked buyers about floor plan preferences.”
Six weeks ago, on Episode 9 of the show, we did a deep dive into Zillow’s 2025 Consumer Housing Trends Report.
“’At NMMLS, we are committed to delivering the highest quality data and media to consumers, and this initiative is a major step forward in achieving that goal,’ NMMLS executive director Megan E. McFarlane said in a news release. It’s not only good for consumers, McFarlane said, it’s also a win for agents: ‘Requiring floor plans on listings ensures that every buyer in New Mexico has access to the tools they need to make better decisions. This move also ensures our brokers remain on the cutting edge, delivering a superior listing experience for their clients. NMMLS is proud to be a leader in this space and excited to set a new standard for our industry.’”
(Source: RealEstateNews.com)
Appeals Court Rules That Agents’ Use Of Floor Plans Is “Fair Use”
According to RISMedia:
“In a significant decision for the real estate and home design industries, the Eighth Circuit Court of Appeals ruled that the use of floor plans in resale listings constitutes fair use under copyright law. Issued on Jan. 14, 2025, the ruling brings clarity to a long-standing dispute between Charles James, a home designer, and several real estate agents accused of copyright infringement. Advocating for the agents, the National Association of REALTORS® (NAR) defended the use of floor plans to market their listings without fear of copyright infringement. ‘Floor plans are indispensable tools for agents to market properties effectively and for consumers to make informed decisions during their property search,’ said Kevin Sears, president of NAR, in a statement. ‘This legal victory demonstrates how working together at all levels can ensure members have the tools needed to serve their clients.’”
(Source: RISMedia.com)
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