The National Association of Mortgage Brokers (NAMB) offered a series of potential solutions to ongoing concerns about elevated home prices in a new white paper, titled “Addressing America’s Housing Affordability Crisis.”
The report describes the barriers to first-time home buyers, self-employed individuals and moderate-income families presented by escalating prices, increased borrowing costs and limited inventory.
“Housing affordability has reached crisis levels,” NAMB President Kimber White said in a press release. “The legislative framework exists. The industry expertise is ready. The time for action is now. We hope this white paper helps serve as a guide for lawmakers and the mortgage marketplace.”
The report asserts that without immediate action by Congress and federal regulators, in the form of decisive policy reform, housing affordability challenges will widen wealth gaps and strain communities across the country.
Potential regulatory changes could help to ease home prices by reducing the cost of housing construction and loan origination, among other things, according to the report. It asserts that overlapping federal, state and local regulations create unnecessary costs and delays in housing development and mortgage lending.
“Addressing this crisis requires coordinated action across multiple fronts,” the report states. “No single policy intervention can solve the affordability challenge. Instead, we need an integrated approach that simultaneously increases housing supply, reduces regulatory barriers, expands access to financing, and lowers transaction costs. This white paper presents such a framework by examining how federal legislative initiatives and NAMB's advocacy priorities work together to create meaningful, lasting change.”
Specifically, the report calls for federal regulators to work together on ways to:
- Eliminate or reduce loan-level price adjustments;
- Reduce the government-sponsored enterprise refinance waiting period from 12 months to six months;
- Address rising credit report costs and regulate rapid rescore pricing; and
- Increase area median income threshold to 130 percent for the loans made through Fannie Mae’s HomeReady program and Freddie Mac’s Home Possible programs to expand low-down-payment options to working and middle-class families.
Miki Adams, president of the CBC Mortgage Agency (Chenoa Fund), said down payment assistance “is essential in today’s market” in comments provided to Dodd Frank Update.
“The biggest hurdle for many first-time buyers isn’t income – it’s saving for the down payment,” Adams said. “Down payment assistance, guided by knowledgeable brokers, is one of the most effective tools we have to expand homeownership today. For many qualified buyers, it’s the single factor that determines whether homeownership is possible, and mortgage brokers play a critical role in delivering that access.”
She added: We can modernize regulations and expand supply, but without meaningful down payment assistance, too many families remain locked out. Brokers help ensure these programs reach the hardworking buyers they’re designed to serve.”
The report recommends Congress take steps toward reforming loan originator compensation (LO Comp) requirements and reauthorizing flood insurance and natural disaster protection (NFIP) provisions.
Per the report, modernized LO Comp rules should aim to:
- Create parity between brokers and retail lenders;
- Eliminate arbitrary restrictions that don't meaningfully protect consumers;
- Allow reasonable compensation adjustments that benefit borrowers; and
- Maintain strong disclosure requirements to ensure transparency.
By reauthorizing NFIP provisions, NAMB believes lawmakers could help to:
- Provide long-term NFIP reauthorization to provide market stability;
- Provide subsidies and assistance for low-to-moderate income borrowers in high-risk areas;
- Invest in flood mitigation infrastructure to reduce long-term risk and costs
- Modernize flood mapping to accurately reflect current risk; and
- Expand coverage options and private market participation while maintaining affordability.
Many of the advocacy initiatives detailed in the report can be found in the bipartisan Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025, which passed the House in February.
“The ROAD to Housing Act of 2025 is exactly the kind of comprehensive, bipartisan solution our housing system needs,” Adams said. “It tackles affordability at its roots by addressing supply, access, and sustainability, while reinforcing the promise of the American Dream for first-time and working-class homebuyers.”
Additionally, the report highlights the role mortgage brokers play as an access point to the housing market for homebuyers, by offering access to multiple lenders, fostering competition and delivering personalized guidance.