❓WHAT HAPPENED: Department of Housing and Urban Development (HUD) Secretary Scott Turner says that President Donald J. Trump’s 50-year mortgage plan remains under consideration.
👤WHO WAS INVOLVED: HUD Secretary Scott Turner, President Donald Trump, mortgage lenders, and home buyers.
📍WHEN & WHERE: Sunday, during a television interview.
💬KEY QUOTE: “The 50-year mortgage and other ideas that have been circulated through the public are being discussed, are on the table.” – Scott Turner
🎯IMPACT: The proposal aims to ease hurdles to new home buyers and increase affordability.
The Trump administration is continuing to analyze and consider a proposal that would clear the way for 50-year mortgages to become available to home buyers, according to Department of Housing and Urban Development (HUD) Secretary Scott Turner. His comments came during a television interview on affordability on Sunday, though Turner was noncommittal on whether the 50-year mortgage would receive final approval.
“The 50-year mortgage and other ideas that have been circulated through the public are being discussed, are on the table,” he said, adding: “But at the end of the day, the President and the other leaders in the administration will discuss what’s the best possible path, secure path, to help the American people to afford a home.”
“It’s very early. I think more research needs to be done on a 50-year mortgage and the other ideas that have been put forth. Because—one thing from a HUD standpoint, from my standpoint, we want to make sure that the housing market is secure. And also for any FHA, Fannie Mae taxpayer-backed mortgages are stable and secure for the American people,” Turner stated.
The proposal, which President Donald J. Trump first floated in early November, has received some pushback. While the Trump White House has argued the goal is to make monthly payments more affordable for Americans, critics say that the extended loan term could lead to financial drawbacks. The National Pulse reported in November that Mark Zandi, chief economist at Moody’s Analytics, warned that borrowers would struggle to build equity and face a greater risk of default due to limited financial cushioning.
While the United States has not seen the use of 50-year mortgages in any meaningful sense in the past, many countries around the world allow the offering of 50-year and even 100-year mortgages. The United Kingdom permitted lenders to offer 50-year mortgages in August 2022. Both Japan and Switzerland still allow the offering of 100-year mortgages. In fact, the United States is relatively alone in its use of the 30-year mortgage, whereas most countries use the 50-year mortgage instead.
Federal Housing Finance Agency (FHFA) Director Bill Pulte contends that the 50-year mortgage could be a “game changer” for Americans struggling to enter the housing market. A recent survey suggests that prospective homebuyers—especially younger generations—are open to a 50-year mortgage.
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