Big Changes Could Be Coming to Make Mortgages More Affordable

A sweeping housing affordability action plan is gaining momentum, proposing policy changes that could lower mortgage costs for California homebuyers without requiring new legislation.

The mortgage industry is pushing hard for policy reforms that could make homeownership more accessible — and some of these changes could happen faster than you might expect.

A recently unveiled affordability action plan outlines 20 concrete policy changes aimed at reducing the cost of buying a home. What's encouraging is that many of these reforms don't require new laws to take effect — they could be implemented quickly through existing regulatory authority.

Here are the highlights that could directly impact California buyers:

Lower loan-level pricing adjustments on conventional loans. These are fees built into your mortgage rate, and reducing them could meaningfully lower your monthly payment.

Modernized compensation rules for loan originators, which could increase competition and drive down costs for borrowers.

Expanded construction financing through government lending programs — a big deal in California where housing supply remains a persistent challenge.

Perhaps most notably, there's growing momentum to eliminate the requirement that lenders pull credit reports from all three major bureaus. Streamlining this process could speed up approvals and reduce costs.

None of this is guaranteed yet, but the direction is promising. If these reforms go through, buyers who act in the next 12–18 months could be getting into the market right before conditions improve significantly.

Want to stay ahead of these changes? Reach out to our team today — we'll help you understand how current and upcoming programs can work in your favor.