NAMB lays out comprehensive plan to tackle the housing affordability crisis

Calling the U.S. housing affordability crisis a “national emergency” that represents “one of the defining challenges of our generation,” the National Association of Mortgage Brokers (NAMB) released a white paper Thursday that identifies specifics issues and proposed solutions to expand access to homeownership.

“Housing affordability has reached crisis levels,” observes NAMB President Kimber White 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 20-page paper outlines both regulatory and legislative priorities that NAMB believes can help improve housing affordability while promoting fair lending practices across the mortgage industry.

On the regulatory front, NAMB seeks changes to loan-level price adjustments (LLPAs), which are risk-based fees charged by Fannie Mae and Freddie Mac on conforming loans that meet their underwriting criteria.

The association proposes eliminating LLPAs on investment properties and second homes to encourage housing supply development. Additionally, NAMB suggests that the government-sponsored enterprises (GSEs) “reduce or eliminate LLPAs that disproportionately impact creditworthy borrowers” and “allow greater pricing flexibility for lenders and brokers to serve diverse borrower needs.”

“The fundamental driver of housing affordability is supply.”

Another GSE-related proposal calls for the reduction of the waiting period to six months for borrowers seeking to refinance a Fannie- or Freddie-backed loan. The current waiting period is a full year.

“The 12-month rule prevents borrowers from refinancing to eliminate PMI [private mortgage insurance] once they reach 20% equity through home appreciation or additional payments,” the white paper states.

NAMB also seeks adjustments to the area median income (AMI) thresholds for HomeReady and Home Possible, which are the respective low-downpayment loan programs from Fannie Mae and Freddie Mac that are geared toward low-income borrowers.

Those programs are currently capped at 80% AMI, meaning a borrower’s income needs to be at or below 80% of the median income level in the location where they are seeking to purchase a home. NAMB thinks the threshold should be raised to 130%.

“The 80% AMI limit excludes many working families — teachers, nurses, firefighters and other essential workers — who earn moderate incomes but still struggle with housing affordability,” the white paper states. It adds that increasing the threshold would “help close racial and ethnic homeownership gaps, as many minority families fall in the 80% to 130% AMI range.” Get these articles in your inbox Sign up for our daily newsletter Get these articles in your inbox Sign up for our daily newsletter

Another topic that NAMB has spoken with Scotsman Guide about on multiple occasions is the rising costs of credit reports. The association is now calling for enhanced regulatory oversight of the credit bureaus, a justification mandate for cost increases, and fee caps “to ensure affordability, particularly for tri-merge reports used in mortgage underwriting.”

Legislative priorities

On the legislative side, NAMB would like to see an overhaul of the National Flood Insurance Program (NFIP), which experienced a funding lapse during the 43-day federal government shutdown last year, but which is currently authorized through Sept. 30.

NAMB advocates for long-term reauthorization of that government-backed flood insurance program to provide market stability. The association also proposes new government subsidies for low- to moderate-income families in high-risk areas; expanded coverage options; and updated flood mapping to accurately reflect current risk.

The national trade group also supports two major bipartisan housing reform packages that are at varying stages of the congressional process: the Housing for the 21st Century Act and the ROAD to Housing Act.

The former bill received overwhelming approval by the full U.S. House of Representatives on Monday. It now heads to the Senate, where it will need to be reconciled with similar and disparate provisions in the ROAD Act. That upper chamber package was unanimously passed by the Senate Banking Committee in July, but its legislative momentum stalled when it was cut from the final version of the 2026 National Defense Authorization Act.

According to an analysis by the Bipartisan Policy Center, 17 of the 38 sections of the Housing for the 21st Century Act align at least in part with provisions in the ROAD to Housing Act.

One of the common denominators between the two packages is the objective of increasing housing supply. NAMB’s white paper declares that “the fundamental driver of housing affordability is supply,” adding that multiple legislative actions must work in conjunction to spur housing construction.

White believes that the collective proposals outlined in his association’s white paper could create “transformational change.”

“America’s housing affordability crisis demands bold, coordinated action,” White concludes. “The solutions are identified, and the mortgage community stands ready to help expand supply, lower costs, and restore attainable homeownership for millions.”

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