As the Trump administration bars undocumented and non-permanent residents from accessing FHA-backed mortgages, mortgage professionals raise concerns on industry impact
With federal guidelines now excluding borrowers without permanent legal status from FHA mortgage eligibility, industry professionals like Kevin Olaughlin, Senior Loan Officer at Movement Mortgage, are weighing the policy’s real-time implications.
“We’re in the business to do mortgages and get people into homes, so anytime guidelines are being tightened, it’s not the news you want to hear,” says Olaughlin. “This definitely isn’t good news for loan officers—regardless of which party you support.”
Olaughlin, who leads a team that processes a steady volume of loan applications, said the shift has prompted internal discussions to ensure all staff are aligned with the new requirements. However, he noted that the impact on his practice may be limited, thanks to the kinds of loans most of his non-permanent resident clients typically pursue.
“For whatever reason, we haven’t had a ton of non-permanent residents in the FHA products,” he says. “We probably have at least one a week that fits the conventional box.”
Most of those clients, he explained, are on H-1B work visas and qualify under Fannie Mae and Freddie Mac guidelines, which have not changed under the new rule.
That distinction has provided some reassurance. “I hope it stays that way,” Olaughlin said. “From my day-to-day, I can’t think of more than one person we’ve had to say no to in the last 12 months because of this.”
Still, he cautioned that even if the operational effect is minimal in some offices, the broader implications shouldn’t be ignored.
“That doesn’t mean people aren’t being affected,” he said. “There is a great deal of people impacted by this change, and it’s unfortunate news overall.”
For many in the mortgage industry, the shift shows an ongoing tension between federal housing policy and lending realities—especially when immigrant borrowers, who often already face documentation and credit hurdles, are further excluded by changes in eligibility.
While Olaughlin’s team will continue to serve clients through conventional channels, he acknowledged the importance of staying vigilant. “The rules can change quickly,” he said. “And we need to be ready—for ourselves and for the people trying to buy a home.”
