Neither Trump nor Clinton concentrated much on the mortgage industry on the campaign trail. So what does Trump’s victory mean for the business?
Donald Trump’s victory in Tuesday’s election came as a shock to nearly all observers – and sent a shockwave through the financial industry as Dow futures tumbled. But after the initial worry, many in the industry are seeing an upside to Trump’s presidency.
So what does a Trump presidency mean for the housing and mortgage industries? While Trump hasn’t gone into much detail on his plans for those specific industries, one thing is fairly clear – he’ll probably want to ease regulatory burdens.
While a candidate, Trump promised to roll back the Dodd-Frank Act, according to the Boston Globe. The legislation and the agency created under its authority, the Consumer Financial Protection Bureau, have been sources of constant worry for many in the mortgage industry as regulatory burdens have increased.
The prospect of lighter regulation is giving some in the financial industry reason to hope Trump’s presidency will boost the economy rather than drag it down. Bruce Van Saun of Citizens Financial Group told the Globe he was “cautiously optimistic” about Trump’s effect on the economy.
Still, Van Saun stopped short of expecting Dodd-Frank and the CFPB would just magically disappear under a Trump administration.
“A lot of this is directionally good, but there’s still some uncertainty about how it will play out,” he told the Globe. “I’m not sure you’ll get a Dodd-Frank repeal or elimination of CFPB, but you’ll see a pushback.”
Still, Trump’s victory seems to be bolstering confidence at large financial institutions. Wednesday morning saw Bank of America stock spike 5%, while JPMorgan Chase, Morgan Stanley and Wells Fargo were all up more than 3%, according to a Wall Street Journal report.
So what does a Trump presidency mean for the housing and mortgage industries? While Trump hasn’t gone into much detail on his plans for those specific industries, one thing is fairly clear – he’ll probably want to ease regulatory burdens.
While a candidate, Trump promised to roll back the Dodd-Frank Act, according to the Boston Globe. The legislation and the agency created under its authority, the Consumer Financial Protection Bureau, have been sources of constant worry for many in the mortgage industry as regulatory burdens have increased.
The prospect of lighter regulation is giving some in the financial industry reason to hope Trump’s presidency will boost the economy rather than drag it down. Bruce Van Saun of Citizens Financial Group told the Globe he was “cautiously optimistic” about Trump’s effect on the economy.
Still, Van Saun stopped short of expecting Dodd-Frank and the CFPB would just magically disappear under a Trump administration.
“A lot of this is directionally good, but there’s still some uncertainty about how it will play out,” he told the Globe. “I’m not sure you’ll get a Dodd-Frank repeal or elimination of CFPB, but you’ll see a pushback.”
Still, Trump’s victory seems to be bolstering confidence at large financial institutions. Wednesday morning saw Bank of America stock spike 5%, while JPMorgan Chase, Morgan Stanley and Wells Fargo were all up more than 3%, according to a Wall Street Journal report.
