Dive Brief:

• On Friday, President Donald Trump signed an executive order calling for a review and revision of the financial regulations laid out in the Dodd-Frank Wall Street Reform and Consumer Protection Act, a move that has been broadly welcomed by the residential construction industry, HousingWire reported.

• The action comes amid concerns that the legislation, which was signed into law in July 2010, has restricted bank lending and impacted the rate of new home construction and individual mortgages.

• House republicans are expected to disclose plans for overhauling the act as early as this week, according to The Wall Street Journal.

Dive Insight:

Trump is moving quickly in a bid to deliver on many of his key campaign pledges and the plan to roll back parts of the Dodd-Frank Act was high on his to-do list.

Homebuilders have long called for the reversal of elements of the law and backed the move by the new administration. National Association of Home Builders’ Chairman Granger MacDonald said in a statement Friday that the tight lending environment since the law was passed has prevented many homebuilders from receiving loans, particularly from small and mid-sized community banks.

Meanwhile, the executive order has drawn criticism from supporters of the legislation, who argue that scaling it back could increase the risk of another economic collapse.

This is just the latest executive action from the new president that stands to impact the residential construction industry. Last month, Trump issued an executive order suspending a move made earlier that month by the Federal Housing Administration that would have cut the annual premiums borrowers pay on most new mortgages by 25 basis points with a closing date on or after Jan. 27.

The plan to lower the premium was thought to aid first-time buyers in affording a mortgage.

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