Housing Bill Signing Abruptly Canceled – What Happens Next?
Last week we reported that the 21st Century ROAD to Housing Act was on track for the president's signature as early as this week. However, President Trump has unexpectedly canceled a planned White House signing ceremony, leaving the mortgage industry wondering what comes next.
The signing, originally scheduled for Wednesday, June 24, was called off just hours before it was set to begin. In a social media post, President Trump said he would not sign the housing package until Congress makes progress on separate election legislation, the SAVE America Act, which he has described as a national emergency.
What Does This Mean for the ROAD to Housing Act?
Despite the delay, the bill is still very much alive.
Under the U.S. Constitution, once legislation has passed both the House and Senate and has been presented to the President, it becomes law if the President neither signs nor vetoes it within 10 days (excluding Sundays), provided Congress remains in session.
House Speaker Mike Johnson has indicated that the President intends to use the full review period. Assuming Congress is not adjourned during this period, three outcomes remain likely over the coming days:
The President signs the bill.
The President vetoes the bill.
The bill becomes law without the President's signature.
The Bill Itself Has Not Changed
The provisions discussed in our previous alert remain intact, including:
The loan originator compensation study.
Expanded FHA appraisal flexibility.
The small-dollar mortgage pilot program.
Restrictions affecting certain institutional investors.
What Mortgage Companies Should Do
At this point, no action is required, but lenders should continue monitoring developments. Several provisions could have meaningful operational and strategic implications once the legislation takes effect.
We will continue tracking the bill and will provide an update as soon as there is clarity regarding whether, when, and how it becomes law.
Questions? Contact troy@garrishorn.com.