White House officials are expressing significant frustration with Bill Pulte, the director of the Federal Housing Finance Agency, following his influence on President Donald Trump to suggest a 50-year mortgage plan. This unexpected proposal has drawn backlash from conservative allies, business leaders, and lawmakers, leaving the White House scrambling to manage the fallout.
According to two anonymous sources familiar with the situation, Pulte arrived at Trump’s Palm Beach Golf Club with a visual presentation, including a poster comparing former President Franklin Roosevelt’s endorsement of a 30-year mortgage with Trump’s proposed 50-year mortgage. Shortly after presenting this idea, Trump shared the image on his Truth Social platform, which promptly ignited a flurry of criticism.
Aides began receiving angry calls from various stakeholders who believed endorsing a 50-year mortgage would be detrimental both politically and economically, potentially exacerbating housing costs in the long run. One insider remarked that Pulte had misled the president by not fully disclosing the unintended consequences of such a policy.
This event highlights the often haphazard manner in which significant policies are presented to Trump, reflecting his spontaneous approach to governance. One anonymous observer noted the necessity of thorough vetting for ideas proposed to the president, which does not always occur with Pulte.
Despite the negative response, Trump attempted to downplay the proposal, claiming it would simplify monthly mortgage payments. “All it means is you pay less per month,” he mentioned during an interview, indicating that the idea might not be as significant as it seemed.
Nevertheless, conservative influencers, including Laura Loomer and Rep. Marjorie Taylor Greene, swiftly condemned the idea on social media, expressing their disbelief over the notion. Industry experts echoed similar sentiments, warning that a 50-year mortgage would slow the accumulation of equity for homeowners and serve only as a temporary measure to tackle affordability issues.
In light of the criticisms, Pulte acknowledged the backlash via a social media post, suggesting that a 50-year mortgage is merely one option among many the administration is exploring, including the introduction of portable and assumable mortgages.
White House spokesperson Davis Ingle reiterated Trump’s commitment to making homeownership more attainable, emphasizing efforts to eliminate bureaucratic obstacles and lower costs. Additionally, an FHFA spokesperson criticized the current housing market conditions, attributing them to inflation under President Joe Biden and highlighting ongoing efforts to mitigate the effects.
This incident is not Pulte’s first controversial proposal, as he had previously advocated for taking Fannie Mae and Freddie Mac public, which also faced substantial criticism. His influence, while significant, has drawn the ire of senior administration officials, who are reportedly growing increasingly frustrated with his approach.
Despite the controversies, Pulte remains close to Trump and maintains direct access to the president, which aides have found challenging to regulate. Opponents within the MAGA base are voicing their discontent, indicating that this policy proposal may have far-reaching implications for the administration moving forward.
While the concept of a 50-year mortgage may offer lower monthly payments, it raises concerns about slower equity growth for homeowners. Experts from the National Association of Realtors caution that merely extending mortgage terms will not effectively address the root causes of the current affordability crisis in housing markets.