In Donald Trump’s recent speech at the Detroit Economic Club, Trump called for a temporary moratorium on new financial regulations. According to Collingwood Group, this could mean a boom to the housing and mortgage markets.
“Regulations imposed after the financial meltdown have meant increased costs for lenders and borrowers, the tightest credit box in my 25-year career, and all of which have contributed to what now is the lowest homeownership rate in 51-years,” says the Collingwood Group Chairman Tim Rood.
Trump’s speech argues that his background as a real estate developer makes him a qualified candidate to lead the United States economy.
"We don’t know about all that," says Rood, “but that background clearly will be helpful since he understands the housing, commercial real estate and maybe the mortgage business as well.”
Trump’s speech announced his plan to lower individual income-tax rates, taking the top rate to 33-percent. Despite the fact that this is higher than the 25-percent top rate Trump had initially proposed, it is still a decrease from the current top rate of 39.6 percent and would me more money in the hands of the consumer.
“Under Trump we hope he opens housing markets to first-time buyers and millennials alike by reducing their taxes and giving them more disposable income,” says Collingwood Groups’ Rood. “In addition we hope he cuts regulations that prevent foreigners from using cash to buy homes, after all.”
— Donald J. Trump (@realDonaldTrump) August 8, 2016
Trump’s speech follows his previous announcement given last week of his economic advisory council. Members of that council include financiers John Paulson, Andy Beal, and Stephen Feinberg, as well as energy executive Harold Hamm.
“Relative to housing, I hope the impressive group of economic advisors Trump chose highlight for him the tight credit market and its negative impact on the ability of middle class families to buy a home in particular minority homebuyers,” says the Collingwood Group Vice Chairman Brian Montgomery, former Assistant Secretary of HUD and FHA Commissioner. “I would also add to the list soaring apartment rental rates especially in urban markets making it nearly impossible for lower income families to live there, a regulatory environment that has driven the cost to originate a mortgage loan to record high levels, and finally how to begin extracting the full faith and credit of the U.S. government from a $6 trillion housing market and bring back private capital.”