Half a year into the second Trump administration, the title and settlement industry is keeping a close eye on key policy developments that could shape the rest of 2025 and beyond. While some proposals have stirred headlines, most have yet to produce sweeping changes. And if you’re anything like us, it can be tough to tell what’s real, what’s relevant, and what’s just noise.
SoftPro understands that political shifts and policy changes have the potential to significantly impact your business. But remember, not everything you read about today will impact day-to-day operations tomorrow.
That’s why we’re taking a step back to share a practical, mid-year look at what’s happening in Washington and what’s worth watching as the rest of the year unfolds. Our goal with this update is simply to provide a clear, nonpartisan look at federal developments that could shape the housing market, mortgage lending, and title operations industries in the months ahead.
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4 Things We're Watching Under the New Presidential Administration
1. CFPB Oversight and Court Challenges
Few agencies carry more weight in our industry than the Consumer Financial Protection Bureau (CFPB), which enforces key regulations like RESPA and TILA. But recent developments have left the future of the agency uncertain.
Early in the year, the new administration initiated major efforts to restructure and minimize the scope of the CFPB. That included closing its Washington headquarters, directing most employees not to report to work and attempting to eliminate more than 85% of its staff. While a federal judge paused those layoffs, the CFPB continues to operate in a limited capacity for now.
There have also been significant leadership changes, with the former Director, Rohit Chopra, no longer in charge. Russ Vought, who previously served as Director of the Office of Management and Budget and has extensive experience in federal administration, is currently serving as acting director. Jonathan McKernan, a former member of the FDIC Board with a background in financial policy and regulatory oversight, had been nominated, but was recently pulled. While several names are under consideration, a new nominee has not yet been named.
So far, no major rules have been repealed. But the question of what happens next—and who takes over regulatory oversight if the CFPB’s role is reduced or eliminated—is still unanswered. In the meantime, the best thing professionals can do is stay aware and monitor developments as they unfold. A downsized CFPB does not mean a free pass on compliance. (Plus, we’d never advise skimping in that area anyway.) The Bureau’s statutory obligations remain in place, and legal outcomes could quickly restore its authority or restructure it in new ways.
2. Interest Rates and Fed Policy
Another key area to monitor? The ongoing challenges dealt to our markets due to high interest rates. Earlier this year, many forecasters anticipated at least two Federal Reserve rate cuts by now. Those didn’t happen, of course, and now, as we move into the summer, those goal posts seem to keep moving.
The reason? A still-resilient labor market. The May jobs report showed stronger-than-expected gains, keeping unemployment steady at 4.2%. While that's good news for the broader economy, it also signals to the Fed that inflationary pressures might not be easing fast enough to warrant immediate rate cuts.
Right now, most experts believe the Fed will maintain a “wait-and-see” approach. If inflation continues to cool and the job market shows signs of softening, we could still see rate cuts later this year. But if economic growth holds firm, rates may remain elevated through at least the fall.
President Trump has publicly voiced frustration with Fed Chair Jerome Powell over the pace of rate adjustments. Powell, in turn, has reiterated the Fed’s commitment to an independent, cautious, data-driven strategy.
Meanwhile, real estate inventory has risen to its highest level since 2020, signaling growing supply. It’s what we’ve been waiting on for literally years. However, elevated mortgage rates continue to sideline many would-be buyers, especially first-timers. Pending home sales hit a record low earlier this year, underscoring the market’s hesitation.
The shift toward a more balanced housing market may still be coming, but it's moving at a slower, more uncertain pace.
3. Fannie Mae and Freddie Mac Push to Privatization
Another significant storyline emerging is the renewed push to privatize Fannie Mae and Freddie Mac. After 17 years under federal conservatorship, the Trump administration has signaled it wants to finally end government control. Officials argue the government-sponsored enterprises (GSEs) are now profitable, stable, and capable of returning long-term value to taxpayers through a public offering.
FHFA Director William Pulte has echoed support for exploring privatization but emphasized the need for a careful and measured approach that preserves market stability. However, no official timeline or formal transition plan has been released.
The administration has stated that even if Fannie and Freddie become private companies, some level of federal oversight or backstop would remain in place. Credit rating agencies, including Fitch, have noted that this government guarantee would be essential for maintaining low borrowing costs and liquidity in the secondary mortgage market.
Still, the potential for change introduces uncertainty, as shifts in GSE structure could impact access to credit and investor behavior across the mortgage landscape, so it’s certainly something to keep tabs on.
4. Tariffs, Trade Deals, and the Housing Supply Chain
Another variable to monitor is trade policy. In recent months, a series of sweeping tariff announcements has added volatility to the housing supply chain, as well as Wall Street and the general economy. New duties on steel, aluminum, copper and lumber—some imposed, others paused or challenged in court—have created an unpredictable environment for builders and suppliers alike.
With legal rulings in flux and enforcement timelines shifting week to week, many construction firms remain in a holding pattern as they try to predict material costs or delivery schedules with confidence.
The administration has framed these actions as part of a broader effort to strengthen domestic industry and address trade imbalances. A temporary 90-day truce with China eased some immediate pressures, but market watchers warn that gains remain fragile. Even short-lived tariffs can significantly raise construction costs, especially in housing sectors that rely on imported goods or cross-border supply chains.
These policy shifts ripple beyond raw materials. Tariffs can influence inflation expectations, which in turn affect bond markets and mortgage rates. Some analysts suggest that if tariffs continue or expand, they could keep inflation stickier than expected, delaying interest rate relief. Others believe increased stability in trade policy could give the Fed more room to maneuver. Either way, keeping a close eye on how economic policy evolves will be crucial.
The Bottom Line
At this point, we’re still very much in a “wait and see” environment regarding the second-term Trump effect on real estate. Most proposed changes are still unfolding. Markets in the Midwest and South remain stable, and there’s cautious optimism as inflation eases and potential rate cuts loom. Major regulatory threats, such as the title waiver pilot, haven’t advanced, but they also haven’t vanished either.
SoftPro will continue to monitor the road ahead and share what we learn, so you can focus on what you do best: serving your clients with clarity, accuracy, and professionalism. For updates on market trends, policy developments, the regulatory environment and more, be sure subscribe to our Compliance Newsletter and follow along here on our blog.
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