New York, Sept. 22, 2025
For Immediate Release
As proposed to the Trump Administration
Policy Proposal: Transferable Mortgages to Boost Housing Market and Economic Growth
The Housing Market Crisis
The U.S. housing market is paralyzed by stagnation. Approximately 33.9% of homeowners hold mortgages with low interest rates of 3% to 4%, representing $4.05 trillion in value. Many are reluctant to sell due to current higher interest rates, which are unlikely to revert to historic lows any time soon. This reluctance restricts housing inventory, inflates home prices, and disrupts market fluidity. If only 5% of these homeowners were to relocate, it could unleash over $200 billion in home sales, revitalizing the real estate sector and beyond.
A Market-Driven Solution: Transferable Mortgages
I propose a policy enabling homeowners to transfer their existing mortgage to a new property. The process is straightforward:
- Upon selling their current home, the homeowner’s mortgage is held in escrow.
- When purchasing a new home, the escrowed funds are applied, and the original mortgage is transferred to the new property, provided it is of equal or greater value.
- If additional funds are required, a second mortgage can be secured at prevailing market rates.
- Homeowners incur only minimal costs: an appraisal fee (approximately $500) and title insurance, eliminating the need for costly reapplication processes.
This approach leverages existing mortgage approvals, requiring no new underwriting as only the collateral changes. It is fiscally responsible, requiring no taxpayer-funded subsidies, and addresses potential revenue concerns from banks and mortgage servicers. Countries such as Canada, the United Kingdom, and Australia have successfully implemented similar systems, known as “Portable Mortgages,” demonstrating the policy’s viability. Additionally, Fannie Mae & Freddie Mac currently allow for Transferable mortgages on commercial real estate known as “Collateral Substitution”.
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Benefits for Homeowners and the Economy
- One Mortgage for Life: Homeowners retain a single mortgage across multiple properties, preserving favorable interest rates.
- Significant Cost and Time Savings: Eliminates repetitive bank approval processes, limiting expenses to appraisal and title insurance fees.
- Seamless Relocation: Simplifies moving, encouraging mobility and increasing housing inventory.
- Economic Stimulus: Unlocks billions in home sales, driving growth in real estate, construction, and related industries.
Action Required
Your administration’s authority to guide Fannie Mae, Freddie Mac, and banking regulators makes this policy immediately actionable. It complements your commitment to dismantling regulatory barriers, as evidenced by your efforts to streamline housing development and support first-time homebuyers. Implementing Transferable Mortgages will enhance market fluidity without adding to the federal budget.
Addressing Potential Obstacles
While banks may resist due to reduced revenue from new loan originations, the broader economic benefits of increased home sales and market activity will outweigh these concerns. Strategic collaboration with Fannie Mae, Freddie Mac, and mortgage servicers will ensure a standardized, compliant framework.
Conclusion
Transferable Mortgages offers a bold, market-driven solution to unlock the housing market, empower homeowners, and fuel economic growth. This policy embodies the President’s vision of making America great again by prioritizing homeowners’ needs.