When it comes to housing affordability, the U.S. Department of Justice (DOJ) must reevaluate harmful actions established by the previous administration. Housing became increasingly out of reach for millions of working-class Americans during the Biden administration. President Trump and his administration have a golden opportunity to prioritize American homeownership.
President Donald Trump has been quick to take aggressive action to slash bureaucratic red tape, streamline government and curtail the government overreach that defined the Biden administration.
To that point, the Trump administration, including Attorney General Pam Bondi, should take corrective action at the DOJ, which continued to push Biden administration policy through litigation in the weeks before Trump’s inauguration.
It would not be without precedent for an incoming AG to pause and reverse litigation pursued by the previous administration. In the past few weeks, acting Solicitor General Sarah Harris has filed motions requesting the Supreme Court to hold appeals in cases regarding federal policy that is expected to change.
In the case of Department of Education v. Career Colleges and Schools of Texas, Acting Solicitor General SarahHarris requested a hold in “abeyance” due to the Trump administrations likely reevaluation of student loan repayment policy. Until federal regulations and law change to match Trump’s agenda, it does not make sense for the Supreme Court to rule on this case. Additionally, Harris filed a motion in Diamond Alternative Energy v. US Environmental Protection Agency, a suit centered around regulation in carbon emissions and ozone pollution, because the EPA is likely to reassess the basis and regulatory policies surrounding this case.
For homeowners, one of the most dangerous political actions by the Biden administration, was their attempt to rewrite housing law. This is most clearly exemplified in the DOJ’s case against Rocket Mortgage – the nation’s largest mortgage lender – Solidifi US, Maverick Appraisal Group, and appraiser Maksym Mykhailyna.
The DOJ’s lawsuit alleges racial discrimination against a Black homeowner in the appraisal process. The lawsuit argues that Rocket should have intervened and done more to correct the allegedly biased appraisal. Rocket hit back, arguing that it was blocked from getting involved by federal law – specifically, the Dodd-Frank Wall Street Reform and Consumer Protect Act.
Dodd Frank was intended to keep appraisers independent from mortgage lenders to protect the integrity of the housing market and avoid inflating housing costs. This was passed to protect American homeowners and prevent future housing bubbles in the wake of the 2008 financial crisis.
By contradicting this legal precedent and insinuating the connection between appraisers and mortgage lenders, Biden’s activist lawyers in the DOJ prioritized political motives instead of making homeownership more affordable by supporting homebuilders and others seeking to boost the country’s housing supply. If the Trump administration wants to continue to meet the needs of the American voters and make housing more affordable, reversing this action is critical.
In his inaugural address, President Trump said that he “will direct all members of [his] cabinet to marshal the vast powers at their disposal to defeat what was record inflation and rapidly bring down costs and prices.” This includes housing costs. Housing affordability harmed millions of Americans under the Biden administration and could only be made worse by the unlawful action brought on by Biden’s bureaucracy in the waning days of his presidency.
The American people voted for change, and the current Trump administration is working its way through all corners of American life to evoke that change. As his administration continues to take shape, the housing industry — something that affects all Americans— must be front and center.
Tom Giovanetti is president of the Institute for Policy Innovation (IPI), a free-market public policy research organization based in Dallas, Texas.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners. To contact the editor responsible for this piece: sarah@hwmedia.com
