The ROAD to Housing Act: What Credit Union Mortgage Professionals Need to Know

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I’ve kept an eye on the 21st Century ROAD to Housing Act (aka, ROAD) since it was first drafted, and it’s a topic I discuss regularly. Major housing laws don’t happen often, and when they do, the real impact usually comes from how regulators implement them.

With agencies now beginning to implement the law, several provisions could directly affect mortgage lending, affordable housing, and homeownership options for our [credit union] members.

Small-Dollar Mortgages Could Get a Boost

One of the most promising parts of ROAD is a HUD pilot program aimed at making mortgages under $100,000 more available. The law also directs the CFPB to examine whether current compensation rules and Qualified Mortgage limits are making small-dollar loans harder than necessary.

Credit unions should keep a close eye on this. Many of us work in areas where affordable homes are still available, but making smaller loans can be tough with current rules. Making these loans easier could help more members buy homes.

More Changes Are Coming to Appraisals

ROAD also brings several changes to appraisals, including new FHA appraiser requirements, more opportunities for trainee appraisers, and a standardized process for reconsidering property values across federal housing agencies.

The goal is clear: more consistency, more transparency, and a closer look at how appraisals are reviewed. Mortgage teams should expect more changes in this area over the next year.

Manufactured Housing Gets More Attention

With affordability still a big challenge in the industry, ROAD increases support for manufactured and modular housing. It widens the definition of manufactured housing, asks HUD to tackle financing barriers, and expands FHA Title I financing options.

Credit unions seeking new ways to support affordable homeownership may find opportunities in areas where conventional housing options are limited.

Housing Supply Matters to Lenders

Some parts of ROAD are designed to encourage local housing development by offering grants, incentives, and programs for new construction and for converting vacant properties into homes.

These changes aren’t directly about mortgages, but more homes on the market means more chances for financing. That benefits future homeowners, communities, and lenders.

A Few Credit Union Wins

ROAD also includes several changes for community financial institutions, such as updates to examination cycles, reforms to reciprocal deposits, and greater governance flexibility for federal credit unions.

These changes might not make big headlines, but they show that credit unions are still recognized for their key role in local communities and in helping people become homeowners.

Want to Learn More?

This article covers the parts of the law that matter most to credit union mortgage professionals. For a deeper look at the legislation, timelines, regulatory changes, and what agencies are planning next, check out the full analysis from Brownstein Hyatt Farber Schreck.

Read the full Brownstein brief: 21st Century ROAD to Housing Act Implementation

The Bottom Line

If you work in credit union mortgages, don’t set ROAD aside and forget about it.

Some of the main headlines focus on housing supply and big investors, but the biggest effects on our industry will likely come from small-dollar lending, updated appraisal rules, manufactured housing finance, and new regulations for community financial institutions.

It’s also important to remember that many of these rules are still being shaped by agencies, new regulations, and pilot programs. What happens over the next year or two will decide whether these ideas become real opportunities for credit unions or remain just good intentions.

My advice is simple: start paying attention now.

The credit unions that stay informed, get involved with their leagues and trade groups, and start planning for these changes will be better able to serve their members and take advantage of new opportunities as they come up. talking about affordability, housing inventory, access to credit, and the challenges of serving underserved borrowers. This legislation doesn’t solve all of those issues, but it represents one of the most significant attempts to address them in recent memory.

For credit union mortgage leaders, the real question isn’t if this law will matter, but whether we’ll be ready to make the most of the opportunities it brings.

ROAD is now in place, and the implementation phase has started. For those of us focused on growing sustainable homeownership for credit union members, this is a topic we should keep a close eye on.

The information reported in this document, financial and otherwise, should not be construed as either legal or investment advice, nor does it represent the views of ACUMA, its Board of Directors, its staff or its members. The author presents information current at the time of publication and is designed to educate ACUMA members and others interested in the credit union mortgage lending industry.