White lists other reforms that NAMB will target in 2026
While the new year will bring new challenges and opportunities to the mortgage industry, one issue that carries over from 2025 is affordability for homebuyers.
It’s an issue that brokers have not only been dealing with on the front lines but will likely hear nonstop as a major campaign issue from both political parties heading into the 2026 midterm elections.
Suggesting solutions to mitigate affordability challenges is just one of the significant issues on the docket for one industry leader.
Kimber White (pictured top), president of the National Association of Mortgage Brokers (NAMB), said one of the first issues that needs to be tackled is loan-level price adjustments (LLPAs).
“We've got to go back and reform LLPAs,” White told Mortgage Professional America. “I understand that we don't want to get rid of LLPA because of the GSEs and the cost, but we have to reform it. We have to give some incentives, even if it's just getting rid of LLPAs to first-time homebuyers. Those are some initiatives that have to be on the table that would help the housing market move.”
Alternative options
White said that removing LLPAs for first-time buyers could help them secure a mortgage at a much lower rate.
“It would not have to be special-purpose loans,” White said. “By giving credits to first-time homebuyers, you remove loan-level price adjustments that raise rates by 0.5% to 0.75% more.”
Another possible change White is in favor of is an increase in the area median income (AMI) requirements. The proposed Housing for the 21st Century Act suggests raising those from 80% to 100%, but White thinks they could go further.
“They should definitely raise AMI,” he said. “I think it needs to go to 120%.”
Tax credits for builders are another way White believes the industry could be incentivized to work to overcome the housing shortage in many markets.
One idea that made headlines in late 2025 was offering a 50-year mortgage. White believes more creative ideas need to come to the forefront to change the way mortgages are done, helping more people get into homes.
“We talked about the 50-year mortgage, and they need to look at other alternative options,” White said. “I've suggested taking a 30-year mortgage and giving it an interest-only option. Those need to be really looked at and revamp how we're doing mortgages.
“Also, the relaxation of Fannie and Freddie on their ARM products, bringing them in line with the 30-year fixed. It’s great to have an ARM product, but if it's the same as a 30-year fixed, why do you want to do it? Unlike FHA, where it's 0.5% higher.”
Rising credit, insurance costs
Two of the biggest hot-button affordability issues going into 2026 are rising insurance and credit reporting costs.
The MBA took a bold step forward near the end of the year, publishing a letter to the FHFA recommending that Fannie Mae and Freddie Mac reduce the number of credit scores required to just one for borrowers with a score of 700 or higher.
And while White wasn’t in favor of such a drastic step, he stressed that something had to be done to address the issue.
“We've got to have credit reform,” he said. “We've got to reform how we're reporting credit and the cost of credit. If you want to fix this, you get the bureaus together and get their reporting figured out. How about us going down to the bureaus and saying, ‘Figure out how y'all can report together.’ That fixes it.
“The big difference is the way it's reporting and who it’s reporting to. We have AI. We have the best ability to pull data in the world right now, but the credit reports are still a mystery. That makes no sense to me.”
From political uncertainty and tariff debates to rising credit costs and AI disruption, Jonathan Hornik of NPLA outlines the key forces that will define mortgage lending in 2026. https://t.co/Imft4PiejH
— Mortgage Professional America Magazine (@MPAMagazineUS) January 5, 2026
Insurance costs have been increasing as well. In addition to home insurance issues, flood insurance became a major issue in 2025 due to the government shutdown. With another shutdown possible at the end of January, it’s another issue that White thinks must be tackled.
“We've got to look at flood insurance,” White said. “We have got to look at mitigating home insurance. We have to look at mitigating. When we're building, there's got to be incentives in these bills to help builders, incentivize the building, the safety and everything, to mitigate all of that.”
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This article is part of our Monthly Spotlight series, which in January focuses on Affordability. Full coverage can be found here.
