Housing Policy Leaders Examine Affordability, Fraud and the Future of Mortgage Finance
May 19, 2026
From housing supply shortages and affordability pressures to wire fraud and artificial intelligence, housing leaders outlined the growing complexities facing the real estate market during a panel discussion moderated by ALTA CEO Chris Morton at the 2026 ALTA Advocacy Summit.
The session featured Shannon McGahn, executive vice president and chief advocacy officer for the National Association of Realtors, and Edward DeMarco, president of the Housing Policy Council, who discussed the policy and market forces shaping housing finance, real estate transactions and homeownership.
Both panelists said housing affordability and supply constraints have become central issues in Washington as policymakers increasingly focus on inventory shortages, rising home prices and barriers to homeownership.
McGahn said years of advocacy from housing organizations helped elevate affordability concerns into a national policy discussion. She noted that organizations are increasingly relying on market-specific research and consumer engagement to demonstrate how affordability challenges are affecting buyers and sellers in individual communities.
DeMarco said there is now broader recognition that supply shortages remain a primary driver of affordability challenges in many markets. That shift, he said, has increased attention on zoning restrictions, permitting delays and other regulatory barriers limiting new housing development.
A significant portion of the session focused on the future of Fannie Mae and Freddie Mac, which have remained in conservatorship since the 2008 financial crisis. DeMarco said policymakers have spent little time in recent years examining broader questions surrounding the federal government’s role in housing finance and mortgage market support.
He cautioned that any effort to remove the government-sponsored enterprises from conservatorship would require careful consideration because of the potential impact on mortgage-backed securities markets, loan pricing and the broader mortgage finance system.
McGahn emphasized the importance of preserving the 30-year fixed-rate mortgage, which she described as critical to homeownership and long-term wealth creation. She also stressed that any proceeds generated from potential public offerings tied to the enterprises should remain focused on housing priorities.
Tax policy also emerged as a key affordability issue. McGahn highlighted concerns surrounding the capital gains exclusion on the sale of primary residences, which has remained unchanged since 1997. She said rising home values are discouraging many longtime homeowners from selling because of potential tax liabilities, further limiting available inventory. DeMarco agreed that the outdated exemption structure is contributing to supply constraints by encouraging owners to hold properties rather than place them on the market.
The panel also examined executive orders aimed at reducing regulatory barriers tied to housing development and mortgage finance. DeMarco said the directives could lead federal agencies to pursue reforms designed to lower costs and improve efficiency within the housing finance system.
Fraud prevention was another major focus of the discussion as panelists addressed rising incidents of wire fraud, seller impersonation scams and deed fraud across the real estate industry.
McGahn said NAR has focused heavily on education and training efforts to help members identify and avoid fraud schemes. She added that federal law enforcement agencies are facing increasing pressure from the growing volume of cybercrime tied to real estate transactions.
DeMarco said stronger information sharing across the housing and mortgage industries will become increasingly important as fraud schemes grow more sophisticated through the use of artificial intelligence and other technologies. The session concluded with a broader discussion about AI and its growing role in real estate and mortgage operations. Both panelists said the technology has the potential to improve efficiency and streamline workflows, while also creating new risks tied to cybersecurity and data infrastructure demands.
Throughout the discussion, panelists repeatedly returned to the idea that reducing friction across the housing ecosystem—from regulation and financing to transaction security and inventory—will be critical to improving affordability and maintaining long-term consumer confidence in the market.
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