The MOVE Act requires Fannie Mae and Freddie Mac to purchase and securitize portable mortgages, allowing homeowners to transfer their existing interest rates and terms to a new property.
Thomas Kean
Representative
NJ-7
The **Making Ownership Viable for Everyone (MOVE) Act** aims to increase housing flexibility by requiring Fannie Mae and Freddie Mac to support portable mortgages. This legislation allows homeowners to transfer their existing mortgage interest rates and terms to a new property, making it easier for families to move without losing favorable financing.
MOVE Act Mandates Portable Mortgages: Keep Your Low Interest Rate When You Buy a New Home Starting in 2025.
The Making Ownership Viable for Everyone (MOVE) Act is designed to solve the 'golden handcuff' problem—where homeowners feel stuck in their current houses because they don't want to trade a 3% mortgage for a 7% rate on a new place. Under Section 2, the bill requires Fannie Mae and Freddie Mac to start purchasing and securitizing mortgages with a 'portability' feature within 180 days of the law being signed. This feature allows you to take your existing interest rate, loan terms, and remaining balance and move them to a different property, provided you close on the new home within 90 days of selling the old one.
Taking Your Rate on the Road
This bill essentially turns your mortgage into a backpack you can carry from one house to the next. For example, imagine a software developer in a starter condo who needs more space for a growing family. Currently, moving to a larger house might mean doubling their monthly interest payment. Under the MOVE Act, that developer could sell the condo and apply their original, lower interest rate to the new home's mortgage, as long as the transaction fits within the 90-day window required by the portability clause. By requiring Fannie Mae and Freddie Mac to buy these loans, the bill ensures that local lenders have the financial backing to offer these portable options to regular borrowers.
The 90-Day Sprint
While the bill offers a massive financial safety net, it does come with a ticking clock. Section 2 specifies that the transfer must happen within 90 days of the sale of the original home. In a slow market or a complicated closing—like a construction worker trying to coordinate a move between cities—this three-month window could be tight. If the new purchase hits a snag and goes to day 91, the borrower could lose the ability to port that low rate and be forced into whatever the current market rate is. The bill also relies on the standard definitions of 'conventional mortgages' from the Charter Acts of both Fannie Mae and Freddie Mac, ensuring this isn't a niche product but something intended for the broader housing market.