President Donald Trump signed an executive order titled “Decreasing Housing Costs for the American People” to lower mortgage insurance and refinancing expenses as borrowing costs remain near decade highs. CNBC reported that the order directs federal agencies to proactively cancel mortgage insurance on eligible future loans and expand cheaper refinancing programs.
FHFA Will Cancel Mortgage Insurance and Waive Title Fees
- Policy Mechanism: The directive instructs the Federal Housing Finance Agency to build a pilot program canceling private mortgage insurance automatically once home equity hits specific thresholds.
- Closing Cost Reductions: The order makes permanent an FHFA pilot program waiving traditional lender’s title insurance policies in favor of cost-friendly alternatives.
- Market Pressures: Mortgage rates sat at 7.32% as of October 23, 2026, while refinance demand dropped 59% mid-month year-over-year according to Freddie Mac data cited by CNBC.
Directives Targeting Private Mortgage Insurance and Equity Thresholds
Conventional loans with down payments under 20% typically require private mortgage insurance, adding 0.2% to 2% annually to a borrower’s balance. The executive order tells the FHFA to establish a pilot for Fannie Mae and Freddie Mac utilizing automated valuation models to verify home values. Under standard guidelines, conventional borrowers can ask loan servicers to remove PMI once balances fall below 80% of the original purchase price. The new presidential directive aims to automate this removal process proactively for eligible mortgages originated after the pilot program launches.
Seth Appleton, president of U.S. mortgage insurers, stated in an organization release that the industry commends the focus on lowering future ownership expenses.
President Trump’s Executive Order today is the greatest Housing Executive Order in History. Because of President Trump’s bold actions to put Americans First, millions of Americans will save thousands and thousands of dollars.
Permanent Title Insurance Waivers Target Expensive Closing Costs
Beyond insurance mandates, the White House order targets expensive closing fees by making permanent a specialized FHFA pilot program. That program previously waived lender’s title insurance policies for specific refinances with loan-to-value ratios below 80% across a limited number of states. Title-related fees routinely constitute the largest share of mortgage closing costs, according to a 2025 Urban Institute report cited by CNBC.
| Metric / Indicator | Reported Figure | Source / Context |
|---|---|---|
| 30-Year Fixed Mortgage Rate | 7.32% | Freddie Mac (As of Oct. 23, 2026) |
| Refinance Demand Change | Down 59% YoY | Freddie Mac mid-October 2026 comparison |
| Median Home Down Payment | 13.7% ($27,100) | Realtor.com (Q2 2026 report) |
| Monthly Housing Payment Burden | 33% of median income | Federal Reserve Survey of Consumer Finances (2025) |
The financial burden of homeownership climbed significantly over recent years. Federal Reserve data from the Survey of Consumer Finances highlights that monthly payments for a 30-year fixed-rate mortgage on a median-priced home consumed roughly 33% of a median family’s income in 2025, climbing sharply from 26% in 2022. Keith Gumbinger, vice president of mortgage website HSH, noted that while every cost reduction helps, the broader market remains anchored by overall home prices and elevated interest rates.
Logistical Hurdles May Delay Automated Mortgage Valuation Tools
The executive action arrived shortly before the November 3 midterm elections as voters register ongoing concerns over housing affordability. While the administration encourages new technologies like artificial intelligence to streamline property valuations and mortgage originations, market analysts point out logistical hurdles. It remains undetermined how quickly the FHFA can deploy automated valuation models and expand title review waivers across the broader national mortgage market.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
