President Donald J. Trump has argued that unnecessary regulations and outdated mortgage processes have made homeownership unaffordable for Americans and driven up closing costs. On Thursday, he signed an executive order designed to lower the costs of single-family homeownership and mortgages, remove unnecessary red tape, and expand access to the American dream of homeownership.
The order, called “Decreasing Housing Costs for the American People,” directs federal agencies to ease mortgage insurance rules and make refinancing cheaper.
Under the main provision, the Federal Housing Finance Agency director must direct Fannie Mae and Freddie Mac to set up a pilot program for new mortgages. The companies will periodically check home values with automated models, identify borrowers who have built enough equity, and cancel their private mortgage insurance. The administration says the change will eliminate a large monthly expense for qualifying Americans. Servicers would have to notify eligible homeowners quickly and avoid unnecessary appraisals or paperwork.
Private mortgage insurance is required on most conventional loans with less than 20% down and can add $100 to several hundred dollars a month. This mandatory insurance often stays on for years even after the home has appreciated. FHFA Director Bill Pulte called the order “the greatest Housing Executive Order in History,” adding that “millions of Americans will save thousands and thousands of dollars.”
A separate section directs the FHFA director to expand the agency’s title insurance waiver pilot into a permanent nationwide program through both Fannie Mae and Freddie Mac. On eligible refinances, the companies could accept an automated title review instead of traditional lender’s title insurance, with the savings passed to borrowers to reduce closing costs and monthly expenses.
The director is also told to consider wider eligibility, fewer geographic limits, and lower fees or documentation requirements on limited cash-out refinances.
The order also creates a Task Force on Manufactured Housing Innovation, co-chaired by the HUD secretary and the FHFA director. Within 180 days the group must recommend ways to increase the quality of and lower the cost of building a home by making it easier to use modern factory-built methods for homes that qualify for federal programs.
The secretaries of Agriculture and Veterans Affairs are directed to lower interest rates on the single-family loans their departments make directly, targeting rural and veteran borrowers.
Housing affordability remains strained, which is why the President has moved to act.
The average 30 year fixed rate mortgage stood at 7.32% on the day of the order, up from a low of roughly 2.65% in 2020, when Trump was previously in office. Over the same period, average home prices rose from roughly $475,000 to about $502,700. Pending sales, housing starts, and building permits have all weakened as high prices and rates above 7% slowed the market. The order arrived less than two weeks before midterm elections in which affordability has been a central issue.
Homeownership is a vital pillar of our great Nation and a fundamental piece of the economy. The Trump Administration is working to cut burdensome costs and red tape with the goal of making the American dream of homeownership more affordable and attainable for the American people.
The October 22 order builds on earlier steps the administration has described as dramatic action to decrease housing costs, including a January directive restricting large institutional investors from buying single-family homes, a plan for Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities, a March order that cut some regulatory burdens on mortgage origination, and a crackdown on H-1B visa abuse that includes a $100,000 fee on new petitions and a rule barring non-permanent residents from FHA-backed mortgages.
