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US President Donald Trump has signed an executive order aimed at reducing mortgage insurance and refinancing costs as elevated interest rates and housing prices continue to strain affordability for American households.
The October 22 order, titled “Decreasing Housing Costs for the American People,” directs the Federal Housing Finance Agency (FHFA) to pursue changes to mortgage insurance cancellation procedures and expand an existing program designed to lower refinancing expenses.
- President Donald Trump signed an executive order on October 22, 2026, directing federal housing agencies to pursue lower mortgage insurance premiums and refinancing expenses.
- A proposed pilot program would automatically cancel private mortgage insurance for eligible borrowers who meet home equity requirements, potentially eliminating hundreds of dollars in monthly costs.
- The administration also plans to expand a refinancing program that could save eligible borrowers $500 to $1,500 in closing costs, although the broader financial impact remains uncertain.
The measures include a proposed pilot program allowing eligible borrowers to have private mortgage insurance canceled proactively after meeting specified home equity requirements. The initiative would apply to qualifying mortgages originated after the program begins (see Current US Mortgage Rates).
FHFA Director Bill Pulte said in a post on X that “millions of Americans will save thousands and thousands of dollars” under the administration’s plans.
The eventual savings remain uncertain, according to Keith Gumbinger, vice president of mortgage information website HSH, who said further implementation details would be needed to assess the impact on consumers.
The announcement comes ahead of the November 3 midterm elections, with inflation and housing affordability among the financial concerns facing US voters. The administration has previously introduced measures intended to restrict large Wall Street investors from acquiring single-family homes. Fannie Mae raises US mortgage rate forecast to 7.5% for 2027.
Housing costs have increased substantially relative to household income. In 2025, the monthly payment on a 30-year fixed-rate mortgage for a median-priced home represented approximately 33% of median family income, compared with 26% in 2022, according to the Federal Reserve’s Survey of Consumer Finances published in October.
Mortgage insurance cancellation could reduce monthly payments
One of the principal measures in the executive order concerns private mortgage insurance (PMI), which lenders generally require on conventional mortgages when buyers provide a down payment of less than 20%.
Conventional mortgages are not insured or guaranteed through federal government mortgage programs. Federal Housing Administration loans, by comparison, require mortgage insurance regardless of the down payment amount.
The executive order instructs the FHFA director to consider establishing a pilot program under which Fannie Mae and Freddie Mac would identify borrowers who qualify for mortgage insurance cancellation.
The proposed system would use automated property valuations and other available information to determine whether homeowners have accumulated sufficient equity to eliminate insurance premiums.
Cancellation would remain subject to applicable equity thresholds, payment history, contractual requirements and financial safety standards.
Under existing conventional mortgage rules, borrowers can generally request PMI cancellation when their outstanding loan balance reaches 80% of the property’s original value, subject to eligibility requirements. US mortgage rates today hit 7.5%, highest since November 2023. Automatic termination generally occurs when the scheduled balance reaches 78% of that value.
The proposed program would seek to reduce the administrative steps involved in determining eligibility, potentially allowing qualifying borrowers to stop paying insurance premiums without initiating the cancellation process themselves.
Private mortgage insurance typically costs between 0.2% and 2% of the loan amount annually, according to Fannie Mae. Actual premiums vary depending on the borrower’s credit score, down payment, mortgage balance and other factors.
For example, purchasing a $600,000 home with a 10% down payment and a 30-year fixed-rate mortgage carrying a 7.3% interest rate could result in approximately $351 in monthly mortgage insurance costs, according to Freddie Mac’s mortgage insurance calculator.
The median US down payment was 13.7% of the purchase price, or $27,100, during the second quarter of 2026.
Seth Appleton, president of U.S. Mortgage Insurers, welcomed the administration’s focus on reducing housing costs.
Refinancing program could save borrowers $500 to $1,500
The executive order also seeks to reduce mortgage refinancing expenses by expanding an existing FHFA pilot program that allows eligible transactions to proceed without a traditional lender’s title insurance policy.
The administration wants to turn the limited program into an ongoing initiative, allowing qualifying borrowers to use alternative title-risk assessments instead of purchasing conventional lender’s title insurance.
Title insurance is generally required by lenders when issuing new mortgages or refinancing existing loans. It protects lenders against certain ownership disputes, liens and other title-related risks.
The FHFA program uses automated title reviews to assess whether those risks can be managed without a separate lender’s title insurance policy.
The pilot was originally scheduled to continue through November 2027 and was restricted to certain refinancing transactions with loan-to-value ratios below 80% in selected states.
Former FHFA Director Sandra Thompson told Congress in April 2024 that the initiative was limited in scope.
Thompson estimated that eligible borrowers could save between $500 and $1,500 in closing costs through the program.
The new executive order calls for expanding the initiative nationwide through Fannie Mae and Freddie Mac, subject to the FHFA director’s determination and applicable financial safety requirements.
Lender fees associated with title searches and title insurance generally account for the largest share of mortgage closing costs, according to a 2025 Urban Institute report.
Gumbinger said eliminating the requirement could provide meaningful savings because lender’s title insurance “has always been fairly pricey.”
Mortgage rates remain a major obstacle to housing affordability
The proposed changes arrive amid continued pressure on the US mortgage market.
The average interest rate on a 30-year fixed-rate mortgage stood at 7.32% as of October 22, 2026, according to Freddie Mac. Although that represented a decline from 7.40% the previous week, borrowing costs remained elevated.
Mortgage refinancing demand was down 59% in mid-October compared with the corresponding week a year earlier, indicating that higher rates continued to discourage refinancing activity.
Gumbinger cautioned that reducing individual transaction costs would not necessarily produce a substantial improvement in overall housing affordability.
The potential benefits will depend on which borrowers qualify, how the FHFA implements the measures and whether lenders pass the intended savings through to consumers.
For borrowers eligible for proactive PMI cancellation, the financial benefit could take the form of lower recurring monthly mortgage payments. Those qualifying for the expanded title acceptance program could instead receive savings on refinancing closing costs.
The executive order establishes the policy direction for both initiatives, but their practical effect will depend on the final program rules and eligibility requirements.
