President Donald Trump has signed an executive order titled "Decreasing Housing Costs for the American People" that directs federal agencies to reduce mortgage costs, including proactively cancelling mortgage insurance on eligible future loans and making permanent a pilot program that waives the lender's title insurance policy on refinancings.
The order comes less than two weeks before the Nov. 3 midterm elections, with housing affordability a major concern for voters. It builds on earlier orders including restrictions on Wall Street firms buying single-family homes.
Federal Housing Finance Agency Director Bill Pulte said on X that "millions of Americans will save thousands and thousands of dollars."
But analysts caution that the immediate consumer impact is unclear. Keith Gumbinger, vice president of mortgage website HSH, said most mortgages are carrying private mortgage insurance at this point, given high home prices and small down payments. He said he did not know whether the order would be "a game-changer in terms of the cost of housing, which is dictated by home price and mortgage rates at the moment," adding that every little bit certainly helps.
The executive order directs the FHFA to create a pilot program that cancels eligible borrowers' mortgage insurance proactively once their home equity reaches a certain threshold, applying to mortgages originated after the pilot launches. Conventional loans typically require private mortgage insurance when a down payment is under 20% of the purchase price, while Federal Housing Administration mortgages require mortgage insurance on all loans.
Currently, conventional borrowers can generally ask to remove PMI once their balance is below 80% of the purchase price or they have reached 20% equity, or it may be removed automatically at 78%, according to Fannie Mae.
The order also aims to cut refinancing costs by making permanent an FHFA pilot that waives the lender's title insurance policy and allows lower-cost alternatives. Former FHFA Director Sandra Thompson told a congressional hearing in April 2024 that the pilot was limited in scope, covering refinances with a loan-to-value ratio below 80% in a handful of states, and estimated consumers could save $500 to $1,500 in closing costs.
Seth Appleton, president of U.S. mortgage insurers, welcomed the order. "We commend the President's focus on lowering costs for future homeowners, and the private mortgage insurance industry is proud to already be delivering on that goal," he said.
Made permanent, the program could reduce costs because lender title insurance has always been fairly pricey and title-related fees make up the largest share of mortgage closing costs, according to a 2025 Urban Institute report cited by CNBC.
As of Oct. 23, 30-year fixed-rate mortgages averaged 7.32%, according to Freddie Mac, and refinance demand in mid-October was down 59% compared with the same week a year earlier.