Donald Trump mortgage executive order targets mortgage insurance, title costs and refinance fees on Thursday. Homeowners and borrowers refinancing loans could see lower carrying costs if the new programs move through the Federal Housing Finance Agency.
45 provisions in the 21st Century Road to Housing Act gave the order its policy backdrop, but Trump refused to sign that measure even as it became law. The new directive instead orders the Federal Housing Finance Agency to build a pilot for Fannie Mae and Freddie Mac that can cancel mortgage insurance for select borrowers who meet equity requirements.
Federal Housing Finance Agency pilot
The pilot would use automated valuation models to check home values periodically and end mortgage insurance once borrowers have enough equity. That matters most for owners who are near the 20% equity threshold, because homeowners with at least 20% equity in their home are not required to carry mortgage insurance.
The order also directs the Federal Housing Finance Agency to expand automated title reviews in place of traditional lender’s title insurance policies, and to waive appraisals and documentation requirements for certain refinances while making sure savings go directly to borrowers. For a refinancing household, the practical effect is narrower closing costs and fewer fees tied to paperwork and insurance.
Pulte, Turner and manufactured homes
Bill Pulte and Scott Turner are set to chair the task force on manufactured housing innovation, which the order ties to more affordable manufactured housing. Turner said, "Trump is committing to bring even more innovative and affordable housing solutions to market for the American people," and added, "For decades, home building has been crippled by regulatory red tape, but the Task Force on Manufactured Housing Innovation can usher in the next generation of housing by modernizing standards and speeding up approvals across government".
Trump also said he wanted to see new technologies that use artificial intelligence, or "super intelligence," to accelerate the housing market. The order says it is the policy of the Trump administration to reduce regulatory barriers to mortgage origination and costs impeding homeownership, a direct signal that the focus is on the fees and approvals that sit between a borrower and a closing table.
Shannon McGahn, chief advocacy officer at the National Association of Realtors®, said, "We appreciate the President’s continued focus on this critical". Pulte posted that the action was "the greatest Housing Executive Order in History" and said it could affect "thousands" of borrowers, but how much each borrower could save under the new pilot programs is not specified.
