President Donald Trump is taking aim at the extra costs that can make homeownership harder to afford, signing an executive order Thursday targeting mortgage insurance, refinancing expenses and barriers to cheaper construction.
The move comes less than two weeks before the midterm elections, as high borrowing costs continue to squeeze buyers and slow the housing market.
The White House said the package seeks to make homeownership more affordable by cutting administrative burdens and expanding access to less expensive financing options. Its provisions require further action by federal agencies before borrowers see the full effects.
Taking Aim At A Monthly Mortgage Expense
A central provision directs Federal Housing Finance Agency Director Bill Pulte to pursue a pilot program that would proactively identify borrowers eligible to stop paying mortgage insurance.
Under the executive order, Fannie Mae and Freddie Mac would use automated property valuations and other information to assess whether borrowers meet equity and other cancellation requirements.
The program would apply only to mortgages made after the pilot is established. Eligibility would also depend on payment history and financial safeguards, meaning Thursday’s signing does not automatically remove insurance charges from existing borrowers’ bills.
Pulte touted the potential savings.
“Because of President Trump’s bold actions to put Americans First, millions of Americans will save thousands and thousands of dollars,” he wrote Thursday, according to The Hill. The order does not establish a uniform savings amount for individual borrowers.
Cheaper Refinancing And Construction
Trump also directed Pulte to expand a title insurance pilot into an ongoing nationwide program for eligible refinances, subject to legal and financial safeguards.
The initiative would allow approved title reviews or risk assessments in place of a lender’s title insurance policy. The order requires resulting savings to reach borrowers.
Separately, Agriculture Secretary Brooke Rollins and Veterans Affairs Secretary Doug Collins were directed to reduce rates on single-family loans made directly by their departments, consistent with law and available funding. That provision does not set a new rate for every USDA- or VA-backed mortgage.
On construction, a new Task Force on Manufactured Housing Innovation will examine ways to make factory-built homes cheaper to produce. Its recommendations are due within 180 days. The White House says modern manufacturing methods could help improve quality while lowering building costs.
A Housing Squeeze With Election Stakes
The announcement arrives against a difficult backdrop for buyers.
According to The Hill, citing Freddie Mac, the average 30-year fixed mortgage rate eased to 7.32% this week from 7.4%. Despite that decline, borrowing costs remain a substantial obstacle.
Pending home sales fell 7.3% in September from August and were 11.3% below their year-earlier level, The Hill reported, citing the National Association of Realtors.
The package drew support from housing industry groups. HousingWire reported that the Community Home Lenders of America welcomed its focus on title insurance expenses, manufactured housing affordability and veterans’ mortgage costs.
For Trump, the order provides a concrete affordability initiative to point to before voters cast their ballots. For prospective buyers and homeowners, the practical test will come as agencies establish eligibility rules and put the programs into operation.
