The White House issued an executive order directing measures to reduce mortgage insurance, refinancing and federal home loan costs. Subject to a determination by the Federal Housing Finance Agency (FHFA) director that the measure serves the interests of Fannie Mae and Freddie Mac or the FHFA, and the public, the enterprises must establish a pilot for proactive mortgage insurance cancellation. It would cover only mortgages originated after the pilot is established, using automated valuations and other data to identify eligible borrowers based on current property values. Cancellation must meet applicable equity, payment history, contractual and other requirements, alongside financial safety and soundness standards. Servicers must promptly notify potentially eligible borrowers and reduce unnecessary documentation and appraisal costs where legally permitted and operationally feasible. The order also conditionally directs the FHFA to expand its title acceptance pilot into an ongoing nationwide program through both enterprises, allowing approved title assessments instead of lenders’ title insurance on eligible refinances. The director must consider eligibility above the current 80% loan-to-value limit, additional assessment providers, and reduced documentation and fees for qualifying refinances that lower monthly payments. These are matters for consideration rather than adopted changes. Resulting savings must reach borrowers, and lenders must disclose them. Separately, the Agriculture and Veterans Affairs departments must reduce interest rates on single-family loans they make directly, consistent with applicable law and available appropriations. A new Task Force on Manufactured Housing Innovation must submit recommendations within 180 days to streamline federal approvals, remove duplicative requirements and support modern production methods for housing eligible for federal programs. It must also assess whether federal grants can incentivize standardized state and local permitting and licensing, and prepare related legislative recommendations.
United States White House orders mortgage cost reductions and measures to expand manufactured housing
The United States White House issued an executive order conditionally directing a pilot for proactive mortgage insurance cancellation and nationwide expansion of alternatives to lenders’ title insurance on eligible refinances. It also requires lower rates on direct Agriculture and Veterans Affairs home loans, subject to law and appropriations. A new manufactured housing task force must recommend measures within 180 days to streamline approvals and support modern production methods.