President Donald Trump signed a sweeping executive order Thursday aimed at lowering the cost of homeownership, targeting everything from mortgage insurance premiums and refinancing fees to appraisal requirements and loan-level price adjustments.
For mortgage lenders and originators, some of the most consequential provisions extend beyond the administration's headline promises of cheaper housing. The order directs the Federal Housing Finance Agency (FHFA) to consider eliminating certain refinancing expenses, easing documentation requirements, and expanding alternatives to traditional title insurance.
The October 22 executive order, titled Decreasing Housing Costs for the American People, also calls for proactive cancellation of private mortgage insurance on eligible future loans, lower interest rates on certain government direct loans, and a federal task force to expand manufactured housing.
The measures arrive as elevated mortgage rates continue to constrain homebuyer demand and refinancing activity. Freddie Mac's latest survey put the average 30-year fixed mortgage rate at 7.32%, down from 7.40% the previous week, but still high enough to leave many existing homeowners with little financial incentive to refinance.
Rather than relying on lower interest rates alone, the administration is targeting the expenses that can make borrowing or refinancing more costly even when mortgage pricing improves.
Whether those savings reach consumers will depend largely on FHFA implementation, the participation of Fannie Mae and Freddie Mac, and the eligibility rules ultimately adopted.
Refinancing Changes Go Beyond Title Insurance
One of the order's most significant provisions directs FHFA to expand the government-sponsored enterprises' existing title acceptance pilot into an ongoing nationwide program, subject to the agency director's determination that the expansion is appropriate and consistent with safety and soundness requirements.
Under the proposed expansion, Fannie Mae and Freddie Mac could accept automated title reviews or other FHFA-approved assessments of title risk instead of requiring a traditional lender's title insurance policy on eligible refinances.
The initiative builds on a title acceptance pilot advanced under the Biden administration in 2024, which drew opposition from title insurance industry groups concerned about potential risks and consumer protections. Trump's order would move that initiative toward broader nationwide adoption, subject to FHFA approval.
The order also directs FHFA to consider removing geographic restrictions, approving additional title-assessment providers, and extending eligibility beyond the pilot's current 80% loan-to-value threshold where title risk remains low.
But the refinancing provisions do not stop there.
FHFA is also instructed to consider waiving appraisals, income re-verification, and other documentation requirements for limited cash-out refinances that reduce a borrower's monthly payment, provided the enterprises already have sufficient information to support those decisions.
The agency must also consider reducing or eliminating loan-level price adjustments (LLPAs) and other enterprise fees on those transactions.
Together, those changes could lower the upfront cost of refinancing while reducing some of the processing requirements that add time and expense to mortgage transactions.
For LOs, the potential benefit extends beyond lower closing costs. A borrower who cannot justify refinancing because the savings would take too long to recover the upfront expenses could face a different calculation if title, appraisal, or enterprise fees are reduced.
The order also includes a requirement that savings generated by the expanded title acceptance program be passed along to borrowers, with lenders informing them of those savings.
However, the appraisal, documentation, and LLPA provisions are directives for FHFA to consider changes, not immediate waivers or fee eliminations. Existing program requirements remain in place unless and until the agencies implement new policies.
Automatic Mortgage Insurance Cancellation Comes With Limits
Mortgage insurance cancellation has also been a focus of broker advocacy. The Broker Action Coalition previously backed legislation to end annual FHA mortgage insurance premiums for qualifying borrowers.
The executive order targets private mortgage insurance, directing FHFA to establish a pilot program under which Fannie Mae and Freddie Mac would periodically review eligible mortgages using automated valuation models and other available property data.
The objective is to identify homeowners who have accumulated enough equity to qualify for mortgage insurance cancellation without requiring them to initiate the process themselves.
Under the proposed framework, the enterprises would determine whether borrowers satisfy applicable equity thresholds, payment-history standards, and other legal and contractual requirements. Servicers would then be required, where legally permitted and operationally feasible, to notify eligible borrowers and reduce unnecessary paperwork and appraisal expenses.
For qualifying homeowners, the potential savings would come through lower monthly mortgage payments rather than a change in their interest rates.
There is, however, a significant limitation: the pilot would apply only to mortgages originated after the program is established.
Existing homeowners would not automatically become eligible for cancellation under the new pilot simply because their properties have appreciated.
The order also does not eliminate existing mortgage insurance cancellation requirements or direct lenders to remove coverage from every loan that reaches a particular equity level.
For mortgage servicers, the proposed program could introduce new responsibilities involving automated property valuations, borrower eligibility reviews, notifications, and insurance cancellation procedures.
Manufactured Housing Gets A Federal Task Force
The order also establishes a Task Force on Manufactured Housing Innovation, co-chaired by the Department of Housing and Urban Development and FHFA, with participation from the departments of Agriculture, Commerce, and Veterans Affairs.
The task force has 180 days to recommend ways to expand manufactured and other factory-built housing eligible for federal housing programs.
Its mandate includes standardizing inspections and certifications, eliminating duplicative federal reviews, encouraging modern manufacturing techniques, and examining whether federal grants could incentivize state and local governments to streamline permitting.
The effort addresses a segment of the housing market often promoted as a lower-cost alternative to traditional site-built homes. But manufactured housing has faced its own affordability pressures. A LendingTree analysis found that manufactured-home prices increased 58% between 2018 and 2023.
The task force's recommendations could eventually affect financing opportunities for lenders serving entry-level buyers, particularly if more factory-built properties become eligible for federal mortgage programs.
VA And USDA Rate Reductions Have A Narrower Reach
The executive order separately directs the secretaries of Agriculture and Veterans Affairs to reduce interest rates on single-family mortgage loans made directly by their departments, subject to applicable law and available funding.
The distinction between direct and guaranteed loans is important.
The directive does not establish a broad interest-rate reduction for mortgages originated by private lenders through the VA loan guaranty program or USDA's guaranteed loan program.
Instead, the potential rate relief applies to qualifying loans issued directly by the federal agencies. The order does not specify the size of the reductions or when new rates would take effect.
Industry Groups Welcome Relief, But Raise Implementation Questions
The Community Home Lenders of America (CHLA) praised the administration's action, particularly the provisions addressing title insurance, manufactured housing, and veterans' mortgage costs.
"CHLA commends the Trump Administration for today's Executive Order to reduce housing costs," said Scott Olson, the association's executive director.
Olson said the initiatives reflect priorities that CHLA has advocated for over several years, including reducing refinance title insurance expenses and expanding access to affordable manufactured homes.
The Mortgage Bankers Association also welcomed the initiative.
"Our lender members welcome these latest initiatives to reduce the costs of refinancing and expand innovative manufactured housing options for potential homebuyers," said MBA President and CEO Bob Broeksmit.
In an October 22 statement, Broeksmit said the association would work with FHFA, Fannie Mae, and Freddie Mac on implementation while balancing consumer, taxpayer, and GSE interests.
The private mortgage insurance industry offered a more qualified response.
Seth Appleton, president of U.S. Mortgage Insurers, noted that existing mortgage insurance rules already provide cancellation rights and that the industry has supported efforts to identify homeowners eligible for cancellation through property appreciation.
Appleton said a pilot covering new originations could help borrowers save while preserving the protections mortgage insurance provides to lenders, the enterprises, and taxpayers.
Meanwhile, the American Action Forum, a center-right policy research organization, cautioned that greater reliance on automated valuations and title assessments could introduce risks if property values are overstated or responsibility for title defects is unclear.
The group also argued that the order primarily addresses financing and transaction expenses rather than the underlying shortage of housing supply.
A Broader Push To Cut Mortgage Costs
The administration's latest action follows a separate push from the mortgage industry to address expenses that contribute to homeownership costs. Earlier this month, the Mortgage Bankers Association proposed a series of affordability reforms calling for lower GSE pricing charges, streamlined refinancing, and reductions in mortgage-related expenses.
Several of those proposals overlap with the areas targeted by Trump's order, particularly refinancing expenses and GSE fees.
The new directive could give FHFA an opportunity to pursue some of those changes through its oversight of Fannie Mae and Freddie Mac, although the order leaves the agency discretion over several of the most consequential provisions.
For originators, the immediate implications are largely operational. Expanded title acceptance could change refinance closing-cost estimates. Appraisal and documentation relief could make certain transactions easier to process. Lower enterprise fees could improve pricing on eligible loans.
The scope of those benefits will depend on which proposals FHFA ultimately adopts, how broadly eligibility is defined, and whether lenders can incorporate the changes into their existing workflows.
For now, the order establishes a potentially significant shift in federal mortgage policy: an effort to lower the cost of borrowing, refinancing, and maintaining a mortgage without waiting for interest rates to fall.
The next changes will come through agency implementation, not the president's signature alone.
