Trump signed an order directing agencies to pursue lower mortgage and refinancing costs.
Why it matters: The order could reduce recurring insurance premiums and refinance closing costs for some borrowers. But it does not immediately lower market mortgage rates, and its impact depends on FHFA implementation.
- The mortgage-insurance pilot would apply to future single-family loans owned, guaranteed or securitized by Fannie Mae and Freddie Mac.
- FHFA is directed to consider making its title-acceptance pilot permanent, potentially saving $500 to $1,500 in qualifying refinance closing costs.
- The order requires refinancing savings to be passed through to borrowers and disclosed by lenders.
- A manufactured-housing task force has 180 days to recommend changes to approvals and federal reviews.
President Donald Trump signed the executive order on October 22, directing the Federal Housing Finance Agency to consider a pilot that would use automated valuation models and other data to identify borrowers who may qualify for proactive mortgage-insurance cancellation.
The pilot would cover mortgages made after it begins and backed by Fannie Mae or Freddie Mac. It would not automatically change every U.S. mortgage, existing loans or other insurance regimes. Under current consumer-protection rules, conventional borrowers can generally request private mortgage-insurance cancellation when their balance reaches 80% of the property's original value, subject to conditions.
The order also asks FHFA to expand its title-acceptance pilot into a nationwide program for eligible refinancings. Automated title reviews or other title-risk assessments could replace lender title insurance. FHFA's earlier pilot estimated potential closing-cost savings of $500 to $1,500 on qualifying loans.
FHFA is asked to consider eligibility above an 80% loan-to-value limit where title risk is low, remove geographic restrictions, approve additional title-assessment providers, waive certain appraisals and income re-verification, and reduce or eliminate some Enterprise fees. The order says savings must be passed through to borrowers, who must be informed by lenders.
It also directs the Agriculture and Veterans Affairs secretaries, subject to law and available appropriations, to reduce rates on some direct single-family loans. A HUD-FHFA task force will make manufactured-housing recommendations within 180 days.
The average 30-year fixed mortgage rate was 7.32% for the week of October 22, above 6.19% a year earlier, according to AP. The order does not control Treasury yields, mortgage-backed-security pricing or broader market rates.
By the numbers
- 7.32% - average U.S. 30-year fixed mortgage rate for the week reported October 22, 2026
- $500-$1,500 - estimated potential refinance closing-cost savings under FHFA's earlier title-acceptance pilot
- 180 days - deadline for the manufactured-housing task force to make recommendations
Yes, but: The order sets an agency-directed framework rather than an immediate nationwide savings program. It specifies no mortgage-insurance savings amount, pilot start date, eligibility criteria or USDA and VA rate reductions, and implementation must comply with applicable law and available appropriations.
What's next: FHFA must decide whether and how to establish the mortgage-insurance and title-acceptance programs. The manufactured-housing task force has 180 days to issue recommendations.