October 26, 2026. By Abdel Khawatmi | PRMG – Got Mortgages.
Housing affordability involves more than the interest rate. Mortgage insurance, closing costs, and the expense of building homes all influence what families can afford.
On October 22, President Donald Trump signed an executive order targeting those costs. Its major initiatives address mortgage-insurance cancellation, refinancing expenses, factory-built housing, and interest rates on certain federal direct loans. The White House describes the objective as reducing the cost of homeownership and expanding access. (Source: White House fact sheet)
For buyers and homeowners, the useful question is: Which changes could affect my mortgage, and when?
Why FHFA matters
The Federal Housing Finance Agency, or FHFA, regulates Fannie Mae and Freddie Mac, along with the Federal Home Loan Banks. Its oversight of Fannie and Freddie gives it an important role in the conventional mortgage market. (Source: FHFA)
FHFA and FHA are different organizations. That distinction matters when reading headlines about “mortgage insurance.” A change affecting conventional mortgage insurance should not be assumed to change an FHA borrower’s insurance requirements.
1. A more proactive approach to removing mortgage insurance
The order calls for a conditional FHFA pilot using automated property valuations and other data to identify eligible Fannie Mae and Freddie Mac borrowers for mortgage-insurance cancellation. Equity, payment history, contractual obligations, and other applicable requirements still matter.
The pilot applies only to mortgages made after the pilot is established. Signing the order does not automatically enroll existing mortgages or remove their insurance. (Source: Executive order)
The potential benefit is easier identification of borrowers who qualify. Barron’s reported that the initiative would allow the enterprises to use internal valuation models to detect sufficient appreciation, while emphasizing that the prospective scope limits immediate benefits for existing homeowners. (Source: Barron's)
An illustration of why current value matters:
| Item | Hypothetical amount |
|---|---|
| Original purchase price | $500,000 |
| Remaining mortgage balance | $440,000 |
| Current accepted property value | $550,000 |
| Loan-to-value ratio using current value | 80% |
The calculation is $440,000 divided by $550,000.
This example illustrates equity only. It does not establish eligibility for cancellation. The accepted valuation, loan’s age, property type, payment record, and applicable program rules must also be considered.
If a homeowner’s monthly mortgage-insurance charge were $180, eliminating it would reduce that expense by $2,160 annually. That is an illustration, not an estimate of what this order will save a particular borrower.
2. Existing homeowners may already have options
Homeowners do not necessarily need to wait for a new pilot to ask about PMI removal.
The Consumer Financial Protection Bureau explains that, for many covered mortgages:
- Borrowers can request cancellation when the balance is scheduled to reach 80% of the home’s original value, or reaches that threshold earlier through additional payments.
- Requests generally must be in writing, with a satisfactory payment history and other conditions met.
- Automatic termination generally occurs when the balance is scheduled to reach 78% of original value, provided payments are current.
FHA loans and lender-paid mortgage insurance have different requirements. (Source: CFPB)
Fannie Mae also has existing rules for borrower-requested cancellation based on current property value. Those rules include requirements involving seasoning and loan-to-value ratios; a homeowner should not assume that reaching 20% equity always qualifies. (Source: Fannie Mae Servicing Guide)
There was movement before this executive order, too. Fannie Mae’s September 16, 2026 lender letter permitted servicers to solicit borrowers who may qualify for cancellation based on current value. (Source: Fannie Mae servicing communications)
Our practical recommendation: Ask your servicer for the cancellation requirements applicable to your loan before paying for an independent appraisal or deciding to refinance.
3. Lower title-related costs on eligible refinances
The order directs FHFA, subject to specified determinations and safeguards, to expand title acceptance into an ongoing nationwide program through both enterprises. Eligible refinances could use an approved title-risk assessment instead of a lender’s title insurance policy. Savings must be passed to borrowers and disclosed. (Source: Executive order)
This builds on an existing program. FHFA’s original pilot targeted certain low-risk refinances and addressed the requirement for a lender’s title policy or attorney opinion letter. It did not broadly eliminate title protection for home purchases. (Source: FHFA)
Fannie Mae’s pilot description similarly identifies certain refinance transactions with low title risk as eligible to proceed without that policy or letter. (Source: Fannie Mae pilot transparency)
For homeowners, the potential value is a lower upfront cost to refinance. But a waiver of one expense does not mean every closing cost disappears.
Consider this simplified example:
| Hypothetical refinance comparison | Amount |
|---|---|
| Upfront costs | $4,000 |
| Monthly savings | $200 |
| Simple break-even period | 20 months |
| Upfront costs after a hypothetical $1,000 reduction | $3,000 |
| Revised simple break-even period | 15 months |
This is arithmetic, not a program quote. A complete comparison should also evaluate the remaining loan term, new term, financed costs, and total interest.
4. Possible documentation and pricing changes
The order also tells FHFA to consider broader refinance eligibility, selected appraisal and income-documentation waivers where existing data support them, and reductions in enterprise pricing adjustments or fees.
These are items for consideration, not universal borrower entitlements. A lender must confirm the rules actually available for a specific transaction. (Source: Executive order)
That distinction is especially relevant for anyone currently purchasing or refinancing. Build the decision around a documented offer available today.
5. Manufactured housing and future supply
A new task force, co-chaired by HUD and FHFA, will examine ways to improve factory-built housing production and reduce costs. Its work focuses on modern manufacturing and homes eligible for federal housing programs. (Source: White House fact sheet)
Recommendations are due within 180 days. (Source: Executive order)
Our assessment: This provision could matter over a longer period, because producing more affordable homes requires implementation beyond a policy announcement. Buyers should still evaluate the specific property, land arrangement, financing eligibility, and local approvals.
6. What the VA and USDA rate provision actually covers
The rate directive concerns single-family loans made directly by USDA and VA. It does not announce an across-the-board rate cut for every lender-originated VA or USDA mortgage. (Source: Executive order)
For veterans and rural homebuyers, the next step is identifying the actual program involved before assuming the announcement changes an available rate or an existing payment.
What New Jersey homeowners should do next
For households in Ocean, Monmouth, Essex, Union, and throughout New Jersey, we recommend starting with a mortgage review:
- Identify your loan type. Confirm whether it is conventional, FHA, VA, USDA, or another product.
- Check your mortgage-insurance charge. Find out what you are paying and which cancellation rules apply.
- Review your balance and property value. Use a valuation acceptable to the servicer when pursuing cancellation.
- Compare refinancing with keeping your current loan. Include costs, payment changes, and the remaining repayment period.
- Ask for confirmed eligibility. Before relying on a new benefit, obtain the lender’s or servicer’s applicable requirements.
At Got Mortgages, our view is that these initiatives deserve attention because smaller recurring expenses and lower transaction costs can make a meaningful difference. The value to an individual household, however, comes from matching an available option to that household’s numbers.
Bring me the situation. Let’s work through the options.
To review your mortgage insurance, refinancing opportunities, or homebuying strategy, call 973-536-0276 or visit https://gotmortgages.com.
Abdel Khawatmi | NMLS #1712023
PRMG | NMLS #75243
Information reviewed October 26, 2026. Program availability and eligibility depend on agency implementation and applicable lender, investor, and servicing requirements. Examples are illustrative and do not represent a loan offer or guaranteed savings.