On October 22, 2026, the White House issued an executive order, “Decreasing Housing Costs for the American People,” intended to reduce the costs of single-family homeownership and mortgage financing.
The order instructs the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac (together, the enterprises), and several other federal agencies to explore programs to proactively cancel mortgage insurance, modernize manufactured housing production, broaden alternatives to title insurance and lower rates on certain direct federal loans.
Pilot program for proactive mortgage insurance cancellation
The order directs the FHFA director to – if determined to be in the best interests of the enterprises or FHFA, and the public – require the enterprises to launch a pilot program permitting proactive cancellation of a borrower’s mortgage insurance when equity requirements are met. The pilot would only apply to mortgages originated after its launch.
Under the pilot, the enterprises would periodically screen the single-family loans in their portfolios to gauge current property values and identify borrowers who might qualify for cancellation, drawing on automated valuation tools and other data sources. An enterprise could move to cancel mortgage insurance once it confirms that: the borrower’s equity position, measured against current market value, clears the applicable threshold; cancelling the policy would not compromise safety-and-soundness standards or conflict with the enterprises’ contractual duties; and every other statutory, contractual and regulatory condition for cancellation is satisfied.
Servicers would also be required to alert borrowers when they appear eligible for cancellation under the pilot, and to cut back on paperwork demands, appraisal fees and other obstacles that impede cancellation.
New task force created
The order creates a Task Force on Manufactured Housing Innovation to encourage greater use of modern manufacturing techniques in building factory-built homes that qualify for federal housing programs. The secretary of Housing and Urban Development (HUD) and the FHFA director will co-chair the task force, joined by the secretaries of Agriculture (USDA), Commerce, and Veterans Affairs (VA). Within 180 days, the task force must submit to the president recommendations covering how to:
- Align specifications, certifications, inspections and approvals used across federal housing and housing-finance programs.
- Establish “reciprocal recognition” between agencies of one another’s licenses, certifications, approvals and inspections, so the same work is not duplicated.
- Eliminate federal requirements and overlapping reviews that slow automation, modular construction or standardized production, or otherwise add time or cost to getting homes built.
- Leverage federal financing, insurance, guarantee and purchasing tools to encourage innovation and more production of affordable manufactured and factory-built homes.
- Foster competition among manufacturers without loosening standards for safety, quality, durability and consumer protection.
The task force must also evaluate whether federal grant funds provided to states and local governments may be conditioned on, or used to encourage, adoption, through policy or legislation, of standardized permitting and licensing for manufactured and factory-built housing.
Expansion of title insurance alternatives in refinancing
The order directs the FHFA director to, after determining that it is in the best interests of the enterprises or FHFA, and the American public, turn an existing pilot into a permanent, nationwide offering at both enterprises, under which an automated title review or other FHFA-approved title-risk assessment could substitute for a lender’s title insurance policy on qualifying refinance transactions. That pilot, launched in 2024, currently covers only refinances with loan-to-value ratios under 80% in certain locations.
In expanding the program, the FHFA director must consider extending eligibility to refinance transactions with loan-to-value ratios above the current limit where title risk remains low, along with removing geographic limitations and certifying additional title-assessment providers to promote competition. The director must also consider waiving requirements, including appraisals and income re-verification, for limited cash-out refinances that reduce a borrower’s monthly payment, where supported by existing enterprise data. The expanded program may also reduce or eliminate loan-level price adjustments and other enterprise fees on such refinances.
Any cost savings resulting from the expanded program must be passed along to borrowers, and lenders must inform borrowers of those savings.
Interest rates on USDA and VA direct loans
Separately, the order calls on the USDA and VA secretaries to lower the interest rates charged on single-family home loans issued directly by their departments, consistent with existing law and funding.
What this means
Notably, several of the order’s directives, including the mortgage insurance cancellation pilot and the expanded title insurance alternative, are discretionary: They direct the FHFA director to act only upon a determination that doing so serves the best interests of the enterprises or the FHFA and the public. The practical effect of the order will depend on how the FHFA, HUD, USDA and VA implement these directives – and on the task force’s recommendations, which are due within 180 days.
The order follows a number of federal actions aimed at increasing housing affordability and access to homeownership. In a separate but related development, on the same day as the order, the Treasury Department issued proposed regulations to implement Section 1001 of the 21st Century ROAD to Housing Act, which codifies certain requirements of a January 2026 executive order. Effective January 7, 2027, the proposed rule would restrict large institutional investors from purchasing single-family homes unless the purchase qualifies as an “excepted purchase.” Comments on the proposed rule are due by November 23.
Taken together, these actions signal the administration’s continued attention on mortgage origination and refinancing costs, manufactured housing production and the role of institutional investors in the single-family housing market. Mortgage lenders, servicers and other industry participants should monitor how the FHFA, HUD, USDA, VA and Treasury implement these directives and how the proposed rule moves through the rulemaking process.