President Donald Trump has signed an executive order aimed at reducing homeownership expenses through mortgage insurance reforms, lower refinancing costs, manufactured housing initiatives and reduced interest rates on certain federally backed loans.
By yourNEWS Media Newsroom
President Donald Trump signed an executive order Thursday, Oct. 22, directing federal agencies to reduce mortgage-related expenses, eliminate certain insurance premiums and expand affordable housing options as elevated home prices and borrowing costs continue to strain American households.
The executive order, titled “Decreasing Housing Costs for the American People,” establishes several initiatives intended to make purchasing and maintaining a home less expensive, including changes to mortgage insurance, refinancing requirements and federal lending programs.
The announcement comes less than two weeks before the Nov. 3 midterm elections, with housing affordability remaining a concern for prospective buyers and existing homeowners.
One of the order’s central provisions directs the Federal Housing Finance Agency to establish a pilot program allowing qualifying homeowners to have mortgage insurance premiums canceled automatically once they satisfy equity requirements based on their properties’ current market values.
Mortgage insurance typically protects lenders when borrowers make relatively small down payments. Although borrowers generally pay the premiums, the protection primarily benefits lenders.
Under the proposed program, eligible homeowners could have those payments eliminated without initiating the traditional cancellation process, potentially reducing their monthly housing expenses.
The pilot would apply only to mortgages originated after the program is established, meaning existing borrowers would not automatically qualify for the new benefit.
The order also directs the FHFA to expand an existing title insurance waiver pilot into a permanent nationwide program, subject to specified conditions.
The initiative would allow qualifying borrowers to use alternatives to traditional lenders’ title insurance policies when refinancing mortgages, potentially reducing closing costs.
Title insurance protects against certain ownership disputes and defects in property titles. Its cost is generally included among the fees borrowers encounter when purchasing or refinancing a home.
The administration argues that allowing additional options could increase competition and reduce expenses without eliminating protections for eligible transactions.
The order further directs the departments of Agriculture and Veterans Affairs to reduce interest rates on single-family home loans made directly through their respective programs, subject to applicable laws and available funding.
Those changes could benefit qualifying borrowers participating in federal housing assistance programs, although the administration has not announced specific rate reductions or implementation dates.
Trump also established a Task Force on Manufactured Housing Innovation, co-chaired by Housing and Urban Development Secretary Scott Turner and FHFA Director Bill Pulte, or their designees.
The task force will examine ways to reduce construction costs and expand the use of modern manufacturing methods for factory-built homes eligible for federal housing programs.
Manufactured housing has long been considered a potentially lower-cost alternative to traditional site-built construction, particularly in communities where land availability and development expenses create barriers to homeownership.
According to the White House fact sheet accompanying the order, the administration intends to remove regulatory obstacles and outdated mortgage procedures that it says contribute to high housing expenses.
“Homeownership is a vital pillar of our great Nation, and President Trump and his Administration are working tirelessly to cut burdensome costs and red tape to make the American dream of homeownership more affordable for all Americans,” the White House stated.
“Unnecessary regulations and outdated mortgage processes have made homeownership unaffordable and driven up closing costs.”
The president’s order also emphasizes the use of advanced technology to modernize mortgage lending and property valuation.
“It is the policy of my Administration to reduce regulatory barriers to mortgage origination and costs impeding homeownership; embrace innovative risk and value assessment technologies that incorporate Super Intelligence to drive down mortgage and homeownership costs; and promote competition and innovation throughout the housing and mortgage market,” the order stated.
The measures arrive as mortgage rates and home prices continue limiting affordability.
According to Freddie Mac’s weekly mortgage survey, the average rate on a 30-year fixed-rate mortgage declined to 7.32% this week from 7.40% the previous week, marking its first decrease in nine weeks.
Housing construction has also weakened. The Census Bureau reported that single-family housing starts declined an estimated 4.6% in September compared with August, while permits for future single-family construction fell 4%.
The figures illustrate the challenges facing builders and buyers as elevated financing costs reduce purchasing power and discourage new development.
Separately, the Treasury Department announced proposed regulations Thursday restricting large institutional investors from purchasing additional single-family homes.
The Treasury proposal implements provisions of the 21st Century ROAD to Housing Act, which limits certain residential property acquisitions by large investment firms.
Beginning Jan. 7, 2027, institutional investors controlling at least 350 single-family homes generally would be prohibited from acquiring additional properties unless their purchases qualify for statutory exceptions.
Those exceptions include certain build-to-rent developments, rehabilitation projects and programs designed to help renters become homeowners.
Treasury Secretary Scott Bessent said the regulations are intended to expand opportunities for individual buyers while preserving investment in housing construction.
“Treasury is working to ensure American families and workers have a fair shot at purchasing homes in their communities by increasing housing supply and limiting large institutional investors’ role in the market, while supporting a strong, stable housing market and avoiding unnecessary disruption,” Bessent said.
The proposed regulations will undergo a public comment period before being finalized.
The executive order and institutional investor restrictions represent separate parts of the administration’s housing agenda. One targets financing and ownership expenses, while the other seeks to limit competition from large investment companies for existing single-family properties.
Neither initiative guarantees immediate reductions in home prices or mortgage rates across the broader market. Their effects will depend on agency implementation, eligibility rules, lender participation and economic conditions.
For qualifying homeowners, however, the proposed mortgage insurance and refinancing reforms could reduce expenses once the programs become operational, while restrictions on institutional purchases are scheduled to begin in January.
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