Trump order aims to cut mortgage insurance and refinancing costs
President Trump signed an order Thursday to cut home loan costs, HousingWire and National Mortgage Professional reported. It calls for a pilot to drop mortgage insurance on some new loans. A cheaper title option is also in the plan, but only for those who refinance, and a US agency must act first.
President Donald Trump signed an order Thursday that aims to cut the cost of owning a home, HousingWire and National Mortgage Professional reported. Most of the changes are not automatic. Federal housing agencies must act first.
Mortgage insurance: The order calls for a pilot to cancel private mortgage insurance once a borrower has enough equity. Fannie Mae and Freddie Mac would check home values to find who qualifies, National Mortgage Professional reported. But the pilot would apply only to loans made after it starts. Current homeowners would not automatically become eligible, the outlet said.
Refinancing: The order tells the Federal Housing Finance Agency (FHFA) to turn a title pilot into an ongoing program for eligible refinances. That step depends on the agency's head. Fannie Mae and Freddie Mac could then accept other checks of title risk instead of a lender's title policy, National Mortgage Professional said. Any savings must be passed on to borrowers, the order says.
The FHFA must also weigh dropping appraisals, some paperwork and some fees on some refinances, the order says. These are ideas to weigh, not instant changes, National Mortgage Professional noted.
The order also tells the USDA and the VA to lower rates on home loans they make, HousingWire reported.
Lenders and brokers praised it. "This is a big deal," said Brendan McKay of the Broker Action Coalition, according to HousingWire. KBW analysts said refinances make up only around 7% of title premiums, HousingWire reported.
ALTA, a title insurance group, urged caution. It said cost cuts "must preserve protections for homeowners and their property rights and not shift risk to consumers and taxpayers." "Fraud is unaffordable, and the threats facing homeowners are growing," said ALTA CEO Chris Morton. The group says fraud and forgery claims tied to refinances average nearly $207,000.
What we know: The order seeks to cut mortgage insurance and title costs. The title changes cover only refinances and need FHFA action.
What we don't: When the FHFA will act, or how many homeowners will qualify.
Where outlets agree HousingWire and National Mortgage Professional report that the order targets mortgage insurance and title insurance costs on refinances.
Where they differ The cited reports agree on the key facts so far.