The news: on October 22, 2026, President Donald Trump signed an executive order aimed at reducing expenses for homeowners — including a pilot program to cancel mortgage insurance premiums once borrowers meet equity requirements based on current market values, and making permanent a pilot that waives title insurance requirements for mortgage refinancings, Reuters reported on October 22, 2026.
The order also sets up a task force on manufactured housing and directs the agriculture and veterans affairs secretaries to reduce interest rates on single-family home loans issued by their departments. Here's exactly what the order does, who could save money, and what you should do now.
In this guide
The news in 60 seconds
High home prices and elevated mortgage rates have made housing affordability a political flashpoint ahead of next month's midterm elections. The context behind the order, per Reuters:
- The average 30-year fixed mortgage rate hit 7.40% last week — the highest in about three years — before easing to 7.32% this week, according to Freddie Mac.
- Contracts to buy previously owned US homes plunged to a record low in September, according to the National Association of Realtors.
- US single-family housing starts fell 4.6% in September, and permits dropped 4% to their lowest in three-and-a-half years.
Against that backdrop, the White House said the order targets homeowner expenses directly: insurance premiums (mortgage insurance), refinancing costs (title insurance), and interest rates on certain government-backed home loans. The two insurance items are the biggest deal for everyday homeowners — and they're the ones insurance regulators and lenders will now have to put into practice.
Mortgage insurance: the cancellation pilot explained
Mortgage insurance is the extra monthly charge most buyers pay when they put down less than 20% on a home. On conventional loans it's called private mortgage insurance (PMI); it typically costs roughly $30 to $70 a month for every $100,000 borrowed, depending on your down payment and credit profile. On a $350,000 loan, that's roughly $1,300 to $2,900 a year — a real line item in your monthly payment.
Under current federal rules, PMI is automatically terminated once your loan balance falls to 78% of the home's original value, and you can usually request cancellation at 20% equity. The catch: that math uses the purchase price — rising home values don't count under today's rules.
That's what the new pilot would change. The order directs the Federal Housing Finance Agency (FHFA) — which oversees Fannie Mae and Freddie Mac — to launch a pilot letting borrowers cancel mortgage insurance once they meet equity requirements based on current market values. In plain English: if your home has appreciated since you bought it, that appreciation could count toward the equity needed to drop PMI.
If you're a first-time buyer still weighing a low down payment against the cost of PMI, see our guide for first-time home buyers on how insurance and closing costs factor into the real price of a home.
Title insurance: refinancing relief made permanent
Title insurance protects against losses from problems with a property's title — undisclosed liens, recording errors, ownership disputes. A lender's title policy is typically required at closing and costs roughly a few hundred to well over a thousand dollars depending on the state and loan size; an owner's policy is optional and costs roughly the same again.
On a refinance, though, the lender already held a lien on the property and the title chain was searched at the original purchase — so the incremental risk is small while the fee is real. That's the logic behind an FHFA pilot program that let qualifying mortgage refinancings skip the traditional title insurance requirement, replacing it with an alternative title-review process. Reuters reports the order makes that pilot permanent.
The practical effect: when mortgage rates eventually fall and refinancing makes sense, your refi closing costs should be lower — potentially by several hundred dollars per refinance — because the lender's title insurance line item drops out. It's not a rate cut, but at today's closing-cost levels it meaningfully reduces the "break-even" math on refinancing.
The other moving parts (USDA, VA, manufactured housing)
Two more items round out the order, though they're narrower than the insurance provisions:
- USDA and VA loan rates: the agriculture and veterans affairs secretaries are directed to reduce interest rates on single-family home loans issued by their departments — relevant for rural buyers (USDA) and veterans (VA), a meaningful but smaller slice of the market.
- Manufactured housing task force: a new task force on manufactured housing innovation aims to expand the factory-built homes eligible for federal housing programs — a supply-side move that could matter more over the long term than the short term.
Neither changes your insurance bill directly, but cheaper factory-built housing and lower government-loan rates chip away at the same affordability wall — and note the pattern: the administration is aiming at the full stack of homeownership costs, insurance included.
What it means for your wallet
Which of these actually lands money in your pocket depends on your situation:
- Paying PMI right now: you're the biggest potential winner. If your home has appreciated since you bought, the pilot could let you cancel PMI based on today's value instead of the original price — savings of roughly $100–$250 a month on a typical loan until the program details land.
- Thinking about refinancing: the permanent title insurance waiver trims closing costs the next time you refi, which shortens the time it takes a lower rate to pay for itself.
- USDA/VA borrowers: rate reductions on those programs would lower your payment directly — watch for agency announcements, since the order directs action but the specifics are pending.
- Not yet a homeowner: the order doesn't cut home prices or mortgage rates today. The average 30-year fixed is still around 7.3%, so don't let the headlines move your buying timeline.
One important caveat: executive orders direct agencies to act, but they aren't instant. FHFA must write the pilot's rules, lenders must adopt them, and servicers must train staff — all of which takes months. Treat this as a confirmed direction of travel, not a switch that flipped on October 22.
What to do now: 6 steps
- Find out if you're still paying PMI — and how much. Pull your latest mortgage statement. The PMI line item is usually listed right on it. If you don't see one, you may have paid it off already or rolled it into the loan.
- Estimate your current equity. Check recent comparable sales in your area or a home-value estimate, then compare to your remaining loan balance. If your equity is near or above 20% of the home's current value, you'll want to be first in line when the pilot opens.
- Don't wait on the pilot to act — check the existing rules. Under federal law, PMI is generally terminated automatically at 78% of the original value, and you can usually request cancellation at 80% equity. Call your servicer and ask what they need to verify your equity today.
- If you're planning a refinance, get written closing-cost estimates. Ask your lender whether the permanent title insurance waiver applies to your refinance and what replaces the traditional lender's policy — fees vary widely by state.
- Watch for FHFA announcements. The pilot's eligibility rules, start date, and application process will come from FHFA — not from your lender first. Bookmark fhfa.gov news updates or check back here; we'll update this guide when details drop.
- Review your escrow statement. PMI sits inside most escrowed payments, so a PMI cancellation usually means a lower monthly payment — but confirm the new amount with your servicer rather than assuming.
Frequently asked questions
Does this executive order cancel my PMI immediately?
No. The order directs FHFA to launch a pilot program — it doesn't cancel anyone's mortgage insurance on its own. FHFA must design the program first, so the practical question is when and how to qualify. In the meantime, existing cancellation rights (automatic at 78% of original value, request-based at 80% equity) still apply — call your servicer.
Which loans are covered by the mortgage insurance pilot?
The order targets FHFA, which regulates Fannie Mae and Freddie Mac — so conventional conforming loans are the clear focus. FHA loans carry their own mortgage insurance premium (MIP) with different rules, and VA loans don't use PMI at all (they use a funding fee). Details will come in the FHFA program announcement.
How much could I save by dropping title insurance on a refinance?
It varies by state and loan size, but a lender's title policy typically runs from a few hundred to well over a thousand dollars at closing. On a refinance — where the title was already searched at purchase — that's real savings that shortens your break-even period on the new rate.
Where can I verify this story?
The reporting is Reuters, via SRN News, October 22, 2026, based on the White House announcement. FHFA will publish the pilot's eligibility rules separately; we'll update this guide when they're released.